Macy's Net Jumps 19.9 Percent in Q1

CINCINNATI-Increased sales and a close watch on costs helped fuel Macy's bottom line to a 19.9 percent gain, to $217 million, in its first quarter ending on May 4.

Net sales tallied $6.4 billion, up 4 percent, including a pickup of 3.8 percent in same-store sales across both Macy's and Bloomingdale's stores, which also takes in sales at the two stores' websites, macys.com and bloomingdales.com. Terry Lundgren, Macy's chairman, president and CEO, said the company managed to grow its sales in spite of unseasonably cool spring weather in its northern regions. Lundgren also observed that shoppers at both stores were highly conscious of their budgets in the quarter, including the higher-income Bloomingdale's customers.

Gross margin in the quarter remained flat at 38.8 percent. Selling, general and administrative expenses edged up 2.3 percent in dollars but shed 40 basis points as a percentage of sales, finishing the quarter at 32 percent. Interest expense fell 13.4 percent.

Going forward, Macy's is projecting an approximate 3.5 percent increase in same-store sales for the remainder of the year. "We are continuing to pursue myriad new growth opportunities within our time-tested M.O.M. strategies (My Macy's, Omnichannel and Magic Selling)," Lundgren said. "These strategies continue to work individually--and in unison--at Macy's to meet the needs of customers seeking fashion, quality, value and convenience."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.