Macy’s posts 16% increase in Q2 income; raises annual guidance
Cincinnati -- Macy's reported a nearly 16% increase in net income for its second quarter as the chain benefited from cost controls and its ongoing strategy of tailoring its fashions to local markets. The company said it was raising its full-year profit forecast.
Macy's net income rose to $279 million for the three-month period ended July 28, up from $241 million in the year-ago period.
Revenue rose 3% to $6.12 billion, from $5.94 billion a year ago. Same-store sales also increased 3%. Online sales (Macys.com and Bloomingdales.com combined) were up 36.1% in the second quarter. (Online sales are included in the same-store sales calculation for Macy's.)
"We were pleased with our spring season results, and they came on top of exceptionally strong spring season performances in each of the past two years," said Terry J. Lundgren, Macy's chairman, president and CEO in a statement. "This indicates that our business continues to have forward momentum, even with challenges that include a soft economy, lower spending by international tourists and temporary disruptions" related to its major renovation of its flagship store in Manhattan.
The chief executive said the company would take a break in the remodeling of its flagship Herald Square store during the holiday season so as not to impede shopping.