May Department Stores 2Q Profit Tumbles
St. Louis, May Department Stores Co.’s second-quarter profit fell by nearly half from the year before, hurt by expenses from its planned sale to Federated Department Stores.
Quarterly income dropped to $52 million, or 16? a share, from $101 million, or 33? a share, a year ago. Merger-related costs amounted to about 13? a share, while divesting stores and a lowered tax reserve boosted earnings by about 8?.
Net sales totaled $3.45 billion for the quarter, up 17% from a year earlier. Same-store sales were down 1.6%.
May said its inventories are well-positioned going into the fall season.