CINCINNATI-Macy’s posted increases of 11.1 percent and 11.3 percent in fourth-quarter and fiscal-year net income, respectively, resulting in its fifth straight year of double-digit growth in earnings per share.
The bottom-line totals were $811 million for the quarter and $1.5 billion for the fiscal year, which ended on Feb. 1. Net sales in the quarter felt the impact of the severe January weather through much of the country (244 Macy’s and Bloomingdale’s stores were closed in that time), declining 1.5 percent to $9.2 billion and including a 1.4 percent gain in same-store sales.
This brought the sales total for the year to $27.9 billion, up 0.9 percent and including a 1.9 percent increase in same-store sales. This marked the fourth year in a row of same-store sales growth.
Terry Lundgren, Macy’s chairman, president and CEO, attributed the “strong year” to its core business strategies—My Macy’s localization of assortments, omnichannel integration and “magic selling”—which have become known by the acronym of MOM. “Customers are able to shop for and buy the products that they want and prefer in our stores, via mobile devices and on computers in a shopping environment that delivers outstanding value and is supported with great service,” Lundgren said.
Gross margin in the quarter finished dead even with gross margin in last year’s fourth quarter, at 40.6 percent. Selling, general and administrative expenses were down 4.1 percent in dollars and 70 basis points as a percentage of sales, to 25 percent.
For the new year, Macy’s said it expects same-store sales growth of from 2.5 percent to 3 percent. “Having generated this sustained level of momentum, we continue to drive for further growth through progressively deeper implementation of the MOM strategies that have set Macy’s Inc. apart from other retailers,” Lundgren said.