Macy's Trims Loss in Third Quarter
November 11, 2009,
CINCINNATI-The third-quarter net loss for Macy's totaled $35 million, down from the $44 million loss the department-store retailer posted in the third quarter of last year.
The company sliced away at expenses in the quarter, cutting selling, general and administrative expenses by 2.5 percent and net interest expense by 4.2 percent. Cost of goods sold also fell by 2.2 percent. These declines helped offset a 3.9 percent drop in net sales, which finished the third quarter at $5.3 billion.
According to a Macy's statement, the retailer exceeded its quarterly expectations for same-store sales (down 3.6 percent), gross margin, earnings and cash flow.
Macy's also said it expects same-store sales to be off from 1 percent to 2 percent in the fourth quarter--better than its previous guidance, which forecasted a 5 percent to 6 percent drop in comparable-store sales for the quarter. For the full year, same-stores sales are expected to be down from 5.4 percent to 5.7 percent.