Macy’s, Inc. Comparable Sales Including Licensed Departments Rose 4.3% in November/December Period; Comparable Sales Rose 3.6%
Company maintains FY2013 EPS guidance, provides initial FY2014 sales and EPS guidance
CINCINNATI--(BUSINESS WIRE)-- Macy’s, Inc. (NYSE:M) today announced that its comparable sales, together with comparable sales from departments licensed to third parties, rose by 4.3 percent in the 2013 holiday shopping season – the months of November and December combined – compared with the same period last year. November/December 2013 comparable sales were up 3.6 percent.
(Editor’s Note: Macy’s, Inc. this afternoon also issued a separate news release outlining cost reduction initiatives to support continued profitable sales growth.)
“The 2013 holiday season was successful for Macy’s and Bloomingdale’s as we offered fresh and distinctive merchandise, delivered great value to the customer and provided a robust omnichannel shopping experience which served our customers whenever, however and wherever they chose to shop and to buy,” said Terry J. Lundgren, Macy’s chairman, president and chief executive officer. “Even in a questionable macroeconomic environment with challenging weather in multiple states, the positive response from our customers during the holiday season is yet another vote of confidence that our well-established strategies continue to work for us.”
Macy’s, Inc. is scheduled to report fourth quarter sales and earnings on Tuesday, Feb. 25, 2014. Additional detail on financial performance will be provided at that time. The company will webcast a call with financial analysts and investors at 10:30 a.m. ET on Feb. 25. Macy's, Inc.’s webcast is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call in on 1-888-262-8795, passcode 5455814. A replay of the conference call can be accessed on the Web site or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call.
The company’s comparable sales include net sales from stores open at least one full fiscal year, as well as online sales at macys.com and bloomingdales.com. The company licenses third parties to operate certain departments in its stores and receives commissions from these third parties based on a percentage of their net sales. Neither the licensed department sales nor the commissions received are included in the calculation of comparable sales.
Please see the last page of this news release for important information regarding the calculation of the company’s comparable sales together with comparable sales from departments licensed to third parties. The company believes that the combination of the two provides a useful measure for assessing changes in total customer demand at Macy’s and Bloomingdale’s.
Macy’s, Inc. is narrowing the range of its guidance for comparable sales growth in the second half of 2013 to a range of 2.8 percent to 2.9 percent (from previous guidance of up between 2.5 percent and 4 percent) – which calculates to guidance for comparable sales in the fourth quarter to grow by approximately 2.3 percent to 2.5 percent, and for full-year 2013 sales to grow by 2.2 percent to 2.3 percent.
The company is maintaining its full-year 2013 earnings guidance (reiterated on Nov. 13, 2013) in the range of $3.80 to $3.90 per diluted share, excluding charges related to today’s announcement of operating cost reductions, store closings and asset impairment charges.
The company also noted that it will forego an expected $150 million pension contribution in the fourth quarter of 2013 as a result of better-than-expected market returns.
Macy’s, Inc. also provided initial guidance for fiscal 2014. Management currently expects comparable sales in 2014 to increase in the range of 2.5 percent to 3 percent compared with 2013 levels. Earnings per share are expected in the range of $4.40 to $4.50.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2012 sales of $27.7 billion. The company operates about 840 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 13 Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
(Note: additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)
Important Information Regarding Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures provide users of the Company's financial information with additional useful information. See the table below for supplemental financial data and corresponding reconciliations to GAAP financial measures. These non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in these non-GAAP financial measures may be significant items that could impact the Company's financial position, results of operations and cash flows and should therefore be considered in assessing the Company's actual financial condition and performance. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
Macy's, Inc. believes that providing comparable sales growth including the impact of growth in comparable sales of departments licensed to third parties supplementally to its results of operations calculated in accordance with generally accepted accounting principles provides useful information to investors. In particular, Macy's, Inc. believes that this supplemental information assists in evaluating the Company's ability to generate sales growth, whether through owned businesses or departments licensed to third parties, on a comparable basis, and in evaluating the impact of changes in the manner in which certain departments are operated (e.g. the conversion in 2013 of most of the Company's previously owned athletic footwear business to licensed Finish Line shops).
9 Weeks Ended
January 4, 2014
Increase in comparable sales (Note 1)
Impact of growth in comparable sales of departments licensed to third parties (Note 2)
Comparable sales growth including the impact of growth in comparable sales of departments licensed to third parties
|(1)||Represents the period-to-period change in net sales from stores in operation throughout 2013 and 2012 and all net Internet sales, excluding commissions from departments licensed to third parties.|
|(2)||Represents the impact on comparable sales of including the sales of departments licensed to third parties occurring in stores in operation throughout 2013 and 2012 and via the Internet in the calculation. The Company licenses third parties to operate certain departments in its stores and online and receives commissions from these third parties based on a percentage of their net sales. In its financial statements prepared in conformity with GAAP, the Company includes these commissions (rather than sales of the departments licensed to third parties) in its net sales. The Company does not, however, include any amounts in respect of licensed department sales in its comparable sales in accordance with GAAP.|
Jim Sluzewski, 513-579-7764
Matt Stautberg, 513-579-7780
Source: Macy’s, Inc.
Released January 8, 2014