Macy's Net Jumps in Third Quarter
CINCINNATI-An uptick in sales along with strong expense controls boosted Macy's bottom line by an impressive 1,290 percent in its fiscal third quarter, to $139 million.
The department store retailer's net sales rose 4.1 percent in the quarter, to $5.9 billion, including a 4 percent gain in same-store sales. Terry Lundgren, chairman, president and CEO, cited the My Macy's localization of store assortments; multichannel integration between stores, online and mobile; and its MAGIC selling and associate coaching programs for providing the booster to sales and increases in market share. Macy's online portals, macys.com and bloomingdales.com, provided a combined 39.8 percent sales increase in the quarter, which ended on Oct. 29.
In terms of expenses, Macy's shed 2.5 percent in dollars and 250 basis points as a percentage of sales from selling, general and administrative expenses, to 34.4 percent. The company also reduced interest expense by 34 percent. Gross margin dropped 60 basis points to 39.4 percent.
Macy's is expecting a fourth-quarter same-store sales gain of from 4 to 4.5 percent for the fourth quarter. Lundgren said the "momentum and confidence that has been building at Macy's since our organizational changes in 2009" will provide further momentum for market-share increases in the fourth quarter and into 2012.