Macy's Net Jumps 19.9 Percent in Q1
CINCINNATI-Increased sales and a close watch on costs helped fuel Macy's bottom line to a 19.9 percent gain, to $217 million, in its first quarter ending on May 4.
Net sales tallied $6.4 billion, up 4 percent, including a pickup of 3.8 percent in same-store sales across both Macy's and Bloomingdale's stores, which also takes in sales at the two stores' websites, macys.com and bloomingdales.com. Terry Lundgren, Macy's chairman, president and CEO, said the company managed to grow its sales in spite of unseasonably cool spring weather in its northern regions. Lundgren also observed that shoppers at both stores were highly conscious of their budgets in the quarter, including the higher-income Bloomingdale's customers.
Gross margin in the quarter remained flat at 38.8 percent. Selling, general and administrative expenses edged up 2.3 percent in dollars but shed 40 basis points as a percentage of sales, finishing the quarter at 32 percent. Interest expense fell 13.4 percent.
Going forward, Macy's is projecting an approximate 3.5 percent increase in same-store sales for the remainder of the year. "We are continuing to pursue myriad new growth opportunities within our time-tested M.O.M. strategies (My Macy's, Omnichannel and Magic Selling)," Lundgren said. "These strategies continue to work individually--and in unison--at Macy's to meet the needs of customers seeking fashion, quality, value and convenience."