Show Entire Article
Macy's Inc. posted a second-quarter profit and beat Wall Street expectations even as the department store chain's results were weighed down by costs for consolidations and store closings.
The Cincinnati-based chain said Wednesday it is boosting its profit outlook as it benefits from the cost-cutting.
Macy's earned $7 million, or 2 cents per share, in the quarter ended Aug. 1. That compares with $73 million, or 17 cents per share, in same period last year.
But excluding restructuring charges of $34 million, or 18 cents per share, related to division consolidations and initiatives to localize merchandising to regional markets, the company earned 20 cents per share. That well exceeded the 15 cents projects by analysts surveyed by Thomson Reuters.
Revenues were $5.16 billion, down almost 10 percent from a year ago, slightly below analysts' forecasts of $5.18 billion. Macy's same-store sales, or sales at stores opened at least a year, were down 9.5 percent. Same-store sales are considered a key indicator of a retailer's health.
"Our unified organizational structure is settling in and working well," said Terry J. Lundgren, Macy's chairman, president and chief executive, in a statement. "It has allowed us to streamline decision-making and build closer relationship with our key vendor resources."
Page 1 of 2 | Next PageShow Entire Article
More Top Stories