Company raises fourth quarter earnings guidance
CINCINNATI--(BUSINESS WIRE)--Feb. 7, 2013--
Macy’s, Inc. (NYSE:M) today reported total sales of $1.799 billion for
the five weeks ended Feb. 2, 2013, an increase of 34.6 percent compared
with total sales of $1.337 billion in the four weeks ended Jan. 28,
2012. The January period reflects an extra week in fiscal 2012, creating
a 53-week fiscal year that occurs approximately every six years in the
accounting cycle for most retailing companies.
On a same-store basis – which includes comparable four-week periods this
year and last year – Macy’s, Inc. sales were up 11.7 percent in January
as compared to January 2012.
“Simply put, January was an outstanding month for Macy’s and
Bloomingdale’s. Our sales were driven by our strategy to flow-in more
fresh fashion goods in December to better serve post-holiday shoppers
seeking new and interesting merchandise,” said Terry J. Lundgren,
chairman, president and chief executive officer of Macy’s, Inc. “This
exceptional January performance capped our company’s third consecutive
year of topline sales growth of more than $1 billion, which began in
2009 when we restructured Macy’s into a national retailer with a local
focus. Clearly, our strategies are resonating with customers as they
shop in our stores, online and via mobile.
“We are continuing to execute new elements within our key strategies to
maintain the growth and momentum in our business. Our team across the
company remains committed to innovation and continuous improvement
through enhanced localization of our merchandising and marketing
strategies, omnichannel integration and customer engagement,” Lundgren
For the 14-week fourth quarter of fiscal 2012, Macy’s, Inc.’s sales
totaled $9.350 billion, up 7.2 percent from total sales of $8.724
billion for the final 13 weeks of 2011. On a same-store basis – which
includes comparable 13-week periods this year and last year – the
company’s fourth quarter sales were up 3.9 percent.
For fiscal 2012 as a whole, Macy’s, Inc. sales totaled $27.686 billion,
up 4.9 percent from total sales of $26.405 billion in fiscal 2011. On a
same-store basis – which includes comparable 52-week periods this year
and last year – Macy’s, Inc.’s fiscal 2012 sales were up 3.7 percent.
Online sales (macys.com and bloomingdales.com combined) were up 48.9
percent in January, 47.7 percent in the fourth quarter and 41.0 percent
for fiscal 2012 compared to the same periods in 2011. Online sales
positively affected the company’s same-store sales by 3.3 percentage
points in the fourth quarter and 2.2 percentage points in fiscal 2012 as
a whole. Online sales are included in the same-store sales calculation
for Macy's, Inc.
Given its strong January performance, the company is raising fourth
quarter earnings guidance to the level previously provided in November
2012. Earnings per diluted share for the fourth quarter of 2012 is now
expected in the range of $1.94 to $1.99, excluding costs associated with
the previously announced debt tender offer and store closings. This
compares with earnings guidance provided on Jan. 3, 2013 for fourth
quarter earnings in the range of $1.91 to $1.96 per diluted share,
excluding those costs.
Including the 22 cents per diluted share for costs associated with the
debt tender offer and store closings, earnings per diluted share for the
fourth quarter of 2012 are now expected to be in the range of $1.72 to
Retirement Plan Changes
Macy’s, Inc. also reported that it will be making changes to its
retirement plans in order to better plan and manage expenses in an
environment in which healthcare costs are expected to increase.
Effective December 31, 2013, benefits payable under the company's
existing defined benefit pension and supplementary executive retirement
plans will generally be fixed at current levels (subject to continued
vesting of rights to receive benefits earned for service prior to that
date and interest on such benefits). Effective January 1, 2014, company
matching contributions under the company's 401(k) plan will be increased
and a new defined contribution plan, similar in operation to the
company's 401(k) plan, will be implemented to provide for income
deferral and company matching contribution opportunities with respect to
compensation in excess of amounts eligible for such opportunities under
the company's 401(k) plan.
The company does not expect the changes to its retirement plans to have
a material impact on retirement-related expenses for 2012. After giving
effect to the savings from the changes to the retirement plans, the
company expects retirement-related expenses for fiscal 2013 to be
approximately $10 million higher than 2012 levels. Thereafter, the
company expects such savings to offset increases in healthcare costs and
to facilitate the achievement of its profitability goals (EBITDA as a
percent to sales of 14 - 15%). In connection with the changes to its
retirement plans, the company expects to record a one-time reduction in
its retirement-related liabilities on the balance sheet of approximately
$300 million in fiscal 2012. Actual amounts of retirement plan savings,
healthcare costs and other selling, general and administrative expenses
may vary significantly from period to period.
Discontinued Monthly Reporting
As previously announced in November 2012, Macy’s, Inc. will discontinue
reporting monthly sales, beginning in fiscal 2013, consistent with the
practice of most other retailers. Sales will continue to be reported
quarterly, along with earnings and cash flow.
Fourth Quarter Earnings Call/Webcast
Macy’s, Inc. will report its fourth quarter earnings on Tuesday, Feb.
26, and will webcast a call with financial analysts and investors that
day at 10:30 a.m. (ET). The webcast is accessible to the media and
general public via the company’s website at www.macysinc.com.
Analysts and investors may call in on 1-888-277-7060, passcode 4317621.
A replay of the conference call can be accessed on the website or by
calling 1-888-203-1112 (same passcode) about two hours after the
conclusion of the call.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one
of the nation’s premier retailers, with fiscal 2012 sales of $27.7
billion. The company operates about 840 department stores in 45 states,
the District of Columbia, Guam and Puerto Rico under the names of Macy’s
and Bloomingdale’s, as well as the macys.com and bloomingdales.com
websites. The company also operates 12 Bloomingdale’s Outlet stores.
Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including variability in the costs of providing
healthcare and retirement benefits to current or former employees,
conditions to, or changes in the timing of, proposed transactions,
prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores, off-price
and discount stores, manufacturers’ outlets, the Internet, mail-order
catalogs and television shopping and general consumer spending levels,
including the impact of the availability and level of consumer debt, the
effect of weather and other factors identified in documents filed by the
company with the Securities and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past news
releases, is available at www.macysinc.com/pressroom).
Source: Macy’s, Inc.
Jim Sluzewski, 513-579-7764