Q3 EPS up 31% on sales growth of just 3.5% at Macy's

For the first three quarters of 2013, Macy’s, Inc.’s diluted earnings per share were $1.74, an increase of 20 percent compared with earnings of $1.45 per diluted share in the first three quarters of 2012.

Sales

Sales in the third quarter of 2013 totaled $6.276 billion, up 3.3 percent from total sales of $6.075 billion in the third quarter of 2012. On a comparable sales basis, Macy’s, Inc.’s third quarter sales were up 3.5 percent in 2013 over 2012. Together with sales from departments licensed to third parties, third quarter 2013 sales on a comparable basis were up 4.6 percent.

For the year to date, Macy’s, Inc. sales totaled $18.729 billion, up 2.1 percent from total sales of $18.336 billion in the first 39 weeks of 2012. On a comparable sales basis, Macy’s, Inc.’s year-to-date sales were up 2.2 percent in 2013 over 2012. Together with sales from departments licensed to third parties, year-to-date 2013 sales on a comparable basis were up 3.1 percent.

The company’s comparable sales include net sales from stores open at least one full fiscal year, as well as online sales at macys and Bloomingdales. The company licenses third parties to operate certain departments in its stores and receives commissions from these third parties based on a percentage of their net sales. Neither the licensed department sales nor the commissions received are included in the calculation of comparable sales.

In the third quarter, the company opened a new Macy’s replacement store in Bay Shore, NY, and consolidated the Macy’s men’s and furniture store in downtown Sacramento, CA, into a nearby full-line store. Early in the fourth quarter, the company opened a new Bloomingdale’s store in Glendale, CA.

Operating Income

Macy’s, Inc.’s operating income totaled $360 million or 5.7 percent of sales for the quarter ended Nov. 2, 2013, compared with operating income of $325 million or 5.4 percent of sales for the same period last year. For the first three quarters of 2013, Macy’s, Inc.’s operating income totaled $1.329 billion or 7.1 percent of sales, compared with operating income of $1.270 billion or 6.9 percent of sales for the same period last year.

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