• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Macy's delivers strong second quarter earnings

14 Aug '08
6 min read

Sales:
Sales in the second quarter totaled $5.718 billion, a decrease of 3.0 percent compared with sales of $5.892 billion in the same period last year. On a same-store basis, Macy's, Inc.'s second quarter sales were down 2.1 percent.

For the year to date, Macy's, Inc.'s sales totaled $11.465 billion, down 2.9 percent from total sales of $11.813 billion in the first 26 weeks of 2007. On a same-store basis, Macy's, Inc.'s year-to-date sales were down 2.2 percent.

In the second quarter of 2008, the company opened a new Macy's store in Houston, TX.

Operating Income:
Macy's Inc's operating income totaled $259 million or 4.5 percent of sales for the quarter ended Aug. 2, 2008, compared with operating income of $250 million or 4.2 percent of sales for the same period last year. Macy's, Inc.'s second quarter 2008 operating income included $26 million in division consolidation costs and $50 million in asset impairment charges.

Excluding these items, operating income for the second quarter of 2008 was $335 million or 5.9 percent of sales. Second quarter 2007 operating income included $97 million in May Company integration costs. Excluding these costs, operating income for the second quarter of 2007 was $347 million or 5.9 percent of sales.

For the first half of 2008, Macy's, Inc.'s operating income totaled $289 million or 2.5 percent of sales, compared to operating income of $458 million or 3.9 percent of sales for the same period last year. Macy's, Inc.'s first half 2008 operating income includes $113 million in division consolidation costs and $50 million in asset impairment charges.

Excluding these items, operating income in the first half of 2008 was $452 million or 3.9 percent of sales. Macy's, Inc.'s first half 2007 operating income was $591 million or 5.0 percent of sales, excluding $133 million in May Company integration costs.

Cash Flow:
Net cash provided by continuing operating activities was $592 million in the first half of 2008, compared with $412 million in the first half of last year. Net cash used by continuing investing activities in the first half of 2008 was $312 million, compared with $315 million a year ago. In the first half of 2007, net cash used by continuing investing activities included $66 million in proceeds from the disposition of the After Hours formalwear business.

Net cash provided by continuing financing activities was $430 million in the first half of 2008, compared with cash used by continuing financing activities of $1.058 billion in the first half last year. In the second quarter of 2008, Macy's, Inc. issued $650 million in senior notes, the proceeds from which will be used to pay amounts due on $650 million in senior notes that mature in the second half of 2008.

The company repurchased no shares of its common stock in the second quarter of 2008 and anticipates no share repurchases for the remainder of fiscal 2008. At August 2, 2008, the company had remaining authorization to repurchase up to approximately $850 million of its common stock.

Looking Ahead:
The performance of the economy and level of consumer confidence will have an important bearing on retail sales in the second half of 2008, and thus it is difficult to forecast future results with any level of certainty. Macy's, Inc. currently expects same-store sales in the fall season to be flat to down 1 percent, which would result in fiscal 2008 same-store sales of down 1 percent to down 1.6 percent.

The company currently expects earnings per share on a diluted basis of approximately $1.70 to $1.85 for fiscal 2008 as a whole, excluding one-time division consolidation costs and impairment charges. The company expects to book approximately $35 million in division consolidation costs in the final half of 2008.

Macy's Inc

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search