Earnings roundup: Macy’s, Saks Fifth Avenue
New York--Online sales climbed more than 40 percent in a “great year” for Macy’s Inc. while Saks Inc. reported that general economic concerns and Hurricane Sandy impacted sales in both the fourth quarter and full year.
Highlights from both company’s fourth-quarter and fiscal-year results released Tuesday are below.
Fourth-quarter same store-sales climbed 4 percent for Macy’s Inc. while total sales reached $9.35 billion, up 7 percent year-over-year. Online sales, counting Macys.com and Bloomingdales.com, were up 48 percent year-over-year in the fourth quarter, helping to boost same-store sales.
Operating income totaled $1.39 billion, up from $1.28 billion in the fourth quarter of fiscal 2011.
For the fiscal year ended Feb. 2, comp sales increased 4 percent. Total sales reached $27.69 billion, up 5 percent from $26.41 billion in fiscal 2011. Online sales were up 41 percent.
Operating income totaled $2.66 billion, compared to $2.41 billion in fiscal 2011.
“2012 was another great year in our company’s evolving story of growth,” Macy’s Inc. Chairman, President and CEO Terry Lundgren said. “We are accelerating progress in omni-channel strategies at Macy’s and Bloomingdale’s to bring together our efforts in stores, online and mobile in a manner that satisfies emerging shopping patterns and capitalizes on the strength of our inventory regardless of where the customer demand occurs.”
He added that the retailer will roll out new strategies targeting Millennial generation consumers, “now America’s largest generation,” in 2013.
In the fiscal year, Macy’s opened seven stores--two Macy’s and five Bloomingdale’s outlets--and closed eight stores: five Macy’s, a Macy’s furniture clearance center, a Macy’s men’s and home store (consolidated into the main store in the same shopping center) and a Bloomingdale’s Home Store.
In fiscal 2013, Macy’s said it anticipates same-store sales to increase 4 percent.
Saks Fifth Avenue
Same-store sales were essentially flat in the fourth quarter for Saks Inc., increasing 0.7 percent. Total fourth-quarter sales were $976.6 million, compared to $925.1 million in the fourth quarter 2011.
Net income was $28.4 million, down from $37.0 million. Gross margin reached 37.7 percent, up from 37.6 percent in the fourth quarter of last year.
The company said that Hurricane Sandy was a drag on its fourth-quarter sales, due to both the disruption in business in the Northeast and to online sales.
“We posted a 0.7 percent comparable store sales gain in the fourth quarter, essentially in line with our expectation of relatively flat comparable store sales. This modest gain was on top of a very solid 7.7 percent comparable store sales increase in the fourth quarter of 2011,” Chairman and CEO Stephen Sadove said. “As previously disclosed, our fourth-quarter sales were negatively impacted by Hurricane Sandy, which caused significant disruption to our very important Northeastern markets and to Saks.com.”
Fine jewelry was not one of the merchandise categories the retailer listed as a strong fourth-quarter performer.
For the fiscal year ended Feb. 2, same-store sales were up 3 percent. Total sales reached $3.15 billion, up 4 percent from $3.01 billion.
Net income totaled $62.9 million, down from $74.8 million in the previous fiscal year. Gross margin was 40.6 percent, compared to 40.8 percent in fiscal 2011.
Sadove termed 2012 as “challenging,” noting that the retailer’s sales and earnings were below initial expectations due to continued macroeconomic concerns, the election, the “fiscal cliff” distraction and Sandy. However, the noted that the company made headway on several initiatives to designed to create an omni-channel shopping experience.
The company closed three Saks Fifth Avenue stores in 2012, bringing the total closed since 2010 to 10. It opened five new and one replacement Off 5th stores and renovated two locations.
As recently announced, the Saks Fifth Avenue stores in Dallas and Stamford, Conn. will close in June and early 2014, respectively.
In fiscal 2013, Saks said it anticipates same-store sales to increase 3 to 5 percent.