Consolidated Statements of Income - 3Q 2004 (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
| |
13 Weeks Ended |
39 Weeks Ended |
| |
October 30,
2004 |
November 1,
2003 |
October 30,
2004 |
November 1,
2003 |
| |
| Net sales |
$3,491 |
$3,486 |
$10,556 |
$10,211 |
| |
| Cost of sales (Note 2) |
2,100 |
2,091 |
6,296 |
6,118 |
| |
| Percent to sales |
60.2% |
60.0% |
59.6% |
59.9% |
| |
| Gross margin |
1,391 |
1,395 |
4,260 |
4,093 |
| |
| Percent to sales |
39.8% |
40.0% |
40.4% |
40.1% |
| |
Selling, general and administrative expenses
(Note 3) |
1,216 |
1,222 |
3,623 |
3,510 |
| |
| Percent to sales |
34.8% |
35.0% |
34.4% |
34.4% |
| |
| Operating income |
175 |
173 |
637 |
583 |
| |
| Percent to sales |
5.0% |
5.0% |
6.0% |
5.7% |
| |
| Interest expense - net (Note 4) |
(55) |
(61) |
(234) |
(196) |
| |
| Income before income taxes |
120 |
112 |
403 |
387 |
| |
| Federal, state and local income tax expense |
(46) |
(45) |
(154) |
(154) |
| |
| Net Income |
$74 |
$67 |
$249 |
$233 |
| |
| Basic Earnings per Share |
$.43 |
$.37 |
$1.41 |
$1.26 |
| |
| Diluted Earnings per Share (Note 5) |
$.42 |
$.36 |
$1.38 |
$1.25 |
| |
| Average common shares: |
| Basic |
172.0 |
182.6 |
177.2 |
185.8 |
| Diluted |
174.4 |
185.7 |
180.2 |
187.5 |
| |
| Depreciation and amortization expense |
$178 |
$176 |
$533 |
$529 |
Notes:
(1) Because of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 30, 2004 and November 1, 2003 (which do not include the Christmas season) are not necessarily indicative of such results for the fiscal year.
(2) Merchandise inventories are primarily valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. Application of this method did not impact cost of sales for the 13 and 39 weeks ended October 30, 2004 or November 1, 2003. For the 13 weeks ended October 30, 2004, cost of sales includes inventory valuation adjustments of $14 million related to the Macy's home store centralization. For the 39 weeks ended October 30, 2004, cost of sales includes inventory valuation adjustments of $31 million (including $26 million related to the Macy's home store centralization and $5 million related to the Burdines-Macy's consolidation).
(3) Selling, general and administrative ("SG&A") expenses include costs and expenses related to the Rich's-Macy's and Burdines-Macy's consolidations, centralizing the Macy's home store business and other store closings. For the 13 weeks ended October 30, 2004, SG&A expenses include store closing and consolidation costs of $22 million, including Macy's home store centralization costs of $7 million and Burdines-Macy's consolidation costs of $5 million. For the 39 weeks ended October 30, 2004, SG&A expenses include store closing and consolidation costs of $55 million, including Macy's home store centralization costs of $26 million and Burdines-Macy's consolidation costs of $10 million. For the 13 weeks ended November 1, 2003, SG&A expenses include store closing and consolidation costs of $29 million, including $7 million related to the Rich's-Macy's consolidation. For the 39 weeks ended November 1, 2003, SG&A expenses include store closing and consolidation costs of $47 million, including $20 million related to the Rich's-Macy's consolidation.
(4) Interest expense for the 39 weeks ended October 30, 2004 includes $59 million of one-time costs, or 20 cents a diluted share, associated with the repurchase of $274 million of Federated's 8.5% senior notes due 2010.
(5) For the 13 and 39 weeks ended October 30, 2004, store closing and consolidation costs and Macy's home store centralization costs (See notes 2 and 3) amounted to $.13 and $.30 per diluted share, respectively. For the 13 and 39 weeks ended November 1, 2003, store closing and consolidation costs (See note 3) amounted to $.09 and $.15 per diluted share, respectively.
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Historical Data:
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