Early indications of traffic and sales on Black Friday are pointing to "very good signs" to the holiday shopping season, according to CEO Terry Lundgren in an interview, adding that more than 5,000 customers waited outside of Macy's flagship store on 34th street in New York before it opened at 5 AM. Heavy marketing spending devoted to Black Friday 2009 has contributed to its relative success at attracting value-conscious customers.
For Q3 2010, ended October 31, 2009, Macy's reported a net loss of $35 million, or $0.08/share, compared to a loss of $44 million from the same period last year. The retail department store chain continues to be hurt by lowered consumer demand for non-essential purchases and forecasted a mean outlook for the upcoming holiday season.
Index of manufacturing activity rose by 2.7 percent in May. The sector is still contracting but at a slower rate. The increase was above analyst expectations and led investors to hope the economy is turning around.
Despite decreasing same-store sales and Macy's announcing plans to lay off workers, Goldman upgraded the stock from "hold" to "buy" due to the company's strong national product offering, a localized offering known as "My Macy's" meant to more effectively target customers in different regions, and the fact that the company has shown it is capable of paying off its current debt and ending the current fiscal year flush with cash.
Macy's Q4 profit decreased 59%, from $750 million ($1.73 per share) one year ago to $310 million (73 cents per share). Restructuring expenses and price discounts are largely responsible for the drop in the company's net income.
Macy's, Inc. has lowered its full year sales and earnings guidance after third quarter sales look set to be lower than expected. Macys Inc. said that "in light of the weakening economic environment and consumer confidence," it now expects earnings per share on a diluted basis of approximately $1.30 to $1.50 for fiscal 2008. Previous guidance was for earnings of $1.70 to $1.85 per diluted share.
Macy's reported its FY2008 Q2 earnings and while earnings were above analyst expectation but sales were just above $5.70 billion as opposed to expectations of $5.75 billion.
The Cincinnati-based retailer said it will immediately begin consolidating its Minneapolis-based Macy's North headquarters into its New York-based Macy's East, its St. Louis-based Macy's Midwest organization into its Atlanta-based Macy's South and its Seattle-based Macy's Northwest headquarters into its San Francisco-based Macy's West.
The consolidation of the office organizations expected to be completed in the second quarter of 2008 will affect 950 positions at Macy's North, 850 positions at Macy's Midwest and 750 positions at Macy's Northwest in Seattle.
Despite third-quarter profits (attributed to lower May-merger integration costs), the announcement of lower earnings guidance for the fourth quarter, a delay in share repurchases, and persisting downwards trend within the retail industry caused stock to drop 7%.
Stocks rise after Macy's announces its agreement with well-known brand Tommy Hilfiger USA to be the sole retail carrier of its mens' and womens' sportswear.
Rumors of a Macy's takeover, perhaps by Kohlberg Kravis Roberts & Co., sent stocks to their highest for two weeks.
