Macy’s, Inc.’s operating income totaled $506 million or 8.5 percent of sales for the quarter ended July 30, 2011, compared with operating income of $370 million or 6.7 percent of sales for the same period last year.
For the first half of 2011, Macy’s, Inc.’s operating income totaled $836 million or 7.1 percent of sales, compared with operating income of $573 million or 5.2 percent of sales for the same period last year.
Net cash provided by operating activities was $587 million in the first half of 2011, compared with $288 million in the first six months of last year. This includes a funding contribution to the company’s pension plan of $225 million in the first half of 2011, compared with $325 million in the first half of 2010. Net cash used by investing activities in the first half of 2011 was $222 million, compared with $124 million a year ago. Net cash used by financing activities in the first six months of 2011 was $334 million, including $337 million used to repay debt. In the first half of 2010, net cash used by financing activities was $642 million, including $584 million used to repay debt. An additional $109 million in debt is scheduled to mature on Sept. 15, 2011.
Macy’s, Inc. currently expects same-store sales in the second half of fiscal 2011 to be up between 4 percent and 4.5 percent, which would result in full-year 2011 same-store sales being up between 4.8 percent and 5.1 percent. At the beginning of the year, the company’s initial guidance was for a 2011 same-store sales increase of approximately 3 percent. In July, full-year same-store sales guidance was raised to an increase of approximately 4.8 percent, reflecting improvement in the business trend.
Macy’s, Inc. is increasing its full-year 2011 earnings guidance to $2.60 to $2.65 per diluted share, including $1.74 to $1.79 per diluted share in the second half of 2011. This compares with previous full-year guidance of $2.40 to $2.45 per diluted share, and initial earnings guidance of $2.25 to $2.30 per diluted share provided at the beginning of the year.
Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2010 sales of $25 billion. The company operates about 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's, as well as the macys.com and bloomingdales.com websites. The company also operates four Bloomingdale’s Outlet stores.