Macy's Net Soars 64 Percent in Second Quarter
CINCINNATI-In what Terry Lundgren, chairman, president and CEO, called the company's "most successful second quarter and spring season in more than a decade," Macy's bulked its bottom line by 64 percent, to $241 million, in the quarter, which ended on July 30.
A healthy net sales gain of 7.3 percent, to $5.9 billion (which included a same-store sales gain of 6.4 percent), and a close eye on expenses helped fuel the gain in net income. Selling, general and administrative expenses, while edging up 1.2 percent in dollars, dropped 190 basis points as a percentage of sales to 33.3 percent.
In addition, Macy's shed 15 percent off its interest expenses in the quarter. Gross margin, meanwhile, fell 10 basis points to 41.8 percent.
"To date this year, we have driven significant additional sales growth, gained market share, maintained strong margins, managed expenses and generated a very healthy level of cash," Lundgren said.
The company said it expects same-store sales in the third quarter to rise by from 4 percent to 4.5 percent, and for the year, it is projecting a gain in comp-store sales of 4.8 percent to 5.1 percent. "As we continue to closely monitor developments in the economy and financial markets, we are cautious but optimistic about this fall and are staying focused on those factors we can control," Lundgren said.