Macy’s Q3 profit up 4.3%, beats estimates; to stop reporting monthly sales
Cincinnati – Macy’s on Wednesday reported a better-than-expected 4.3% increase in third-quarter net income, helped by sales gains, and slightly raised its full-year profit outlook.
Macy’s also announced that it will discontinue reporting monthly sales, beginning in fiscal 2013. Sales will continue to be reported quarterly, along with earnings and cash flow.
The retailer posted net income of $145 million for the quarter ended Oct. 27, up from $139 million a year earlier. Sales in the third quarter rose 3.8% to $6.075 billion, from total sales of $5.853 billion in third quarter 2011. Same-store sales were up 3.7%.
“We were pleased to deliver sales and earnings growth for the 11th consecutive quarter,” said Terry J. Lundgren, chairman, president and CEO of Macy’s. “Our success in the third quarter reflected a combination of factors, as has been the case over the past several years. We continue to implement our My Macy’s localization, omnichannel integration and enhanced customer engagement strategies with increasing precision, passion and success.”
Lundgren expressed confidence about sales and profit growth in the holiday quarter despite the impact of Hurricane Sandy. The chain also said that nearly one quarter of its stores suffered a disruption of some sort last week due to the hurricane.
“We have confidence in our ability to continue to grow sales and earnings in the fourth quarter, even taking into account a recovery from Hurricane Sandy that will cause stress to consumers and our employees in the Northeast and Mid-Atlantic regions," said Lundgren.
Online sales (Macys.com and Bloomingdales.com combined) were up 40.4% in the third quarter and 36.8% year to date, compared with the same periods in 2011.
In the third quarter, the company opened new Bloomingdale’s Outlet stores, as previously announced, in Westbury, N.Y., and Grand Prairie, Texas. A third Bloomingdale’s Outlet store, in Livermore, Calif., is opening in the second week of the fourth quarter.