More stores in Macy's pipeline, 3Q comps up 4%
CINCINNATI — Macy's Inc. reported that earnings were 32 cents per diluted share for the third quarter of 2011, ended Oct. 29, compared with earnings of 2 cents per diluted share in last year's third quarter, or 8 cents per diluted share in last year's third quarter excluding expenses of 6 cents per share associated with the repurchase of debt.
"A number of factors contributed to this excellent third quarter performance. We continue to move forward in the execution of those strategies that have created a culture of growth at Macy's - including My Macy's localization of our assortments and shopping experience; omnichannel integration across stores, online and mobile; and MAGIC Selling and associate coaching programs to strengthen customer engagement. Bloomingdale's also enjoyed a strong quarter, both in stores and online, as customers have continued to respond to bridge and designer merchandise. In addition, third quarter results benefitted from a strong credit performance due to improved portfolio quality," said Terry Lundgren, chairman, president and CEO of Macy's Inc.
The company reported that sales for the third quarter increased 4.1% to $5.85 billion from total sales of $5.62 billion in the third quarter of 2010. Same-store sales were up 4%.
For the fourth quarter, Macy's said it expects same-store sales to be up 4% to 4.5%. This translates to same-store sales for the second half of 2011 to be up 4% to 4.3%, and full-year same-store sales to be up between 4.8% and 5%. This compares with guidance provided at the beginning of the year for 2011 same-store sales to be up by approximately 3%.
Macy's Inc. said it is increasing its full-year 2011 earnings guidance to $2.70 to $2.75 per diluted share, including fourth quarter earnings guidance of $1.52 to $1.57 per diluted share. Previous 2011 full-year guidance was for earnings of $2.60 to $2.65 per share, and compares with initial guidance of $2.25 to $2.30 per diluted share provided at the beginning of the year.
Macy's Inc. operates about 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdales. That number is set to increase, as the company announced plans to to open three new Macy's stores in the Bronx borough of New York City, Bay Shore, N.Y. and Victorville, Calif.
The Bronx location will be a three-level, 160,000 sq. ft. store inside the Mall at Bay Plaza. It is expected to open in fall 2013 or spring 2014. This will be Macy's second store in The Bronx (joining Parkchester), and its first new location within New York City since Queens Center was opened in 1995.
The planned two-level 200,000 sq. ft. Macy' in Bay Shore will replace the existing Macy's at the South Shore mall and is expected to open in fall 2013.