Macy’s Inc. (M) reported a 0.7% growth in total sales for the 5-week period ended Jan. 3, 2009. Total sales for the month were $4.43 billion, compared to $4.40 billion posted in the same month last year.
Bolstered by the performance, Macy’s lifted its fourth-quarter earnings guidance to a range between $1.14 and $1.18 per share, compared to an earlier prediction of $1.00 to $1.05 per share. The guidance is in line with the Zacks Consensus Estimate of $1.14 per share derived from 14 covering analysts.
Year to date, total sales dipped 6.1% to $22.2 billion from $23.7 billion reported in the same period last year. Online sales, which include macys.com and bloomingdales.com, sustained their growth momentum in December and jumped 29.4% for the month under review, and were up 19.3% year to date. The company’s same-store sales for the month of December 2009 rose 1.0%, though year-to-date same-store sales were down 5.8%.
Macy’s stated that sales during the month grew at both its namesake and Bloomingdale’s stores. The company witnessed strong performance, particularly at Bloomingdale’s, driven by sales of gifts and designer brands.
Macy’s department stores sell a wide range of merchandise. The company’s products include men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. However, sales at these departmental stores have been sluggish, as consumers hit by the recession and with less disposable income are focusing more on basic items.
On Monday, Macy’s announced the closure of five underperforming stores. Following the closures, the company will operate 849 stores, including 809 Macy’s and 40 Bloomingdale’s.
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