Macy’s 1st Quarter Profits Beat Estimates

New York—Macy’s Inc. said today that had a better-than-expected first quarter profit of $23 million, rooted, company officials says, in the success of its My Macy’s localized buying strategy.

For the period ending May 1, Macy’s reported a net income of $23 million, or 5 cents a share, compared with a loss of $88 million (21 cents a share) a year earlier.

Sales increased 7.2% to $5.57 billion with same-store sales increasing 5.5% exceeding company estimates. Online sales from macys.com and bloomingdales.com rose 34%. Gross margin increased to 39.4% from 38.1%.

“The momentum from our fourth quarter accelerated in the first quarter,” says Terry Lundgren, Macy’s ceo. “We are much better able to anticipate and react to customers needs in each location through My Macy’s localization.”

 Macy’s as Retailer of the Year

To get more information about the My Macy’s strategy and the inside on the store’s accessories business, check out the June issue of Accessories magazine where Macy’s division will be featured as retailer of the year.

Even with the impressive results, Macy’s hesitated in raising its annual profit forecast any further given “recent market volatility and global economic concerns.”  Last month, Macy’s met with Wall Street analysts and increased its full-year outlook to profit as much as $1.80 a share from $1.60 a share.

Macy’s Inc., which is based in Cincinnati and New York, operates more than 850 department stores under the Macy’s and Bloomingdale’s names.

Like this? Share it!