Consolidated Statements of Income - 2Q 2005 (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
| |
13 Weeks Ended |
26 Weeks Ended |
| |
July 30,
2005 |
July 31,
2004 |
July 30,
2005 |
July 31,
2004 |
| |
| Net sales |
$3,623 |
$3,581 |
$7,264 |
$7,131 |
| |
| Cost of sales (Note 2) |
2,126 |
2,111 |
4,302 |
4,234 |
| |
| Percent to sales |
58.7% |
59.0% |
59.2% |
59.4% |
| |
| Gross margin |
1,497 |
1,470 |
2,962 |
2,897 |
| |
| Percent to sales |
41.3% |
41.0% |
40.8% |
40.6% |
| |
| Selling, general and administrative expenses (Note 3) |
1,206 |
1,225 |
2,419 |
2,435 |
| |
| Percent to sales |
33.3% |
34.2% |
33.3% |
34.1% |
| |
| Operating income |
291 |
245 |
543 |
462 |
| |
| Percent to sales |
8.0% |
6.8% |
7.5% |
6.5% |
| |
| Interest expense - net (Note 4) |
(54) |
(119) |
(108) |
(179) |
| |
| Income before income taxes |
237 |
126 |
435 |
283 |
| |
| Federal, state and local income tax expense |
(89) |
(48) |
(164) |
(108) |
| |
| Net Income |
$148 |
$78 |
$271 |
$175 |
| |
| Basic Earnings per Share |
$.87 |
$.44 |
$1.60 |
$.97 |
| |
| Diluted Earnings per Share (Note 5) |
$.84 |
$.43 |
$1.56 |
$.96 |
| |
| Average common shares: |
| Basic |
171.2 |
179.1 |
170.0 |
179.8 |
| Diluted |
175.7 |
182.0 |
174.2 |
183.1 |
| |
| Depreciation and amortization expense |
$178 |
$178 |
$356 |
$355 |
Notes:
(1) Because of the seasonal nature of the retail business, the results of operations for the 13 and 26 weeks ended July 30, 2005 and July 31, 2004 (which do not include the Christmas season) are not necessarily indicative of such results for the fiscal year. Certain reclassifications were made to prior period amounts to conform with the classifications of such amounts for the most recent period.
(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 26 weeks ended July 30, 2005 or July 31, 2004. For the 13 weeks ended July 31, 2004, cost of sales includes inventory valuation adjustments of $13 million primarily related to the Macy's home store centralization. For the 26 weeks ended July 31, 2004, cost of sales includes inventory valuation adjustments of $17 million related to the Macy's home store centralization and the Burdines-Macy's consolidation.
(3) For the 13 weeks ended July 31, 2004, selling, general and administrative ("SG&A") expenses include $18 million of costs incurred in connection with the Macy's home store centralization, the Burdines-Macy's consolidation and other store closings. For the 26 weeks ended July 31, 2004, SG&A expenses include $33 million of costs incurred in connection with the Macy's home store centralization, the Burdines-Macy's consolidation and other store closings.
(4) Interest expense for the 13 and 26 weeks ended July 31, 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 26 weeks ended July 31, 2004, store closing and consolidation costs and Macy's home store centralization costs (See notes 2 and 3) amounted to $.11 and $.17 per diluted share, respectively.
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Historical Data:
Consolidated Financial Statements: