Macy's Net Jumps 11.7 Percent in Q4, 48 Percent for the Year
CINCINNATI-Macy's ended another healthy fiscal year with an 11.7 percent increase in fourth-quarter net income, to $745 million. That performance boosted Macy's bottom line for the fiscal year as a whole by 48 percent, to $1.3 billion.
A company statement described the fiscal year, which ended on Jan. 28, as the third straight year of significantly improved financial performance. "We have more than doubled our earnings over the past three years driven by innovative strategic initiatives that are being executed with discipline at both Macy's and Bloomingdale's," said Terry Lundgren, Macy's chairman, president and CEO.
Net sales in the quarter rose 5.5 percent to $8.7 billion, while for the year as a whole, sales increased 5.6 percent to $26.4 billion. Macy's same-store sales climbed 5.2 percent in the quarter and 5.3 percent for the year.
The bottom line was helped by a 60-basis-point drop in selling, general and administrative expenses as a percentage of sales, to 26.6 percent. On a dollar basis, SG&A rose 3.1 percent. Gross margin slipped 30 basis points to 41 percent.
For fiscal 2012, Macy's said it expects same-store sales growth of about 3.5 percent. Lundgren said this year will be "another exciting year" for Macy's, and added that the company is projecting its online sales to exceed $2 billion this year.