Macy’s Inc reported sales in the second quarter of 2014 totaled $6.267 billion, up 3.3% from total sales of $6.066 billion in the second quarter of 2013. The company’s second quarter ended on August 2. Comparable sales together with comparable sales of departments licensed to third parties were up 4% as compared with Q2 2013. Second quarter comp sales rose 3.4%.
Earnings for the retailer reached 80 cents per diluted share in Q2, representing an increase of 11% in earnings per diluted share from 72 cents in the second quarter of 2013.
“Our sales trend improved at both Macy’s and Bloomingdale’s in the second quarter, reflecting a rebound in shopping activity once weather patterns normalized. We also benefitted from a shift in a major Macy’s promotional event into the first two days of the quarter,” said Terry Lundgren, Macy’s chairman and CEO.
“Advancements in our M.O.M. strategies— My Macy’s localization, Omnichannel integration and Magic Selling customer engagement— continued to drive sales growth across the country. We also are very pleased by customer response to improvements at our Macy’s Herald Square flagship in New York, where we are mid-way through the third year of an unprecedented remodel project,” Lundgren continued.
For the year to date, Macy’s, Inc. sales totaled $12.546 billion, up 0.7% from total sales of $12.453 billion in the first half of 2013. Comparable sales together with comparable sales of departments licensed to third parties were up 1.5% in the first half of 2014 over 2013. Year-to-date comparable sales were up 0.8% in 2014 compared with 2013.
Macy’s, Inc.’s diluted earnings per share in the first half of 2014 were $1.40, an increase of 10% compared with earnings per diluted share of $1.27 in the first half of 2013.
Lundgren said he was approaching the second half of 2014 with optimism, yet “tempered with the reality” that consumers might still not be willing to spend more in an uncertain economic environment. “We remain focused on outperforming our competitors through innovation in omnichannel, which has added new dimensions in how consumers can shop us and how our company can satisfy customer demand. This includes a robust Buy Online Pickup in Store process, which has been rolled out to all full-line Macy’s stores nationwide so that it is fully available this fall and into the holiday shopping season. Moreover, our Millennial strategies have sharpened our merchandising and marketing to customers in the age range of 13 to 30. This has created new positive energy as our customers begin back-to-school shopping.”
In store news, in August 2014, the company closed Macy’s stores in Bradenton, FL, and York, PA. In the second half of 2014, the company is opening three new Macy’s stores in Sarasota, FL, Las Vegas, NV, and The Bronx in New York City. A new Bloomingdale’s replacement store will open in Palo Alto, CA.
Expectations for the second half of 2014 remain on track, with guidance for comparable store growth of two to three percent. However, even with an improved sales trend in the second quarter, the company was unable to make up its sales shortfall from the first quarter, according to the announcement. This calculates to expectations for a full-year 2014 comparable sales increase of 1.5 to two percent. Full-year 2014 comparable sales together with comparable sales of departments licensed to third parties now are expected to increase by two to 2.5 percent. Previous guidance was for full-year comparable sales to increase by 2.5 percent to three percent. The company continues to expect full-year 2014 earnings per diluted share in the range of $4.40 to $4.50, consistent with guidance previously provided.