The May Department Stores Co. (St. Louis) reported a net loss of $110 million for its second quarter 2003.
A year ago, it earned $69 million for the same period, but it said second quarter 2003 results include a charge of $318 million for asset impairment and other costs related to the recently announced divestiture of 34 stores. Excluding these costs, second quarter 2003 earnings were $92 million.
Net sales were down 1 percent for the quarter, ending Aug. 2, 2003, and same-store sales decreased 3.1 percent.
For the six months ended August 2, there was a net loss of $38 million (versus net earnings of $139 million a year ago). Net sales were down 4.1 percent and same-store sales decreased 6 percent.
During the quarter, the company announced its intention to divest 32 Lord & Taylor stores, a Famous-Barr store and a Jones Store location. When the divestitures are completed, the company expects to save approximately $50 million a year.
May also announced the acquisition of Modern Tuxedo, the leading tuxedo rental and sales retailer in the Chicago metropolitan area, as well as a licensing agreement with Hearst Magazines to jointly market a variety of home merchandise under the House Beautiful trademark beginning in 2005.
Year-to-date, May has opened six new department stores: two Foley's stores, in Houston and Lake Charles, La.; two Kaufmann's stores, both in Columbus, Ohio; a Filene's store in Brockton, Mass.; and a Meier & Frank store in Ogden, Utah. Five department stores will open in the second half of 2003: a Lord & Taylor store in Miami; a Famous-Barr store in Columbia, Mo.; a Foley's store in Dallas; a Hecht's store in Richmond, Va.; and a Kaufmann's store in Pittsburgh.
Year-to-date store openings for May's Bridal Group include 11 David's Bridal stores; three After Hours Formalwear stores; and 25 Modern Tuxedo stores.