Macy's Net Jumps in Third Quarter

CINCINNATI-An uptick in sales along with strong expense controls boosted Macy's bottom line by an impressive 1,290 percent in its fiscal third quarter, to $139 million.

The department store retailer's net sales rose 4.1 percent in the quarter, to $5.9 billion, including a 4 percent gain in same-store sales. Terry Lundgren, chairman, president and CEO, cited the My Macy's localization of store assortments; multichannel integration between stores, online and mobile; and its MAGIC selling and associate coaching programs for providing the booster to sales and increases in market share. Macy's online portals, and, provided a combined 39.8 percent sales increase in the quarter, which ended on Oct. 29.

In terms of expenses, Macy's shed 2.5 percent in dollars and 250 basis points as a percentage of sales from selling, general and administrative expenses, to 34.4 percent. The company also reduced interest expense by 34 percent. Gross margin dropped 60 basis points to 39.4 percent.

Macy's is expecting a fourth-quarter same-store sales gain of from 4 to 4.5 percent for the fourth quarter. Lundgren said the "momentum and confidence that has been building  at Macy's since our organizational changes in 2009" will provide further momentum for market-share increases in the fourth quarter and into 2012.

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.


  • 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


    September 2017


    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.


    •  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.