Macy's Inc. cuts 3Q loss

CINCINNATI Macy’s Inc. reported a loss of 8 cents per diluted share for the third quarter of 2009, ended Oct. 31. This compares with a loss of 10 cents per share in the same period last year.

“Given the difficult economic climate, we had an excellent quarter. 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,” said Terry Lundgren, Macy’s, Inc. chairman, president and chief executive officer.

Sales in the third quarter totaled $5.277 billion, down 3.9% from total sales of $5.493 billion in the third quarter of 2008. On a same-store basis, Macy’s Inc.’s third-quarter sales were down 3.6%.

The company currently expects same-store sales to be down 1% to 2% in the fourth quarter of 2009, which calculates to down 2.1% to 2.6% in the second half of 2009. This is better than previous guidance for second half same-store sales to be down 5% to 6%. At the level of current guidance for the fourth quarter, full-year 2009 same-store sales are expected to be down between 5.4% and 5.7% -- better than the company’s original guidance, provided at the beginning of the year, for fiscal 2009 same-store sales to be down between 6% and 8%.

Macy’s Inc. is assuming fourth quarter earnings per share on a diluted basis will be $1.00 to $1.05 per share, excluding restructuring-related costs. At the level of current guidance for the fourth quarter, full-year 2009 diluted earnings per share will be $1.01 to $1.06, excluding restructuring-related costs. This is an increase from previous guidance (provided in August 2009) for 70 cents to 80 cents per share on the same basis.