Macy’s 2Q Sales Down 3%

Macy’s, Inc. said sales in the second quarter, ended Aug. 2, fell 3 percent to $5.7 billion, when compared to sales during the same period of the prior year. On a same-store basis, its second quarter sales were down 2.1 percent.

For the year to date, Macy’s, Inc.’s sales totaled $11.46 billion, down 2.9 percent year-over-year. On a same-store basis, Macy’s, Inc.’s year-to-date sales were down 2.2 percent.

In the second quarter, the company opened a new Macy’s store in Houston.

The company, with corporate officers in Cincinnati and New York, said operating income totaled $259 million or 4.5 percent of sales for the quarter, compared with operating income of $250 million or 4.2 percent of sales for the same period of the prior year.

For the first half of 2008, Macy’s, Inc.’s operating income totaled $289 million or 2.5 percent of sales, compared to operating income of $458 million or 3.9 percent for the same period of the prior year.

Net cash provided by continuing operating activities was $592 million in the first half of 2008, compared with $412 million in the first half of last year, Macy’s said.

The company repurchased no shares of its common stock in the second quarter of 2008 and anticipates no share repurchases for the remainder of fiscal 2008. At August 2, 2008, the company had remaining authorization to repurchase up to approximately $850 million of its common stock.

In its forecast, Macy’s, Inc. said it expects same-store sales in the fall season to be flat to down 1 percent, which would result in fiscal 2008 same-store sales of down 1 percent to down 1.6 percent.

Macy’s, Inc., operates more than 850 department stores in 45 states, the District of Columbia, Guam, and Puerto Rico under the names of Macy’s and Bloomingdale’s. The company also operates macys.com, bloomingdales.com and Bloomingdale’s By Mail.