Macy's Net Climbs 22.1 Percent in Q3
CINCINNATI--A bump-up in sales combined with effective controls on expenses to boost Macy's third-quarter bottom line by 22.1 percent, to $177 million.
Net sales increased by 3.3 percent to $6.3 billion, including a 3.5 percent gain in same-store sales, in what Terry Lundgren, Macy's chairman, president and CEO, characterized as "a very successful third quarter ... despite the tepid economic climate. Our improved sales performance resulted from continued success in the execution of our key strategies--My Macy's localization, omnichannel integration and Magic Selling customer engagement. In addition, business in the third quarter benefited from intensified marketing strategies to emphasize the outstanding value in our merchandise deliveries."
Selling, general and administrative expenses, while increasing 1 percent in dollars, fell back 70 basis points as a percentage of sales to 33.5 percent. Interest expense was shaved by 6.8 percent. Gross margin, meanwhile, slipped 40 basis points to 39.2 percent.
Commenting the fourth quarter, Lundgren said Macy's holiday-season business will be driven by "a wide selection of the most exclusive products from the most-wanted brands and designers. We will bring them to our customers, whether they shop in our stores, online, via mobile or all three. The values we offer will be appealing."