CINCINNATI–Macy’s, Inc. reported a first quarter net loss fueled in part by costs from consolidating three divisions, with home pulling in mixed results, Karen Hoguet, chief financial officer, said during a conference call.
The retailer posted a net loss of $59 million, compared with net income of $36 million in the year ago quarter.
The net loss included $87 million in costs from consolidating three divisions. In February, Macy’s set plans to consolidate Macy’s North, Macy’s Midwest and Macy’s Northwest into Macy’s East, Macy’s South and Macy’s West.
Sales fell 2.9 percent to $5.74 billion. Same-store sales slipped 2.6 percent.
Housewares and mattresses were two of the strongest performing businesses of all product categories, while home textiles was one of the weakest, Hoguet said. “In total, home was okay.”
The exclusive Martha Stewart home collection, which launched this fall, has done “very well ... and we’re making it even better this year,” she said.
The retailer was pleased with its performance in light of the tough economic environment, Hoguet said, as comp-store sales outpaced many of its competitors.
Last week, Macy’s named company veteran Dan Edelman to explore international opportunities for both the Bloomingdale’s and Macy’s brands. But the retailer doesn’t expect to make any global expansion announcements soon, Hoguet said.
Hoguet also said the retailer met with 750 of its vendors to educate them on My Macy’s, its recent initiative to localize its store assortments.
My Macy’s was announced in conjunction with the plan to consolidate the divisions in February.
Macy’s will open three stores in Phoenix over the next few years and a two-level lifestyle store in Las Vegas. The Las Vegas store reflects an opportunity for Macy’s to expand into lifestyle centers as opposed to traditional malls, fewer of which are being built these days, Hoguet said.