Macy's Boosts Same-Store Sales Nearly 5 Percent in Q2; Online Sales Climb 28 Percent
Crediting factors including more localized merchandise assortments, disciplined inventory management and development of its private label brands, Macy's Inc. reported strong financial results for the quarter ending July 31. Sales of $5.537 billion were 7.2% higher than the $5.164 billion in sales for the same period last year.
The crucial same-store sales metric was also positive for the retailer, which operates 850 department stores in 45 states under a number of banners. Same-store sales rose 4.9% in the second quarter; year-to-date, they are up 5.2%.
Macy's forecasts same-store sales will be up in the range of 3% to 3.5% for the second half of its fiscal year, resulting in same-store sales increases of between 4% and 4.2% for the full fiscal year. The company's initial guidance for fiscal 2010 same-store sales increases had been 1% to 2%; that forecast was raised to 3% to 3.5% at the end of the first quarter, reflecting improvement in business trends.
Higher online sales, which are included in same-store sales calculations, also contributed to the retailer's strong quarter. Sales at macys.com and bloomingdales.com were up 28.1% for the quarter and 31.0% for the first half of the year.
"Our performance reflects a number of strategic initiatives that are working successfully and complementing each other," said Terry J. Lundgren, Macy's chairman, president and CEO. "This includes My Macy's localization of merchandise assortments, centralization of key Macy's organizational functions, customer centricity activity, continued development of private brands, introduction of new exclusive market brands, improvement in associate selling and service skills, and integration of stores and online channels at Macy's and Bloomingdale's."
The company opened no new stores in the first half of the year, but it plans to open two in California in the second half of 2010, as well as a new Bloomingdale's store in Santa Monica, CA as well as four new Bloomingdale's Outlet stores, as previously announced.
The crucial same-store sales metric was also positive for the retailer, which operates 850 department stores in 45 states under a number of banners. Same-store sales rose 4.9% in the second quarter; year-to-date, they are up 5.2%.
Macy's forecasts same-store sales will be up in the range of 3% to 3.5% for the second half of its fiscal year, resulting in same-store sales increases of between 4% and 4.2% for the full fiscal year. The company's initial guidance for fiscal 2010 same-store sales increases had been 1% to 2%; that forecast was raised to 3% to 3.5% at the end of the first quarter, reflecting improvement in business trends.
Higher online sales, which are included in same-store sales calculations, also contributed to the retailer's strong quarter. Sales at macys.com and bloomingdales.com were up 28.1% for the quarter and 31.0% for the first half of the year.
"Our performance reflects a number of strategic initiatives that are working successfully and complementing each other," said Terry J. Lundgren, Macy's chairman, president and CEO. "This includes My Macy's localization of merchandise assortments, centralization of key Macy's organizational functions, customer centricity activity, continued development of private brands, introduction of new exclusive market brands, improvement in associate selling and service skills, and integration of stores and online channels at Macy's and Bloomingdale's."
The company opened no new stores in the first half of the year, but it plans to open two in California in the second half of 2010, as well as a new Bloomingdale's store in Santa Monica, CA as well as four new Bloomingdale's Outlet stores, as previously announced.
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