Macy's reports strong Q4 results that exceed expectations

25 Feb '10

5 min read

For the full 52 weeks of fiscal 2009, Macy's, Inc. reported diluted earnings per share of 83 cents per share. Excluding division consolidation and store closing costs of $276 million ($174 million after tax or 41 cents per diluted share) and asset impairment charges of $115 million ($73 million after tax or 17 cents per diluted share), diluted earnings per share were $1.41 for fiscal 2009.

In fiscal 2009, the company recorded $276 million, primarily in cash, in restructuring-related costs and expenses associated with the division consolidation and localization initiatives announced in February 2009 and the store closings announced in January 2010. In addition, non-cash asset impairment charges of $115 million were recorded in the fourth quarter of 2009. Initially, the company estimated $400 million in restructuring-related costs (including $30 million booked in the fourth quarter of 2008).

In the fourth quarter of 2008, Macy's, Inc. lost $11.33 per diluted share. These results included certain unusual items (described below) that negatively impacted fourth quarter earnings by $12.39 per diluted share. Excluding these items, the company earned $1.06 per diluted share in the fourth quarter of 2008.

Unusual items in the fourth quarter of 2008 included $5.382 billion ($5.083 billion after tax or $12.06 per diluted share) in goodwill impairment charge, $58 million ($36 million after tax or 9 cents per diluted share) in costs and expenses associated with division consolidations and localization initiatives announced in February 2008 and February 2009, as well as with costs and expenses associated with 11 store closings announced in January 2009, and $161 million ($102 million after tax or 24 cents per diluted share) in non-cash asset impairment charges related to store properties still in operation, store closings announced in January 2009, acquired private brand tradenames and the company's investment in The Knot.

For the full 52 weeks of fiscal 2008, Macy's, Inc. reported a loss of $11.40 per diluted share. Excluding goodwill impairment charges of $5.382 billion ($5.083 billion after tax or $12.06 per diluted share), division consolidation and store closing costs of $187 million ($118 million after tax or 28 cents per diluted share) and asset impairment charges of $211 million ($133 million after tax or 32 cents per diluted share), diluted earnings per share were $1.26 for fiscal 2008.

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Macy's Inc

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