Macy’s comparable sales up 4.3 percent during Holiday Season

REPORT_ Macy’s has announced that its comparable sales, together with 

comparable sales from departments licensed to third parties, rose by 4.3 percent in the 2013 holiday shopping season in the months of November and December combined, compared with the same period last year. November-December 2013 comparable sales were up 3.6 percent. The company also announced it will implement focused cost reductions, including organizational changes, as it prepares to sustain profitable sales growth in the years ahead.

“The 2013 holiday season was successful for Macy’s and Bloomingdale’s, as we offered fresh and distinctive merchandise, delivered great value to the customer and provided a robust omni-channel shopping experience which served our customers whenever, however and wherever they chose to shop and to buy,” said Terry J. Lundgren, Macy’s Chairman, President and Chief Executive Officer.

“Our company has significantly increased sales and profitability over the past four years, and we have created a culture of growth at Macy’s, Inc. We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope. As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers,” Lundgren added.

Cost saving measures announced through a separate release are estimated to generate savings of approximately 100 million dollars per year, beginning in 2014. In conjunction with the implementation of these cost reductions, as well as of store closings and asset impairment charges, an estimated 120 million to 135 million dollars of charges, of which 50 million dollars to 55 million dollars is expected to be non-cash, will be booked in the fourth quarter of 2013.

The company is now narrowing the range of its guidance for comparable sales growth in the second half of 2013 to a range of 2.8 percent to 2.9 percent (from previous guidance of up between 2.5 percent and 4 percent), which calculates to guidance for comparable sales in the fourth quarter to grow by approximately 2.3 percent to 2.5 percent, and for full-year 2013 sales to grow by 2.2 percent to 2.3 percent. The company is maintaining its full-year 2013 earnings guidance in the range of 3.80 dollars to 3.90 dollars per diluted share.

Macy’s also provided initial guidance for fiscal 2014. Management currently expects comparable sales in 2014 to increase in the range of 2.5 percent to 3 percent compared with 2013 levels. Earnings per share are expected in the range of 4.40 dollars to 4.50 dollars.