Macy’s, the nation’s second biggest department-store chain, reported earnings today. With earnings of 55 cents per share, the company's bottom line is up 57% from last year’s second quarter EPS of 35 cents per share. Results topped analysts' forecast for 49 cents in EPS.
Macy’s chairman, president, and C.E.O. Terry J. Lundgren named it the company’s “…most successful second quarter and spring season in more than a decade.”
Sales in the second quarter were $11.8 billion, up 6.5% from last year’s $11.1 billion. Same store sales were up 6.4%, 1.3% of which can be credited to online sales this year to date.
Online sales (including sales from both macys.com and Bloomingdales.com) were up 40.2% in the second quarter.
Macy’s has yet to open any new stores this year to date though they have plans to open three new Bloomingdale’s Outlet stores later this year.
The Q2 operating income of the company was $506 million (8.5%) up from last year’s $370 million (6.7%). In the year to date, the company’s operating income was $836 million (7.1% of sales), up from last year’s $573 million (5.3% of sales).
In further good news, the net cash provided by Macy’s operating activities was $587 million in the first half of 2011, up from the first six months of last year’s $288 million.
Macy’s expects the second half of fiscal 2011 to bring increases of up to 4.5% for same-store sales, meaning the full year same-store sales could be up as high as 5.1%.
Of future earnings Lundgren says, “As we continue to closely monitor developments in the economy and financial markets, we are cautious but optimistic about this fall and are staying focused on those factors we can control.”
Lundgren cites some of the company’s key strategies as working together to better understand their customers, offering a range of quality products that appeal to said customers, and “engaging” them within the stores themselves and through online platforms with a goal of creating a “convenient and compelling” shopping experience.
Competitors Kohl’s and Nordstrom will report their second quarter earnings on Thursday while J.C. Penney and Dillard’s will report Friday.
Despite such an upbeat earnings report, Macy’s shares are trading lower by 1.9% on Wednesday, in line with the decline in the overall market.