Macy’s reports 20 percent jump in first quarter profit
by Associated Press Wire
June 03, 2013 12:00 AM | 1354 views | 0 0 comments | 9 9 recommendations | email to a friend | print

Macy's Inc. reported a 20 percent increase in first-quarter profit, even though cool temperatures and economic worries dampened some of its shoppers' spending on spring clothes.

Macy’s has stores in Cobb County, including at Cumberland Mall and Town Center Mall.

The company also operates the upscale chain Bloomingdale's.

Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report first-quarter results that should provide insight into Americans' mindset heading into the summer season. The latest results show that while the job market is improving and housing market is recovering, Macy's and others that cater to middle-income shoppers still face hurdles.

"We are especially pleased with our first-quarter sales and earnings performance given the challenges we overcame in this period," Terry Lundgren, chairman, president and CEO of Macy's, said in a statement.

Like many clothing retailers, Macy's grappled with cool spring weather that lingered into April. But Lundgren also pointed to weak spending trends among the chain's most budget-conscious shoppers, as well as among its higher-income Bloomingdale's customers.

Macy's has been benefiting from its strategy of tailoring merchandise to local markets. The department store chain has also pulled in young shoppers by aligning with celebrities like Madonna and Jessica Simpson. But the company also said it will seek out new opportunities to get shoppers to spend. Macy's said it earned $217 million, or 55 cents per share in the quarter ended May 4.

That compares with $181 million, or 43 cents per share, a year ago. Revenue rose 4 percent to $6.38 billion.

Analysts expected earnings of 53 cents per share on revenue of $6.4 billion, according to FactSet.

Revenue at stores open at least a year rose 3.8 percent. Analysts had expected an increase of 4.3 percent.

Macy's said it expects revenue at stores open at least a year to rise 3.5 percent for the year. It also reiterated that it expects earnings per share for the full year to be in the range of $3.90 to $3.95.

Analysts had expected $3.92 per share.

The company said the dividend will be paid on July 1 to shareholders of record at the close of business on June 14.

Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, and spam will also be rejected. Please read our terms of service for full guides