Macy's ends 2012 with bang, ups guidance for 2013
HTT Staff -- Home & Textiles Today, 2/26/2013 12:06:16 PM
Cincinnati - Home textiles were among the multiple best-performing segments as well as one of the strongest private branded categories that helped drive Macy's Inc.'s sales during the fourth quarter and fiscal year.
During the department store chain's earnings call this morning, cfo Karen Hoguet explained that the company "ended 2012 very strongly, with outstanding January sales performance far and ahead of our expectations. We made up much of the November-December shortfall...We had a good [fourth] quarter and a very good year. It was our third consecutive year of strong sales, profit, and cash flow. We are clearly running on all cylinders."
Macy's operating income rose 8.3% to $1.391 billion for the 14-week quarter ended Feb. 2.
Sales in the quarter grew 7.2% to $9.35 billion, with came store sales up 3.9% for the comparable 13-week periods this year and last.
Combined online sales for Macys.com and Bloomingdales.com jumped 47.7% in the quarter and 41.0% for the full fiscal year. Ecommerce sales positively affected the company's same-store sales by 3.3 percentage points in the fourth quarter and 2.2 percentage points in fiscal 2012 as a whole.
"Our online sales are very strong," Hoguet added. "We are very pleased with how both Macys.com and Bloomingdales.com are helping us grow our customer base and increase spend with our existing store customers. We are also benefitting from a very large increases in traffic on the websites but also from conversion."
For the 53-week fiscal 2012, operating income rose by 10.4% to $2.661 billion.
Sales for the year totaled $27.686 billion, up 4.9%. Same store sales - which included comparable 52-week periods this year and last - grew 3.7%, which the company noted was better than initial guidance of a 3.5% increase.
Having exceeded its original guidance for the recent fiscal year, Macy's Inc. offered new guidance for the current one.
The company is now assuming same-store sales growth of approximately 3.5% in fiscal 2013. Guidance for earnings per share in fiscal 2013 is $3.90 to $3.95. Capital expenditures for the year are expected to be approximately $925 million.
The company has announced plans for new Macy's stores in Victorville, Calif., and Gurnee, Ill., as well as a Macy's Men's Store in Las Vegas. A new Macy's will open in Bay Shore, NY, to replace a previous location. Bloomingdale's will open a new store in Glendale, Calif., and a new Bloomingdale's Outlet store in Rosemont, Ill.
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