Macy’s Inc. (M), the operator of departmental stores, recently reported third-quarter 2009 results. The company posted a loss of 3 cents a share that outshined the Zacks Consensus Estimate loss of 9 cents, and improved substantially from a loss of 8 cents delivered in the prior-year quarter.

Effective inventory management and division consolidation to lower costs helped the company to post a narrower quarterly loss.

The better-than-expected results prompted management to raise its earnings guidance. Macy’s now expects full year 2009 earnings in the range of $1.01 to $1.06 per share, up from the previously anticipated 70 cents to 80 cents a share. For the fourth-quarter 2009, earnings are expected between $1.00 and $1.05 per share.

On a reported basis Incorporatedluding one-time items, Macy’s reported a quarterly loss of 8 cents a share, an improvement over a loss of 10 cents delivered in the year-ago quarter.

Total sales for the quarter tumbled 3.9% year-on-year to $5,277 million, reflecting a comparable-store sales decline of 3.6%. Management expects comps to fall between 1% and 2% in the fourth quarter.

Macy’s, however, improved its full year comparable-store sales outlook, and now expects it to drop in the range of 5.4% to 5.7%, as opposed to a 6% to 8% fall forecasted earlier.

Online sales, which include macys.com and bloomingdales.com, jumped 21.1%, favorably impacting comps by 0.6%.

The fall in the top-line was offset by a 5.1% decline in cost of sales to $3,156 million, which helped expand gross margin by 70 basis points (bps) to 40.2%. Excluding one-time items, operating income for the quarter climbed 4.8% to $88 million, whereas operating margin expanded by 20 bps to 1.7%.

Zacks Investment Research

1. (HLS) HealthSouth Corporation – Raises Earnings GuidanceHealthSouth Corp. (HLS) is producing strong results by growing its revenue and more effectively managing...
2. (KFT) Kraft Foods Beats Earnings Forecasts – Raises GuidanceKraft Foods (KFT) reported strong second-quarter results with earnings of 55 cents per share, above...
3. (DTE) DTE Energy Company Raises Earnings GuidanceDTE Energy Company (DTE) yesterday raised 2009 earnings guidance boosted by strong performance. The company...
4. (M) Macy’s September Sales DipMacy’s Inc. (M), the operator of department stores, recently reported a 2.4% decline in total...
5. (M) Macy’s Beats, Raises Outlook – effective cost management and inventory-control measuresMacy’s Inc. (M) reported better-than-expected second quarter results amid recession due to effective cost management...
6. ($K) Kellogg Beats; Raises Guidance – Earnings were $0.10 above Consensus EstimateKellogg Co. (K) reported strong second-quarter results with earnings of $0.92 per share. Earnings were...

Search Posts by Tag: M | Macy's | Department Stores | Services

RSS Feeds by Tag: M | Macy's | Department Stores | Services |

Other Posts by: vitalstocks | RSS Feed for this author