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, and 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.


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 May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money