Macy’s Q3 earnings surge, announces plans for three new stores
Cincinnati -- Macy's net income surged in the third quarter amid strong sales. The retailer on Wednesday also raised its full-year profit outlook and announced plans to build two new stores in New York and one in California.
Macy's earned $139 million for the three months ended Oct. 29, up from $10 million, in the same period last year. Revenue increased 4.1% to $5.85 billion. Same-store sales rose 4%.
Macy’s chairman and CEO Terry Lundgren said a number of factors contributed to the chain’s strong third quarter performance, including its My Macy’s localization of assortments and shopping experience, omnichannel integration across stores, online and mobile, and associate coaching and selling programs to strengthen customer engagement. He noted that Bloomingdale’s also enjoyed a strong quarter, both in stores and online, a reflection of continued luxury spending.
"You can feel the momentum and confidence that has been building at Macy's since our organizational changes in 2009, and especially over the past nine months," Lundgren said. "We believe this will help us to continue to capture market share in the fourth quarter and lay the foundation for continued innovation in our business in 2012."
In related news, Macy’s said it will build a three-level, 160,000-sq. ft. in the Mall at Bay Plaza in The Bronx borough of New York City to open in fall 2013 or spring 2014. This will be Macy's second store in The Bronx, and its first new location within New York City since Queens Center was opened in 1995.
The company is also building a two-level, 200,000-sq.-ft. Macy's that will replace its existing location in Westfield South Shore, Bay Shore, N.Y. The current South Shore mall store is scheduled to close in March 2012 for razing, with construction beginning shortly thereafter on a new replacement store to open in fall 2013.
In addition, a one-level, 103,000-sq.-ft. Macy's will open in the Mall of Victor Valley, Victorville, Calif., in mid-2013. The retailer is taking over a former Gottschalk's location will be expanded and renovated.
The three new locations announced join three other previously announced Macy's stores that are in various stages of construction -- Macy's in City Creek Center in downtown Salt Lake City; Southridge Mall in Greendale, Wis.; square and Gurnee Mills in Gurnee, Ill.
In the third quarter, the company opened new Bloomingdale’s Outlet stores, as previously announced, in Estero, Fla., and Wrentham, Mass. A third new Bloomingdale’s Outlet store in Schaumburg, Ill., opened in the first week of the fourth quarter.