Macy’s Inc posted better-than-expected profit for the fourth quarter and forecast an improvement in same-store sales this year.
Macy’s reported net income of $466 million, or $1.10 a share, for the fourth quarter ended on Jan. 30, compared with a year-earlier loss of $4.77 billion, or $11.33 a share. Excluding one-time items, it earned $1.40 a share, beating the $1.37 expected on average by Wall Street analysts.
Sales fell 1.1% to $7.85 billion. Comp stores slid 0.8%, but that was better than the Cincinnati-based company’s forecast decline of 1% to 2%.
The company attributed the profit to cost cuts, the success of its My Macy’s program where it stocks merchandise based on local tastes, a nearly 27% increase in online sales, and a significant rebound at Bloomingdale’s stores.
“The fourth quarter represented a clear-cut improvement in sales trends from earlier in the year,” Lundgren said in a statement. “We believe this momentum will continue in 2010. While we still see little meaningful near-term improvement in macroeconomic conditions, we do believe there is opportunity to gain market share.”
For the current fiscal year, Macy’s said it expected same-store sales to rise 1% to 2%. It forecast earnings of $1.55 to $1.60 a share, while analysts are expecting $1.57.
The company expects full-year capital spending of about $550 million.
