CINCINNATI Macy's reported earnings of 35 cents per diluted share for the second quarter of 2010, ended July 31. According to the company, this significant earnings increase over the second quarter of last year was driven by higher-than-expected sales, improved margins, a reduced expense rate and disciplined inventory management.
"We believe our business is beginning to hit its stride after implementing significant structural and organizational changes over thepast two years. While the economic environment remains uncertain, Macy's and Bloomingdale's have a terrific opportunity to continue to take market share and grow our business profitably," said Terry Lundgren, Macy's Inc. chairman, president and CEO.
In the second quarter of 2009, Macy's earned 2 cents per diluted share.
Sales in the second quarter totaled $5.537 billion, up 7.2% from total sales of $5.164 billion in the second quarter of 2009. On asame-store basis, Macy's Inc.'s second quarter sales were up 4.9%.
Macy's Inc. currently expects same-store sales in the second half of fiscal 2010 to be up in the range of 3% to 3.5%, whichwould result in full-year 2010 same-store sales to be up between 4% and 4.2%. At the beginning of the year, the company'sinitial guidance was for a 2010 same-store sales increase of 1% to 2%. At the end of the first quarter, full-year same-storesales guidance was raised to up 3% to 3.5%, reflecting improvement in the business trend.
Based on stronger sales expectations, Macy's Inc. is increasing its full-year 2010 earnings guidance to $1.85 to $1.90 per diluted share.This compares with previous guidance of $1.75 to $1.80 per diluted share, and initial earnings guidance of $1.55 to $1.60 per diluted share provided at the beginning of the year.