December Comps at May Dept. Stores Grow 1.1%

The May Department Stores reported preliminary net sales of $2.52 billion for the five-week period ended Jan. 3, 2004, a 2.3% increase from $2.46 billion in the similar period last year. Store-for-store sales increased 1.1%. December store-for-store sales increased 1.6%, excluding the remaining 30 stores that May previously announced it will divest.

Net sales for the first 11 months of fiscal 2003 were $12.63 billion, a
1.6% decrease compared with $12.84 billion during the first 11 months of
fiscal 2002.

    Net sales were as follows:

                      Fiscal    Fiscal   Percent   Store-for-Store Inc./(Dec.)
    (dollars in        2003       2002  Inc./(Dec.)     Actual     Adjusted *
     millions)

    December      $  2,517.0 $ 2,459.6     2.3%          1.1%          1.6%
    Year-to-date    12,626.8  12,835.5    (1.6)         (3.2)         (3.0)

    * Excludes the remaining 30 stores that May previously announced it will
      divest.

Net sales include merchandise sales and lease department income.
Store-for-store sales compare sales of stores open during both years beginning
the first day a new store has prior-year sales and exclude sales of stores
closed during both years.

Giftables led our December business. The driving forces were “initial”
products, “signature” logos, and the appeal of color. This was particularly
important in costume and silver jewelry, handbags, and small leather goods, as
well as ladies' tops. We also experienced strong sales in fashion
cold-weather merchandise such as knit scarves, mufflers, gloves, and headwear.
Other jewelry classifications that performed well were earrings and
leather-strap fashion watches. Men's gifts had strong performances in
designer dress shirts and neckwear, as did our “gift headquarters” shops
featuring interactive games, portable companion televisions, and air
purifiers. Non-apparel gift ideas from home that performed well included
portable electronics like Apple iPod MP3 players, mini-screen DVD players, and
digital cameras. Cookware, novelty bakeware, gadgets, and personal care
classifications such as back and body massagers and shavers also were popular
gifts.

Furniture sales were strong, although the home store business, especially
textiles and tabletop, lagged. Other businesses that achieved good sales were
apparel for the younger customer in both tailored and casual sportswear and
active and young men's collections. Shoes, boots, and ladies' suits also
achieved increases.