Home / Knowledge / News / Macy's updates business performance & 2008 guidance
Macy's updates business performance & 2008 guidance
Oct '08
Macy's Inc provided additional information on the company's business performance and updated its 2008 sales and earnings guidance in light of the weakening economic environment and consumer confidence. The company noted that with the uncertain direction of the economy, predictions of future performance remain difficult.

• Macy's Inc has continued to out-perform most of its major competitors in same-store sales, even as sales have declined on a year-over-year basis. In the 2008 third quarter to date (August and September combined), same-store sales at Macy's Inc declined by 5.8 percent, which represents a weakening from earlier periods in the year. For the year to date (eight months of 2008 through September), same-store sales declined by 3.2 percent. If weaker sales trends continue, same-store sales in the fall season could be down by 3 to 6 percent. (Previous guidance was for fall season same-store sales to be flat to down 1 percent.)

• Based on the potential for lower sales, the company's guidance now is for earnings per share on a diluted basis of approximately $1.30 to $1.50 for fiscal 2008 as a whole, excluding one-time division consolidation costs and impairment charges. Previous guidance was for earnings of $1.70 to $1.85 per diluted share, excluding division consolidation costs and impairment charges.

• The company continues to be financially healthy and year-to-date cash flow is stronger than anticipated at the beginning of the year, despite lower sales. Through a combination of initiatives - including the previously announced suspension of Macy's Inc's share repurchase program, reduced capital spending and disciplined management of inventories and expenses - the company's need for cash has been reduced. The company had approximately $740 million in cash and cash equivalents at the end of September. The company expects to fulfill additional working capital needs through borrowings from its existing $2 billion bank credit agreement, led by Bank of America and J.P. Morgan, which is committed through August 2012. There are currently no borrowings under this credit agreement.

"We are continuing to manage our business well in this tough economic environment, while simultaneously offering customers exciting fashion product and great value. We expect this will result in sales performance that continues to outpace key competitors, as we have done throughout the year-to-date period," said Terry J. Lundgren, chairman, president and chief executive officer of Macy's Inc.

"We have a strong and experienced organization that is committed to maximizing performance through the upcoming holiday season, and to continue to implement the My Macy's localization initiative that we believe will position us well in 2009 and beyond."

Macy's Inc

Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search