Macy's suffers 1Q loss, but sees boost online

CINCINNATI Macy’s reported a net loss of 21 cents per diluted share for the first quarter of 2009. In the first quarter of 2008, Macy’s lost 14 cents per diluted share.

“We continue to successfully navigate this very difficult economic environment,” said Terry Lundgren, Macy’s chairman, president and CEO. “Our first quarter sales were consistent with our initial expectations, while earnings and cash flow performance were better than expected.

Sales in the first quarter totaled $5.199 billion, down 9.5% from total sales of $5.747 billion in the first 13 weeks of 2008. On a same-store basis, Macy’s first quarter sales were down 9%.

Online sales (macys.com and bloomingdales.com combined) were up 16.2% in the first quarter of 2009 and positively affected the company’s first quarter 2009 same-store sales by 0.5 percentage points. Online sales are included in the same-store sales calculation for Macy's.

Macy's is maintaining its guidance for fiscal 2009 sales to be down between 6% and 8%, and for earnings of 40 cents to 55 cents per diluted share, excluding division consolidation costs. The company expects it will exceed this guidance if the economy improves in the second half of the year. The company expects to book approximately $230 million in division consolidation costs in the final three quarters of 2009.