Here are some details from the Macy's earnings release and conference call yesterday.
The business now and the rest of 2008
- In January and February executives have become more concerned about the economy and consumer spending, though the end of February was better than the beginning.
- For 2008, Macy's expects same-store sales to be down 1 percent to up 1.5 percent.
- Macy's is assuming sales will pick up mid-third quarter.
- The company does not expect a large number of store closings in the near future.
- The company plans to expand Bloomingdale's more aggressively in the future.
- The recent consolidation of regional offices is designed to shift resources and improve execution at the store level. More local assortments and better customer service on the floor should begin to show up a bit in the fall, with a bigger impact in spring, 2009.
- These changes will also allow buyers to make big merchandising decisions faster and simplify relationships with vendors.
- Macy's long-term goal is to grow same-store sales 2 percent annually.
Fourth quarter 2007
Same-store sales: down 2 percent
Total sales: down 6.2 percent to $8.6 billion
Net income: up 2.3 percent to $750 million
Same-store sales: down 1.3 percent
Total sales: down 2.4 percent to $26.3 billion
Net income: down 10.2 percent to $893 million