Despite 4Q earnings drop, Macy's remains confident

CINCINNATI Macy’s Inc. reported earnings of 73 cents per diluted share for the 13-week fourth quarter of 2008, ended Jan. 31, 2009, down from earnings of $1.24 per share from last year.

Terry Lundgren, Macy’s Inc. chairman, president and CEO, said, "As the economy weakened further in the fourth quarter, Macy’s Inc. again outperformed most major competitors in same-store sales, as we did all through the year. 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."

Sales in the fourth quarter of 2008 totaled $7.93 billion, a decrease of 7.7%, compared with sales of $8.59 billion in the same period last year. On a same-store basis, Macy’s Inc.’s fourth quarter sales were down 7%.

Macy’s Inc. is assuming a very challenging environment through the remainder of fiscal 2009 and currently is assuming that same-store sales in 2009 will be down between 6% and 8%.

Including this sales assumption, Macy’s Inc.’s current guidance is for fiscal 2009 earnings per share on a diluted basis of 40 cents to 55 cents, excluding restructuring-related costs, which currently are estimated at $370 million in 2009. Should the economic environment improve, we would expect our sales and earnings to exceed this level.