Home ‘outstanding' at Macy's during strong Q3

CINCINNATI - Clocking its 15th consecutive quarter of improved earnings in a tepid economic climate, Macy's Inc. offered "cautiously optimistic" expectations for the holiday selling season.

Terry Lundgren, chairman, president and ceo, credited the My Macy's localization strategy, investments in omnichannel integration and stepped up training of store associates to improve customer engagement for the results.

Sales in the third quarter, ended Nov. 2, rose 3.3% to $6.276 billion, with comps up 3.5% for the company. Including sales from departments licensed to third parties, comps increased 4.6%. Net income jumped 22.1% to $177 million, or 47 cents per share.

The home business in particular, especially in the textiles, furniture and mattresses categories, "was outstanding" in the third quarter, noted cfo Karen Hoguet during Macy's earnings call this morning.

Year to date, total sales increased 2.1% to $18.7 billion, with comp up 2.2%. Including sales from licensed departments, comps rose 3.1%. Net income climbed 11.6% to $675 million.

On the real estate front, during the third quarter Macy's opened a new Macy's replacement store in Bay Shore, NY, and consolidated the Macy's men's and furniture store in downtown Sacramento, Calif., into a nearby full-line store. Early in the fourth quarter, the company opened a new Bloomingdale's store in Glendale, Calif.

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