Macy’s Inc. reported January same-store sales rose 3.4%.
Total sales also rose 3.4%, to $1.26 billion. Macy’s also said it’s raising its
fourth-quarter earnings target to $1.35 to $1.37 a share, excluding
restructuring-related costs. The company had expected earnings of $1.14 to
$1.18 a share.

For the 13-week fourth quarter of fiscal 2009, Macy’s, Inc.’s sales totaled
$7.851 billion, down 1.0% from total sales of $7.934 billion for the final 13
weeks of 2008. On a same-store basis, the company’s fourth quarter sales were
down 0.8%. This is better than the company’s guidance for fourth quarter sales
to be down between 1% and 2%.

Online sales ( and combined) were up 23.9% in January,
26.6% in the fourth quarter and 19.6% for fiscal 2009. Online sales positively
affected the company’s same-store sales by 0.7%age points in the fourth quarter
and 0.6%age points in fiscal 2009 as a whole. Online sales are included in the
same-store sales calculation for Macy’s, Inc.

“Our fiscal year ended on a strong note, with performance throughout the
fourth quarter driven by the unified organizational structure implemented at
Macy’s in 2009, as well as continued success in our My Macy’s localization
strategy,” said Terry J. Lundgren, chairman, president and chief executive
officer of Macy’s, Inc. “Through these two initiatives, as well as a
strong sales performance at Bloomingdale’s, we have been able to improve our
sales trend, manage expenses, increase margins and accelerate cash flow – all
of which have contributed to earnings that are higher than we had anticipated.

“Our company’s sales and earnings results for the month and quarter
reinforce the confidence we have in the strategic direction of our business.
It’s noteworthy that all 10 of Macy’s top-performing geographic markets in 2009
were original My Macy’s pilot districts, indicating ongoing momentum from the
process of tailoring local assortments and shopping experiences as this
strategy is rolling out nationally,” Lundgren said. “Now that we have
implemented fundamental changes to Macy’s operating and organization structure
in 2009, we are moving into 2010 firmly focused on the execution of our strategies.”

Given the better-than-expected sales, expense management and gross margins, as
well as a favorable tax settlement (see below), Macy’s, Inc. increased its
previously provided earnings guidance for the fourth quarter of 2009. The
company now expects fourth quarter earnings per share on a diluted basis to be
$1.35 to $1.37, excluding restructuring-related costs, compared with previous
guidance of $1.14 to $1.18 per share. For fiscal 2009 as a whole, management
expects earnings per share on a diluted basis to be $1.36 to $1.38, excluding
restructuring-related costs, compared with previous guidance of $1.15 to $1.19
per share.

Included in the new fourth quarter guidance is a non-cash credit resulting from
the settlement of the company’s federal income tax examinations for fiscal
years 2006, 2007, and 2008. The credit, which is primarily attributable to the
disposition of former subsidiaries, will reduce income tax expense by
approximately $21 million and contribute 5 cents per diluted share to fourth
quarter earnings.

For fiscal 2009 as a whole, Macy’s, Inc. sales totaled $23.491 billion, down
5.6% from total sales of $24.892 billion in fiscal 2008. On a same-store basis,
Macy’s, Inc.’s fiscal 2009 sales were down 5.3%.