Company Raises Q4 Sales and Earnings Guidance
CINCINNATI--(BUSINESS WIRE)-- Macy's, Inc. (NYSE: M) today reported total sales of $2.344 billion for the four weeks ended Nov. 27, 2010, an increase of 7.8 percent compared with total sales of $2.174 billion in the four weeks ended Nov. 28, 2009. On a same-store basis, Macy's, Inc. sales were up 6.1 percent in November.
"November was a great month at Macy's and Bloomingdale's, with sales exceeding expectations both in our stores and online. Customers responded throughout the month to the uniqueness and fashion in our assortment, as well as to the exceptional value we provided in every merchandise category. Black Friday weekend was particularly strong, bolstering our confidence as we enter the heart of the holiday shopping season," said Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc. "We are clearly seeing the results of our omnichannel strategies to integrate stores and online so that we can serve customers no matter how they prefer to shop. On Black Friday alone, more than 4.5 million shoppers visited macys.com and bloomingdales.com, with a similarly high level of record traffic on CyberMonday (Nov. 29). While this resulted in further acceleration of online purchases, it also allowed customers to research and compare products they later bought in our stores."
For the year to date, Macy's, Inc. sales totaled $19.078 billion, up 7.1 percent from total sales of $17.814 billion in the first 43 weeks of 2009. On a same-store basis, Macy's, Inc.'s year-to-date sales were up 4.9 percent.
Online sales (macys.com and bloomingdales.com combined) were up 31.8 percent in November, and 28.9 percent in 2010 year-to-date, compared with the same periods in 2009. Online sales are included in the same-store sales calculation for Macy's, Inc.
"We have exciting plans for December, including family-oriented holiday events for which Macy's is well known and a compelling promotional calendar," Lundgren said. "Through our Believe campaign, we are encouraging children to write letters to Santa Claus and drop them off at the North Pole mailboxes located in every Macy's store. For each letter we receive, up to one million, we will donate $1 to the Make-A-Wish Foundation. Our goal is to donate $1 million again this year to Make-A-Wish, a great organization that grants wishes to children suffering from serious diseases. There are so many reasons why we expect our momentum from November will continue through the holidays. That said, our year-over-year results will be compared to a stronger December period last year."
Based on our performance in November, the company has increased its guidance for sales and earnings in the fourth quarter of 2010. Same-store sales in the fourth quarter now are expected to be up 3.5 percent to 4.5 percent, compared with previous guidance of up 3 percent to 4 percent. Earnings guidance for the fourth quarter now is $1.44 to $1.49 per diluted share, compared with previous guidance of $1.42 to $1.47 per diluted share. This would result in full-year 2010 earnings of $1.96 to $2.01 per diluted share, excluding expenses associated with the early retirement of debt.
Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2009 sales of $23.5 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.
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, changes in expected synergies, cost savings and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) 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).
Source: Macy's, Inc.
Released December 2, 2010