Macy's Inc. sees 3Q improvement, raises outlook
CINCINNATI Macy’s Inc. reported that earnings were 2 cents per diluted share for the third quarter of 2010, ended Oct. 30. This compares with a loss of 8 cents per share in last year’s third quarter.
“Throughout 2010, we have gained confidence and momentum as customers have responded favorably to our execution of key strategies developed and activated over the past few years. This bodes well for our business as we enter the holiday selling season with a differentiated and tailored merchandise offering, compelling marketing, and an energized organization of store associates focused on engaging customers,” said Terry Lundgren, chairman, president and chief executive officer of Macy’s Inc.
Sales in the third quarter totaled $5.623 billion, up 6.6% from total sales of $5.277 billion in the third quarter of 2010. On a same-store basis, Macy’s Inc.’s third-quarter sales were up 3.9%.
The company’s guidance is for same-store sales in the fourth quarter of 2010 to be up 3% to 4%. This translates to same-store sales for the second half of 2010 to be up 3.3% to 4%, compared with previous guidance (provided in August) of up 3% to 3.5%.
Based on stronger sales expectations, Macy’s Inc. said it increased its earnings guidance for the second half of 2010 to $1.50 to $1.55 per diluted share, excluding expenses associated with the early retirement of debt in the third quarter. This compares with previous guidance (provided in August) of $1.45 to $1.50 per diluted share for the second half of 2010. For the full-year 2010, earnings guidance is $1.94 to $1.99 per diluted share, compared with previous guidance of $1.89 to $1.94, excluding expenses associated with the early retirement of debt.