Macy's Reports Fourth Quarter Sales Drop

Macy's Inc. (Cincinnati) reported sales in the fourth quarter of 2008, ended Jan. 31, 2009, totaled $7.9 billion, a decrease of 7.7 percent, compared with sales of $8.5 billion in the same period last year. On a same-store basis, Macy's fourth quarter sales were down 7.0 percent.

For the 52 weeks of fiscal 2008, the company's total sales were down 5.4 percent and on a same-store basis, Macy's year-to-date sales declined 4.6 percent.

“As the economy weakened further in the fourth quarter, Macy's again outperformed most major competitors in same-store sales, as we did all through the year,” says Terry Lundgren, Macy's chairman, president and ceo. “This speaks well of the value, quality and fashion delivered by Macy's and Bloomingdale's through the holiday season, and of the determination and strength of our organization.

“While 2008 results reflect the worst economic environment of our generation, we have taken aggressive action to drive sales, maintain profitability and conserve cash,” says Lundgren.

Among those initiatives, Macy’s is adopting a unified operating structure, rolling out its My Macy's localization initiative nationwide, reducing expenses and capital expenditures, managing inventories conservatively, paying down debt and lowering the dividend. The company expects a challenging environment through the remainder of fiscal 2009 will lead to same-store sales down 6 to 8 percent in 2009.

The company plans to open new Macy's stores in Lee's Summit, Mo. (Kansas City market), Dallas and Phoenix, as well as a replacement Macy's store in Nampa, Idaho. In addition, the company is expected to reopen two Macy's stores in the Houston market that were damaged in Hurricane Ike.

The company operates more than 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's.