Macys, Inc. reported total sales of $1.213 billion for the four weeks ended Jan. 31, 2009, a decrease of 4.7% compared with total sales of $1.273 billion in the four weeks ended Feb. 2, 2008. On a same-store basis, Macys, Inc. sales were down 4.5% in January.
For the 13-week fourth quarter of fiscal 2008, Macys, Inc.s sales totaled $7.934 billion, down 7.7% from total sales of $8.594 billion for the final 13 weeks of 2007. On a same-store basis, the companys fourth quarter sales were down 7%. This is slightly better than the companys guidance for fourth quarter sales to be down approximately 7.5% .
Total sales for the 52 weeks of fiscal 2008 were $24.892 billion, down 5.4% from total sales of $26.313 billion in the 52 weeks of fiscal 2007. On a same-store basis, Macys, Inc.s annual sales were down 4.6%.
The company said it is very encouraged with fourth quarter sales performance in its 20 My Macys pilot localization districts relative to other geographic markets. Sales performance in these 20 districts significantly lagged other local markets in spring 2008 prior to the implementation of My Macys activities, but swung to improved performance relative to non-My Macys markets in the fourth quarter. As announced earlier this week, the My Macys strategy will begin rolling out in the second quarter of 2009 when approximately 1,200 new My Macys executive positions will be added to local markets across the country. In the future, the company believes it will be better able to capture additional market share from the localization approach.
Given the poor macro-economic environment, Macys, Inc. continues to manage its business conservatively to ensure inventory, expenses and capital expenditures are aligned with sales assumptions for 2009. The company ended the year with approximately 7.4% lower inventory on a comparable store basis and believes its assortments are well-positioned to deliver value and newness going into the spring season.
Macys, Inc. expects to end the fourth quarter with approximately $1.3 billion in cash on hand, compared with $583 million at the end of fiscal 2007, and no borrowings against its $2 billion bank credit agreement.
Online sales (macys.com and bloomingdales.com combined) were up by 15.5% in January, by 24% in the fourth quarter, and by 29% for the full year. Online sales are included in the same-store sales calculation for Macys, Inc.
The company currently expects fourth quarter earnings per share on a diluted basis in the range of $1.00 to $1.02, excluding one-time costs associated with consolidations announced in February 2008 and store closings announced in January 2009, compared with previous guidance of 90 cents to $1.00 per diluted share on the same basis. Thus, for fiscal 2008 as a whole, current guidance is for earnings per share on a diluted basis of $1.20 to $1.22, excluding previously announced asset impairment charges and costs mentioned above, compared with previous guidance of $1.10 to $1.20 per diluted share on the same basis.
