Macy’s Raises Outlook

Macy’s Inc. (M - Analyst Report) raised its earnings guidance for the fourth quarter and fiscal 2009, buoyed by better-than-expected sales and effective cost management.
 
Macy’s now expects fourth-quarter earnings in the range of $1.35 to $1.37 per share, up from its prior view of $1.14 to $1.18. For fiscal 2009, management expects earnings between $1.36 and $1.38 per share, up from an earlier projection of $1.15 to $1.19.
 
For fourth quarter 2009, Macy’s sales dropped 1% to $7,851 million from $7,934 million. The company’s comparable-store sales for the quarter fell 0.8%. The company had earlier forecasted a drop in sales in the range of 1% to 2%.
 
Macy’s has been taking steps to increase sales, profitability and cash flow, which will put it on the growth trajectory once the economy rebounds. These include integration of operations, consolidation of divisions and customer-centric localization initiatives.
 
Total sales for the four-week period ended Jan 30, 2010 climbed 3.4% to $1,255 million from $1,213 million posted in the same month last year. Comparable-store sales for January also jumped 3.4%.
 
For fiscal year 2009, total sales dipped 5.6% to $23,491 million from $24,892 in fiscal year 2008. Comparable-store sales fell 5.3% for the year.
 
Online sales, which include macys.com and bloomingdales.com, sustained their growth momentum in January and jumped 23.9% for the month under review, and were up 19.6% for fiscal year 2009. For the fourth quarter, online sales were up 26.6%.
 
Macy’s department stores sell a wide range of merchandise. Macy’s products include men’s, women’s, and children’s apparel and accessories; cosmetics; home furnishings and other consumer goods.
 
Macy’s currently operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.

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