Macy's Net Jumps 50 Percent in Fourth Quarter
Posted on February 22, 2011 by
CINCINNATI-On the back of what the company described as a "successful" holiday shopping season, Macy's firmed its bottom line by 50 percent in its fiscal fourth quarter, to $667 million.
Net sales increased by 5.4 percent to $8.3 billion in the quarter, which ended Jan. 29. This included a comparable-store sales rise of 4.3 percent. While gross margin slimmed by 40 basis points to 41.3 percent, selling, general and administrative expenses were cut by 100 basis points as a percentage of sales to 27.2 percent, and rose by just 1.5 percent.
For the full fiscal year, Macy's posted a 157 percent gain in net income to $847 million. Net sales for the full year were $25 billion, up 6.4 percent.
Lauding the company for its strong performance during the year, Terry Lundgren, chairman, president and chief executive officer, said Macy's "is now on a clear path that will lead to continued growth in sales earnings and cash flow in the years ahead. We remain in the early phases of implementing several key strategies--localizing assortments through My Macy's, embracing customer centricity and driving omnichannel integration."