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Macy's posts slight rise in profits for Q2 2013

RBR Staff Writer Published 15 August 2013

Department store chain Macy's reported a slight increase in profit for the second quarter of fiscal 2013, as compared to the same period last year.

The chain's net income was $281m, as compared to $279m in the year-ago period. Net sales for the quarter declined 0.8% to $6bn, from $6.12bn in the prior-year quarter.

Gross margin for the quarter edged down to 41.8% from 41.9% in the year-ago period while operating margin declined to 8.8% from 9.1% in the same period last year.

Comparable sales for the second quarter declined 0.8% from the prior-year period.

Macy's chairman, president and chief executive officer Terry Lundgren said the company had planned second quarter sales with a lower increase than the first quarter because of a shift in a major promotional event.

"Even so, second quarter sales performance was softer than anticipated, and we are disappointed with the results," Lundgren added.

"Going into the third quarter, we also are encouraged by our early read on the back-to-school season. We accelerated receipts of fresh inventory at Macy's so we could be fully prepared for an early start to the academic year in certain regions of the country.

"As a result, we are capturing incremental sales opportunities in childrenswear, activewear and Impulse apparel (for the older Millennial customer)."

Cincinnati, Ohio-based Macy's operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's, as well as the macys.com and bloomingdales.com websites.

The company also operates 13 Bloomingdale's Outlet stores.