Macy’s profit slips, forecast lowered
Home & Textiles Today Staff -- Home Textiles Today, August 13, 2008
Cincinnati – Macy’s today reported a 1.35% decline in profit to $73 million, or 17 cents per share, and subsequently lowered its outlook for the year.
Results were impacted by $26 million in costs to consolidate three Macy’s divisions, a move announced this past February. The company said the initiative will reduce costs by about $100 million annually beginning in 2009.
Results for the second quarter ended Aug. 2 also included non-cash asset impairment charges of $50 million related to private brand tradenames acquired in the merger with The May Department Stores Company in 2005.
Sales in the second quarter slipped 3.0% to $5.7 billion, with comps down 2.1%.
Macy’s cut its profit projection for the year to a range of $1.70 to $1.80 per share. It had previously forecast EPS of $1.70 to $1.85. Macy’s also said it expects a comp decline of roughly 1.6% for the year.