Macy's Net Grows 16 Percent in Second Quarter
CINCINNATI-A wary eye on expenses combined with a sales gain to boost Macy's net income by 15.8 percent in the second quarter, to $279 million.
Net sales in the quarter, which ended on July 28, rose 3 percent to $6.1 billion, which included a 3 percent increase in same-store sales. The pickup at the cash registers also included a 36.1 percent jump in online sales, encompassing both macys.com and bloomingdales.com.
Gross margin rose 10 basis points to 41.9 percent. Selling, general and administrative expenses were up 1.7 percent on a dollar basis, but down 50 basis points as a percentage of sales to 32.8 percent.
Terry Lundgren, Macy's chairman, president and CEO, said the company was able to post positive results in the second quarter despite the soft economy, reduced spending by international tourists and disruptions associated with the remodeling of the Macy's Herald Square flagship store in New York City. "In response to these challenges," Lundgren said, "we have stayed very firmly focused on driving profitable sales growth while running the business with discipline to maintain margins and manage expenses."
Lundgren added that Macy's is entering the fall season prepared with brand-driven merchandise for gift giving and self-purchase. "Meanwhile, we will continue to maintain our expense discipline, especially in those areas that are not readily apparent to the customer," he said.