Macy’s Q3 sales marginally down by 1.3 percent

REPORT_ Comparable sales together with comparable sales of departments licensed to third parties at Macy’s were down 0.7 percent in the third quarter of 2014 over 2013. Third quarter comparable sales exclusive of licensed businesses were down 1.4 percent in 2014 compared with 2013. Total sales in the third quarter of 2014 were 6.195 billion dollars, down 1.3 percent from total sales of 6.276 billion dollars in the third quarter of 2013.

Macy's reported that its third quarter earnings per diluted share rose by 30 percent to 61 cents in the third quarter of 2014, ended November 1, 2014. This compares with 47 cents per share in last year's third quarter. For the first three quarters of 2014, company's diluted earnings per share were 2.01 dollars, an increase of 15 percent compared with earnings of 1.74 dollars per diluted share in the first three quarters of 2013.

“We are very pleased with our third quarter earnings, even though the sales performance fell short of our expectations. On a two-year basis, our third quarter sales trend was essentially unchanged from the first half of 2014. Going forward, we remain optimistic for the fourth quarter based on several factors,” opined Terry J. Lundgren, chairman and chief executive officer of Macy's.

Comparable sales together with comparable sales of departments licensed to third parties were up 0.8 percent in first three quarters of 2014 over 2013. Year-to-date comparable sales exclusive of licensed businesses were up 0.1 percent in 2014 compared with 2013. For the year to date, Macy's total sales were 18.741 billion dollars, up slightly from total sales of 18.729 billion dollars in the first three quarters of 2013.

In the third quarter of 2014, the company opened three new Macy's stores in Sarasota, FL, Las Vegas, NV, and The Bronx in New York City, and closed Macy's stores in Bradenton, FL, and York, PA. In Torrance, CA, three Macy's stores were consolidated into two as part of a mall redevelopment. A new Bloomingdale's replacement store opened in the third quarter in Palo Alto, CA.

The company has revised its 2014 guidance. Earnings per diluted share for the full-year 2014 now are expected in the range of 4.25 dollars to 4.35 dollars, compared with previous guidance in the range of 4.40 dollars to 4.50 dollars. Guidance is for full-year 2014 comparable sales together with comparable sales of departments licensed to third parties to increase by 1.2 percent to 1.5 percent (0.7 percent to 1 percent on a comparable sales basis exclusive of licensed businesses), compared to previous guidance for growth of 2 percent to 2.5 percent (1.5 percent to 2 percent on a comparable sales basis exclusive of licensed businesses). In the fourth quarter, comparable sales together with comparable sales of departments licensed to third parties are expected to grow by approximately 2 percent to 3 percent (1.8 percent to 2.8 percent on a comparable sales basis exclusive of licensed businesses).