Macy's meets 3Q earnings guidance

CINCINNATI Macy’s Inc. today reported earnings of 8 cents per diluted share for the third quarter of 2007, ended Nov. 3. This compares with diluted earnings per share from continuing operations of 3 cents for the same 13-week period last year.

Sales in the third quarter totaled $5.906 billion, an increase of 0.3% compared to total sales of $5.886 billion in the same period last year. On a same-store basis, Macy’s Inc.’s third quarter sales were down 0.8%. This is within the company’s guidance for third quarter sales to be in the range of down 1% to up 1%.

Terry Lundgren, Macy’s chairman, president and ceo, said, “Despite the unseasonably warm weather in September and October, we were able to deliver third quarter same-store sales within our guidance and earnings per share at the top end of our guidance. We have a wide range of new and distinctive merchandise in our assortment for the holiday season at both Macy’s and Bloomingdale’s, and we believe we will compete successfully in the fourth quarter, despite what continues to be a challenging economic environment.” 

Macy’s Inc. expects same-store sales in the range of down 2% to up 1% in the fourth quarter of 2007. November same-store sales are expected to be significantly higher, with December expected to be below last year. For fiscal 2007 as a whole, same-store sales are expected in the range of down 0.3% to down 1.3%.

Total sales are expected to be $8.7 billion to $8.9 billion in the fourth quarter of 2007. For fiscal 2007 as a whole, total sales are expected to be $26.4 billion to $26.6 billion.

Earnings per diluted share, excluding merger integration costs, are expected to be $1.70 to $1.80 in the fourth quarter.