Macy’s April Sales Climb – Analyst Blog

Macy’s Inc. (M), one of the leading department store retailers in the United States, recently posted better-than-expected sales results for the four-week period ended May 1, 2010, on the heels of new merchandise assortments, and raised its first-quarter 2010 earnings guidance.

 

The company’s comparable-store sales for April 2010 inched up 1.1%. Although sales were hurt by a shift in pre-Easter sales in the March reporting period, it exceeded Macy’s guidance of flat comparable-store sales. Comparable-store sales for the March and April months together rose 6.2%.

 

The company said that total sales for April climbed 2.8% to $1,739 million from $1,691 million in the same month last year.

 

For first-quarter 2010, Macy’s total sales grew 7.3% to $5,578 million from $5,199 million in the prior-year quarter. Comparable-store sales for the quarter jumped 5.5%, surpassing the previously provided guidance of approximately 5%.

 

Online sales, which include macys.com and bloomingdales.com, sustained their growth momentum in April and jumped 23.4% for the month under review, and were up 34% in first-quarter 2010.

 

The better-than-expected April sales prompted management to raise its first-quarter 2010 earnings guidance. Macy’s now expects earnings in the range of 2 cents to 4 cents per share, up from its previous forecast of break-even earnings. The current Zacks Consensus Estimate for the quarter is 3 cents per share.

 

Macy’s department stores sell a wide range of merchandise. Macy’s products include men’s, women’s, and children’s apparel and accessories; cosmetics; home furnishings and other consumer goods.

 

The company is taking steps to increase sales, profitability and cash flow, which include integration of operations, consolidation of divisions and customer-centric localization initiatives. To help drive traffic, Macy’s continues to focus on price optimization, inventory management and merchandise planning.

 

Macy’s currently operates nearly 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.