Fashion Turnarounds: Macy's and Capri Holdings Show Progress

Two major fashion companies are in turnaround mode: Macy's and Capri Holdings. The CEOs of both companies, Tony Spring and John Idol, spoke at Goldman Sachs' annual retail conference about their strategies for growth.

Macy's, which launched its 'Bold New Chapter' two-and-a-half years ago, is focusing on narrowing its store count, reimagining locations, and accelerating growth in luxury brands. According to Spring, the plan is working, with 9 out of 10 quarters showing growth in their reimagined stores.

Capri Holdings, which has been through a tumultuous period after being dropped by Tapestry Inc., is also on the move. Idol described Michael Kors as having been 'off trend' but said changes are starting to show, with tangible results from marketing, product, and in-store experience improvements.

One of the key steps for Capri Holdings is cutting back on price promotions, which boost sales but hurt margins and consumer perception. Idol noted that this will be a 'painful quarter' for the company's full-price business.