Macy's 4Q Profit Up 50% On Lower Charges, Better Sales |
| Wall Street Journal - Feb 22, 2011 |
Macy's Inc.'s (M) fiscal fourth-quarter profit grew 50%, topping expectations, and the retailer predicted 2011 will see continued momentum.
Macy's credited its showing to keeping merchandise relevant by tailoring it to local tastes. Customers are responding to Macy's growing stable of private label and exclusive brands, multi-channel selling efforts and programs that train salespeople to be more engaged with customers, Chief Financial Officer Karen Hoguet said during a conference call with analysts.
The initiatives allowed 4.3% growth in comparable-store sales during the quarter, "on the high end of aggressive guidance we set for ourselves," Hoguet said. The department store's high-end Bloomingdale's chain, although its results are not broken out, also had a quarter that exceeded internal expectations, she said. "All in all, we are entering the year with building momentum which gives us confidence that we should have another strong year."
Macy's does, however, face the same heightened cotton and labor costs as other retailers and some price increases can be expected this year, Hoguet said. Measures like creating a "pricing team" dedicated to the issue are hoped to help pare costs, she said. The company also plans to temper prices increases by avoiding too much extra inventory. One way Macy's sees this occurring is through its "search and send" program where merchandise that may not be in stores can be shipped to customers from another store or a distribution center.
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- Posted: 2011-02-22 22:14:44
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