360° Coverage : Macy's Profit Grows As Snow Weighs On January Sales

2 Updates
Macy's Profit Grows As Snow Weighs On January Sales
Photo Credit: Forbes Business

Macy's Profit Grows As Snow Weighs On January Sales

Feb 25 2014, 8:52am CST | by

The polar vortex strikes again. Its newest victim: Macy’s fourth quarter revenue, which dropped 1.6% compared to the same time in 2012 thanks to a fall in comparable store sales during the snowy...

Filed under: news

 
 
 

29 weeks ago

Macy's Profit Grows As Snow Weighs On January Sales

Feb 25 2014, 8:52am CST | by

The polar vortex strikes again. Its newest victim: Macy’s fourth quarter revenue, which dropped 1.6% compared to the same time in 2012 thanks to a fall in comparable store sales during the snowy month of January.

Macy’s reported $9.2 billion in fourth quarter revenue, a decline over the $9.35 billion reported the same time last year and just a hair under the $9.28 billion the Street was expecting. Though the quarter was one week shorter than in 2012 (13 weeks in 2013 against 14 weeks in 2012), Macy’s noted that comparable store sales grew 3.6% in November and December, but by the end of January, that comparable sales figure fell to 1.4%, almost entirely because of the weather.

While we had expected a sales decline in January because of the calendar shift, the month was down further than we had expected and we are very disappointed with sales performance in January. In part, poor January sales were due to the unusually harsh winter weather across much of the country,” Terry Lundgren, Macy’s chairman, president and CEO said in a statement Tuesday morning. Lundgren noted that at one time or another in January, 244 Macy’s and Bloomingdale’s stores were closed because of the weather, and business “remained sluggish” through Valentine’s Day.

“Once warm spring weather arrives and our full assortment of fresh spring merchandise is in place, we believe customers will return to a more normalized pattern of shopping,” he said. “But based on our experience in January and early February, we are watching business trends closely.”

The retailer’s fourth quarter net income grew to $811 million, up from $730 million in the prior-year quarter, resulting in earnings of $2.16 per share, including special items like tax expenses and asset impairment charges. Excluding those items, fourth quarter profit came in at $2.31 per share, well above analyst estimates of $2.17 per share.

On a full year basis, Macy’s revenue increased incrementally, coming in at $29.93 billion against the $29.69 billion reported for full-year 2012. Full-year comparable sales were up 1.9%, and full-year net income was $1.49 billion, an increase compared to the $1.34 billion reported in 2012. This resulted in full-year earnings of $3.86 per share, including special items (like taxes and that asset impairment charge); excluding special items, full-year profit was $4 per share.

Looking ahead to 2014, Macy’s reiterated the sales guidance it issued in January, saying that comparable sales are expected to grow between 2.5% and 3%, and full-year earnings per share will fall between $4.40 and $4.50. Macy’s did not reference the 2,500 job cuts it also announced in January, reiterating only that it has plans for new Macy’s stores in Sarasota, FL., Las Vegas and the Bronx.

Shares of Macy’s initially fell more than 2% in Tuesday’s pre-market activity, likely because of the bad news about January sales. Year-over-year, the stock is up 37.8%, and in a research note issued last week by Citi Research analyst Oliver Chen, the stock still has room to grow. Chen rated Macy’s as a buy and gave it a $63 price target – $10 higher than its Monday closing price – and said that not only does Macy’s have the best brand portfolio and a strong omni-channel approach (like its ship-to-store and ship-from-store delivery options), it also has a strong chance of success with the ever-elusive but much-desired Millennial contingent.

“Since 2012 Macy’s has applied a tailored approach to attract the lucrative Millennial customer, with the launch of Impulse and mstylelab,” Chen said. “We are anticipating big expansions in Millennial brands, which we believe will attract new junior and young adult customers.”

Related from Forbes:

10 Secrets You Didn't Know About Macy's

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the wor ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedie ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Ebola hit countries to lose $809 million by 2015: World Bank
This projected loss will be the medium-term impact of the outbreak of the Ebola Virus Disease (EVD) on these countries, Xinhua reported.
 
 
Russian food ban deals blow to Austrian pork farmers
Vienna, Sep 19 (IANS) Russian import ban imposed in retaliation for Western sanctions over the Ukraine crisis brought down the price of pork in Austria, affecting the farmers in the country.
 
 
Russia seeks to keep out foreigners from media business
Moscow, Sep 18 (IANS) Russia will soon introduce a bill in parliament to restrict foreign ownership in Russian media, a media report said Thursday.
 
 
France to help set up hospital in Guinea to fight Ebola
Paris, Sep 18 (IANS) French President Francois Hollande Thursday said his country would help set up a military hospital in Guinea to assist in the fight against the deadly Ebola virus in west Africa.
 
 
 

Latest from the Network

13 killed in bomb attacks in Iraq
Baghdad, Sep 19 (IANS) At least 13 people were killed in two suicide bomb attacks in the Iraqi capital of Baghdad Thursday evening, a police source said. A suicide bomber drove an explosive-laden car into a checkpoint...
Read more on Politics Balla
 
Scottish referendum polls end, huge turnout reported
London, Sep 19 (IANS) Polling in the referendum to decide whether Scotland should stay in the UK or become an independent country have closed and counting is under way, BBC reported. Counting will be carried out...
Read more on Politics Balla
 
Parliamentarians urges EU to cut off IS resources
Brussels, Sep 19 (IANS) The European Parliament Thursday urged the European Union (EU) to enforce sanctions against business bodies related to the Islamic State (IS) in a bid to cut off its resources. The creation and...
Read more on Politics Balla
 
Sharon Osbourne slit her wrist to prove love
Los Angeles, Sep 19 (IANS) TV host Sharon Osbourne says, back in her rocker girl days, she slit her wrist to prove her love for Ozzy Osbourne. The 61-year-old star has revealed she was hospitalised after cutting...
Read more on Celebrity Balla
 
Ebola hit countries to lose $809 million by 2015: World Bank
This projected loss will be the medium-term impact of the outbreak of the Ebola Virus Disease (EVD) on these countries, Xinhua reported. A statement issued from the World Bank's Ghana office responsible for both...
Read more on Business Balla
 
Russian food ban deals blow to Austrian pork farmers
Vienna, Sep 19 (IANS) Russian import ban imposed in retaliation for Western sanctions over the Ukraine crisis brought down the price of pork in Austria, affecting the farmers in the country. Alarm is growing among...
Read more on Business Balla
 
Nigerian troops capture Boko Haram leader
Abuja, Sep 19 (IANS) Nigeria army have arrested a senior commander of the Boko Haram sect, which is blamed for killing hundreds of people since 2009, the country's defence authority said Thursday. The commander, whose...
Read more on Politics Balla
 
Iggy Azalea sues ex-boyfriend
Los Angeles, Sep 19 (IANS) Rapper Iggy Azalea has filed a lawsuit against her ex-boyfriend. Azalea is suing her ex-lover Maurice Williams for releasing music from her early career without her consent, reports...
Read more on Celebrity Balla
 
Will Smith and Jada Pinkett Smith have garden dates
Will Smith and Jada Pinkett Smith prefer to have date nights at home. The couple, who got married in 1997, believe it's important to spend some time alone with one another in order to keep their romance alive, but they...
Read more on Celebrity Balla
 
Kylie Jenner 'living in shadows' of sister Kendall
Kylie Jenner reportedly feels she's ''living in the shadows'' of her sister Kendall. The 17-year-old star is allegedly starting to feel left out following her older sibling's recent modeling success and believes she's...
Read more on Celebrity Balla