Skip to comments.Macy's reports 59 percent drop in 4Q profit
Posted on 02/24/2009 7:19:58 AM PST by Nachum
NEW YORK (AP) -- Macy's Inc. reported an almost 59 percent drop in fourth-quarter earnings Tuesday as its results were dragged down by weak sales and one-time costs associated with the consolidations of regional divisions and store closings.
The Cincinnati-based company said Tuesday that in the three months ended Jan. 31, it earned $310 million, or 73 cents per share. That compares with $750 million, or $1.73 per share, a year earlier.
Sales fell 7.7 percent to $7.93 billion from $8.59 billion a year ago. Same-store sales, or sales at stores opened at least a year, fell 7 percent. Same-store sales are considered a key indicator of a retailer's health
(Excerpt) Read more at finance.yahoo.com ...
good night irene. wow.
Makes sense. My 401K is worth only half of what it was worth this time last year. Grrrrr!
And more fun to come, I’m predicting!
my mother in law plans on working til she is like 80.
Look on the bright side...at least it earned $310 million.
Macy’s is still smarting over their decisions to consolidate many regional department store chains and turn them all into Macy’s stores.
Overall their sales are reported down by 7%, but there is strong anectodal evidence that it’s down by close to 50% in Chicago and the midwest where these stores used to be Marshall Field’s. There is so much anger still at Macy’s management for taking away the Marshall Field stores. There have been boycotts and demonstrations in Chicago over this.
Then this recession hits then hard too. It’s a perfect storm of bad news for Macy’s management.
Yep. I was retiring in two years; it ain’t gonna happen now.
Actually, not bad. Profit was cut by ~2/3, but they are STILL PROFITABLE. Of course, there was probably a lot of anticipatory cost-cutting going on to eke out that profit.
On the other hand, it could just mean that last year their profits were over inflated. A more telling picture would be profits for the last 10 years at least.
Getting rid of Marshall Fields made absolutely no sense. It was a great brand with a long tradition.
At least they still sell Frango mints.
Article in the WSJ yesterday saying seniors are having a hard time finding work.
I remember my maternal grandparents tending bar well into their late 70s. They also scrounged bottles and cans from trash cans to collect the deposit. I felt very sorry for them when I was young, thinking how they really hadn’t saved for their old age.
Unfortunately, our government has put a whole generation of us who DID save a lifetime into that same boat.
I stop shopping their because of their logo. And let them know too. They were oblivious to the symbolism. What should that tell us?
Ah yes. The red star of Macy’s. That reminds some of the red star of communism.
They have management in that company who is oblivious to certain things. Their taking over the regional department stores and making them all Macy’s was a big blunder, but they will not admit it. Smart management would make changes when they see that their plans aren’t working out.
In Minnesota, Dayton’s became Marshall Fields, which later became Macy’s. Each time, the quality of the mens’ wear declined a bit.
What are we going to do now on Thanksgiving morning? Watch the Walmart parade?
I think it is because they run CNN right outside the dressing rooms.
Who wants to shop and listen to how bad the economy is?
Or, what a genius Obama is!
Maybe watch the Obama Brown Shirt’s Torchlight Parade.
Wow, people without jobs can’t afford to go shopping. I guess we shouldn’t have outsourced our manufacturing sector.
It’s not funny but my Mom isn’t collecting SS yet and her small business is on the verge of collapse. My husband isn’t laughing cause “momma from hell” may have to move in with us at some point. DAMN 0bama.
Doesn't anyone look at stock market charts?? It just stands to reason that if the majority of stocks for thousands of businesses trading in the markets fell by 50% (much more in most cases) then retail sales would also reflect the buying mood of the nation's spenders.
Who the heck is managing your 401k's? While expected earnings are down to next to nothing, there is no loss of earnings from previous years, and certainly no loss of the original capital, and the capital put into them over the past year.
What's depressing is the earnings, which amounts to around $200 per $100,000.
Unless you are allowing your 401k investment company to put your contributions into high risk investments, you shouldn't be loosing any capital, and even then, most reputable companies would have moved any funds invested in poorly performing higher risk options and moved them back into the bond markets to avoid losses.
That is what they did to Hecht’s in the Washington DC area, so now Macy’s (and Lord and Taylor, which Macy’s also owns) have all the same stuff, none of which I want to buy. Macy’s sent me some 20 percent off anything coupons, so I spent two hours in Macy’s last weekend looking for appropriate spring workplace clothing. All I found were little jackets that make anyone over the age of 12 look fat and squatty (which I am not), tight slacks, tight, capri-length jeans, dresses suitable for cocktail parties, an entire section full of clothing to wear to the gym, tunics suitable for wearing on the beach, and the suits that I might have been able to wear to work were uniformly frumpy. Until they start selling things people actually want to buy and wear, they are going to continue circling the drain. I bailed out and went to Bloomingdale’s. At least I can be seen in public in their wares.
No, Obama will have See,B.S. beam live coverage of Ramadan in Mecca so you can watch thousands of Muzzies walking counter clockwise around the "Ka'aba, then moving in to give Allah a kiss; one at a time, hour after endless hour, cutting away occasionally to cover other Muzzies at earlier stages of their pilgrimage, running between those two mountains, tossing pebbles at an old tree stump some camel jockeys dragged into Mecca a thousand years ago from the sea shore a few hundred miles away, which they think is the devil.
I get emails almost daily from Macy’s to promote their latest sale gimmick. Free shipping, 40% off, super duper bedding and mattress spectacular, etc. I was just thinking last week that their desperation makes it a good scenario to short their stock. Alas, I didn’t act on my thought.
This should change dramatically on the first of April. I plan to take my $13.00 and go to Macy’s and spend it. The following week I am going to Target and who knows where it will go from there. By the way, does Macy’s sell anything for $13.00?
You can get, not one, but, count them, TWO shopping bags for that amount and receive change on top of that!
“What are we going to do now on Thanksgiving morning? Watch the Walmart parade?”
Hopefully every last one of them!!
I’m fine. Most of my cash is in gold & silver. The physical stuff; not paper.
Anything I lost in the market has been more than made up for in other areas. I’m well diversified...and still buying because bargains abound. :)
Be grateful for any profit.
The Macy’s logo predates the star that China uses, so why the hell should Macy’s change?
Her experience is common. My wifes 401K is down to about half of what it was 3 years ago. Plug that into the fact she works for one of the largest employers in the state of Texas, and making it an isolated incident is going to be tough.
Hate to burst your bubble, but Macy’s and Bloomingdales are under the same ownership. They don’t own Lord and Taylor.
Oh Lord, I can’t keep them straight any more. You are right, now. But at one time, Federated owned Macy’s and L&T. They sold L&T to some other group. You are a little slow on the uptake, though, this story is from last year. The great tragedy was the destruction of May Co., Bullocks and I. Magnin. I can remember being taken to the beautiful store that was Bullock’s Wilshire when I was a little kid to buy clothes.