CINCINNATI–Macy’s reported $7 million net income for its fiscal second quarter, down 90 percent from last year’s second-quarter.
Net sales for the department-store retailer totaled $5.2 billion, off 9.7 percent from last year—which included a 9.5 percent drop in same-store sales. Macy’s chopped 8.6 percent from its selling, general and administrative expenses and 9.7 percent from its cost of sales. But these were offset by a more than doubling in the company’s income-tax expense and rises in other expense categories.
Despite the drop in earnings, Terry Lundgren, chairman, president and chief executive officer of Macy’s, said the retailer exceeded expectations for net income and cash flow in the second quarter. In a company statement, Lundgren said Macy’s new organization structure is settled in and “has allowed us to streamline decision making and build closer relationships with our key vendor resources.”