May Department Stores net sales up 16.6% in Q2

10 Aug '05

4 min read

A leading online retailer The May Department Stores Company announced earnings per share and net earnings for the second quarter and first half of fiscal 2005.

For the 13 weeks ended July 30, 2005, earnings per share were 16 cents, compared with 33 cents in the similar quarter a year ago. Net earnings were $52 million, compared with net earnings of $101 million in the prior-year period.

During the 2005 second quarter, May recorded $63 million, or 13 cents per share, of expenses related to the proposed merger with Federated Department Stores Inc, including $57 million, or 12 cents per share, of accelerated stock compensation charges triggered by shareowner approval of the merger. The merger, approved in July by shareowners of both companies, is currently undergoing anti-trust review and is expected to close in the third quarter.

Second quarter 2005 earnings also include net store divestiture gains of $8 million, or 2 cents per share, and an $18 million, or 6 cents per share, income tax provision reduction recorded upon the resolution of certain tax issues. The net gain on store divestitures resulted from gains on the sale of certain stores. Second quarter 2004 earnings included store divestiture costs of $15 million, or 3 cents per share.

Despite the disappointing store-for-store sales during the 2005 second quarter, May's inventories are well-positioned going into the fall season. Overall store-for-store inventories, which exclude Marshall Field's, at the end of July are 6 percent below last year.

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