Macy's Inc. (Cincinnati) announced improved third quarter results that exceeded the company's expectations for same-store sales, gross margin, earnings and cash flow.
Third quarter sales dropped down 3.6 percent. For the year to date, Macy's sales totaled $15.640 billion, or down 7.8 percent compared to the first 39 weeks of 2008. On a same-store basis, the department store retailer’s year-to-date sales declined 7.5 percent.
"Given the difficult economic climate, we had an excellent quarter,” says Terry Lundgren, Macy's Inc. chairman, president and ceo. “Our business improved progressively each month during the period and we are entering the holiday selling season confident in our locally-focused organizational structure and the high caliber of our talent."
The company says some bright spots in the third quarter included strong sales at Bloomingdale's and continued growth in its Internet businesses. Online sales (macys.com and bloomingdales.com combined) were up 21.1 percent in the third quarter this year and 15.6 percent for the year to date.
In the third quarter, Macy's opened four new stores, in the Fresno, Calif.; Visalia, Calif.; Dallas-Fort Worth; and Kansas City, and a replacement store in Nampa, Idaho. The company also re-opened two stores in the Houston market that had been damaged last year by Hurricane Ike. For the year, Macy's has opened or re-opened eight stores.