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Macy’s Narrows Loss, Posts Negative Comp Sales

Macy’s today announced that its had narrowed its losses, from 10 cents a share in last year’s third quarter to 8 cents per share in this year’s third quarter. However, for the first three quarters of 2009, the nation’s largest department store operator reported a loss of 27 cents per diluted share, compared with a loss of 7 cents per diluted share in the same period in 2008.
“Given the difficult economic climate, we had an excellent quarter. Our business improved progressively each month during the period and we are entering the holiday selling season confident in our locally-focused organizational structure and the high caliber of our talent,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer, in a prepared statement.
Sales in the third quarter totaled $5.277 billion, down 3.9 percent from total sales of $5.493 billion in the third quarter of 2008. On a same-store basis, Macy’s, Inc.’s third quarter sales were down 3.6%.
For the year to date, Macy’s, Inc.’s sales totaled $15.640 billion, down 7.8% from total sales of $16.958 billion in the first 39 weeks of 2008. On a same-store basis, Macy’s, Inc.’s year-to-date sales were down 7.5%.
Online sales (macys.com and bloomingdales.com combined) were up 21.1% in the third quarter this year and 15.6 percent for the year to date. Online sales positively affected the company’s same-store sales by 0.6 percentage points in the third quarter and 0.5 percentage points in the year to date. Online sales are included in the same-store sales calculation for Macy’s, Inc.
“We continue to see encouraging results from our My Macy’s approach to local markets. Of our Top 10 districts in same-store sales in the third quarter, seven were among the original My Macy’s pilot districts,” Lundgren said. “Other bright spots in the third quarter included a strong sales performance at Bloomingdale’s and outstanding growth in our Internet businesses, which are being fueled by the ongoing multi-channel integration at both Macy’s and Bloomingdale’s.”
For the first three quarters of 2009, Macy’s, Inc. reported a loss of 27 cents per diluted share, compared with a loss of 7 cents per diluted share in the same period in 2008. Excluding restructuring-related costs of $205 million ($120 million after tax; 28 cents per diluted share), earnings were 1 cent per diluted share in 2009 to date. In the first three quarters of 2008, diluted earnings per share were 20 cents, excluding restructuring-related costs of $129 million ($81 million after tax; 19 cents per diluted share) and asset impairment charges of $50 million ($31 million after tax; 8 cents per diluted share).