Macy's reports 11 percent rise in Q2 earnings

REPORT_ Macy's reported earnings of 80 cents per diluted share for the

second quarter of 2014, ended August 2, 2014. This represents an increase of 11 percent in earnings per diluted share from 72 cents in the second quarter of 2013. Macy's diluted earnings per share in the first half of 2014 were 1.40 dollars, an increase of 10 percent compared with earnings per diluted share of 1.27 dollars in the first half of 2013.

“Our sales trend improved at both Macy's and Bloomingdale's in the second quarter, reflecting a rebound in shopping activity once weather patterns normalized. We also benefitted from a shift in a major Macy's promotional event into the first two days of the quarter. Advancements in our M.O.M. strategies - My Macy's localization, Omnichannel integration and Magic Selling customer engagement - continued to drive sales growth across the country,” said Terry J. Lundgren, Macy's Chairman and Chief Executive Officer.

Sales in the second quarter of 2014 totaled 6.267 billion dollars, up 3.3 percent from total sales of 6.066 billion dollars in the second quarter of 2013. Comparable sales together with comparable sales of departments licensed to third parties were up 4 percent in the second quarter of 2014 over 2013. Second quarter comparable sales were up 3.4 percent in 2014 compared with 2013.

For the year to date, Macy's sales totaled 12.546 billion dollars, up 0.7 percent from total sales of 12.453 billion dollars in the first half of 2013. Comparable sales together with comparable sales of departments licensed to third parties were up 1.5 percent in the first half of 2014 over 2013. Year-to-date comparable sales were up 0.8 percent in 2014 compared with 2013.

In August 2014, the company closed Macy's stores in Bradenton, FL, and York, PA. In the second half of 2014, the company is opening three new Macy's stores in Sarasota, FL, Las Vegas, NV, and The Bronx in New York City. A new Bloomingdale's replacement store will open in Palo Alto, CA.

Expectations for the second half of 2014 remain on track, with guidance for comparable store growth of 2 percent to 3 percent. However, even with an improved sales trend in the second quarter, the company was unable to make up its sales shortfall from the first quarter. This calculates to expectations for a full-year 2014 comparable sales increase of 1.5 percent to 2 percent. Full-year 2014 comparable sales together with comparable sales of departments licensed to third parties now are expected to increase by 2 percent to 2.5 percent. The company continues to expect full-year 2014 earnings per diluted share in the range of 4.40 dollars to 4.50 dollars, consistent with guidance previously provided.