Cincinnati -- Macy’s net income in the three months ended Jan. 28 rose a better-than-expected 12% to $745 million as the chain, buoyed by strong holiday and online sales. The company has now seen net income rise in three straight quarters.
“We have more than doubled our earnings over the past three years, driven by innovative strategic initiatives that are being executed with discipline at both Macy’s and Bloomingdale’s. Our diluted earnings per share, adjusted for certain items, grew by 36% in fiscal 2011, on top of double-digit increases in each of 2009 and 2010,” said Terry J. Lundgren, chairman, president and chief executive officer of Macy’s.
Revenue climbed 5.5% to $8.72 billion in the fourth quarter. Same-store sales increased 5.2%.Online sales, which include results from both the Macy's and Bloomingdale's websites, jumped 40%.
Analysts said that Macy’s used promotions to attract shoppers during the holiday season, but did not make the mistake of some others retailers in that it did not cut prices too deeply.
“Our year was punctuated with a terrific holiday selling season as our customers responded to our assortment of most-wanted merchandise for gifts and self-purchase, as well as compelling marketing campaigns," Lundgren said.
Analysts said that Macy’s was able to successfully using promotions to lure shoppers during the holiday season without cutting prices too deeply.
For the year, Macy's earned $1.26 billion, up from $847 million in the previous year. Full-year revenue rose 5.6% to $26.41 billion from $25 billion. Online sales rose nearly 40%. Same-store sales increased 5.3%.
Lundgren said that Macy’s online business will generate about $2 billion in sales in 2012.