Macy's Posts $23 Million in Net Income in First Quarter
Posted on May 13, 2010 by
CINCINNATI-Macy's first quarter produced net income of $23 million, reversing a net loss of $88 million from the first quarter of last year.
A good deal of the retailer's turnaround came from a 7.2 percent increase in net sales, which were $5.6 billion in the quarter. In addition, Macy's pumped its gross margin by 130 basis points to 39.4 percent, and slimmed selling, general and administrative expenses as a percentage of sales by 180 basis points to 35.8 percent. SG&A rose marginally on a dollar basis.
In addition, the company benefited from the absence of $138 million in costs related to restructuring and expenses from divisional consolidation and localization initiatives, a figure that was posted in Macy's first quarter of last year.
Noting in a company statement that both Macy's and Bloomingdale's experienced "an excellent quarter," Terry Lundgren, chairman, president and chief executive officer, added that the company is undertaking efforts to expand both store brands. Lundgren said these initiatives include investments in multichannel integration involving both macys.com and bloomingdales.com, the opening of a smaller-format Bloomingdale's store in Santa Monica, Calif., and the launch of the Bloomingdale's Outlet concept with four store openings. These and the smaller Bloomingdale's are scheduled to open this fall.