NEW YORK, Wed Aug 8, 2012 – Macy’s Inc. reported a higher-than-expected second-quarter profit on Wednesday, helped by cost controls and strong sales in July, and the department store chain raised its full-year profit forecast.
Macy’s shares were up 3.2 percent to $38.20 in premarket trading.
As previously reported, second-quarter sales rose 3 percent to $6.12 billion. Sales at stores open at least a year, a key industry metric known as same-store sales, also rose 3 percent.
Same-store sales were below the retailer’s forecast for a 3.5 percent jump. Chief Executive Terry Lundgren blamed “a soft economy,” less spending by foreign tourists, and disruptions caused by the ongoing $400 million makeover of Macy’s iconic Manhattan flagship store.
But the chain’s sales improved in July, beating expectations, and Lundgren said he was confident Macy’s could win market share heading toward the holiday season.
His confidence comes as rival J.C. Penney Co. Inc. continues to work on a massive overhaul, which has confused shoppers and led sales at that chain to plunge.
Macy’s reported net income of $279 million, or 67 cents a share, for the quarter that ended July 28, up 15.8 percent from $241 million, or 55 cents a share, a year earlier. Analysts’ average forecast was 64 cents a share, according to Thomson Reuters I/B/E/S.