Macy’s Q2 profit surges 64%, raises yearly outlook
Cincinnati -- Macy's reported a whopping 63.9% increase in its second-quarter profit, beating Wall Street estimates. The department store chain is also raising its full-year profit outlook.
Chairman and CEO Terry J. Lundgren described the quarter as "the most successful second quarter and spring season in more than a decade," adding that it came on top of an impressive first half performance last year.
Macy’s reported that its net income increased to $241 million in the three months ended July 30, up from $147 million in the year-ago period.
Revenue rose 7.3% to $5.94 billion from $5.54 billion a year ago. Same-store sales rose 6.4%. Online sales for macys.com and bloomingdales.com combined were up 40.2% in the second quarter. (Online sales are included in Macy’s same-store sales calculation for Macy's.)
"To date this year, we have driven significant additional sales growth, gained market share, maintained strong margins, managed expenses and generated a very healthy level of cash," said Lundgren in a statement. “We have moved quickly to establish a culture of growth at Macy’s, Inc. since reorganizing the company in 2008 and 2009, and yet we feel we are just beginning to take advantage of the benefits we envision.”
The CEO said all of the company’s key strategies were working to help it better understand its customers and deliver the merchandise they want and to engage its customers in stores, online and via mobile devices.
Lundgren said the company would continue to “closely monitor developments in the economy and financial markets,” and said Macy’s was “cautious but optimistic about this fall and are staying focused on those factors we can control.”
The company opened no new stores in the first half of 2011, and reopened a Macy’s store in Warwick, R.I., following flood damage in 2010. The company closed a Macy’s furniture gallery in San Antonio, Texas and a furniture clearance center in Naperville, IL. Both businesses were transitioned into nearby Macy’s stores.
In the second half of 2011, the company is opening three new Bloomingdale’s Outlet stores, as previously announced.