Tags: Macys | Earnings | Profit | Cold

Macy's Profit Rises Although Cold Chills Sales

Wednesday, 14 May 2014 08:34 AM

Macy's Inc.'s first-quarter profit rose 3.2 percent, but the department store chain's sales fell short of expectations as cool spring weather dampened shoppers' desire for shorts and T-shirts.

Investors pushed shares slightly higher in premarket trading after Macy's stuck with its full-year profit outlook, citing improving business trends that started in April. The retailer also raised its dividend by 25 percent.

"Overall, business trends were soft in January through March, with the exception of the Valentine's Day shopping period," Macy's Chairman and CEO Terry J. Lundgren said in a statement. "The trend improved in April when the weather began to turn in northern climate zones. We see this as a good sign moving forward into the second quarter."

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report first-quarter results that should provide insight into shoppers' mindset heading into the summer season. Wal-Mart Stores Inc. and J.C. Penney Co. are scheduled to report their results Thursday.

Like many retailers, Macy's was hurt by snowstorms and rain that kept shoppers away from malls in the winter months. The arrival of spring weather warmed up shoppers' buying enthusiasm, though it came too late in the quarter.

Macy's and others that cater to middle-class consumers are facing economic hurdles — while the job market is improving and the housing market is rebounding, the gains are not strong enough to sustain big shopping sprees.

Meanwhile, retailers are trying to respond to a shift toward buying and researching on computers and mobile devices. Macy's is trying to create a more seamless experience for shoppers who are going back and forth from stores to websites.

In late March, it named Chief Merchandising Officer Jeffrey Gennette president of the company, giving him additional oversight over marketing and the online business.

Macy's said it earned $224 million, or 60 cents per share, in the quarter that ended May 3. That compares with $217 million, or 55 cents per share, a year earlier.

Revenue slipped 1.7 percent to $6.28 billion.

Analysts expected a profit of 59 cents on revenue of $6.46 billion.

Revenue at stores open at least a year fell 0.8 percent.

Macy's shares rose 66 cents to $58.50 in premarket trading.

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
Companies
Macy's says its first-quarter profit rose 3.2 percent, but the department store chain's sales fell short of expectations as a tough economy and a cool spring dampened shoppers' appetite for shorts and T-shirts.However, Macy's Inc. is sticking with its full-year profit...
Macys, Earnings, Profit, Cold
402
2014-34-14
Wednesday, 14 May 2014 08:34 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved