), one of the leading department store retailers in the U.S.,
posted healthy comparable-store sales for the five-week period
ended September 29, 2012.
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Comparable-store sales improved 2.5% year over year for the month
of September, attributable to continued strength in its online
business. Total sales increased 2.7% to $2.4 billion compared with
$2.3 billion in the comparable prior-year period.
The company stated that the comparable store sales for
August/September combined, marked an elevation of 3.6% year over
year, reflecting strong back-to-school sales. Year-to-date, Macy's
sales augmented 3.7% to $16.4 billion compared with $15.8 billion
in the same period last year, while, same-store sales increased
Online sales, which include sales from macys.com and
bloomingdales.com, surged 39% in September 2012. On a year-to-date
basis, online sales shot up 35.8% from the comparable period last
year. The company remains on track to expand both Macy's and
Bloomingdale's brands online.
Despite secular headwinds, Macy's has been performing well in the
current fiscal. The company has been taking a number of initiatives
in order to bolster its sales, profitability and cash flows. These
steps include integration of operations, consolidation of divisions
as well as developing e-commerce business and online order
We remain optimistic about the company's customer-centric
localization initiative called "My Macy's." The program aims at
improving comparable-store sales and reducing operating expenses,
with stores and merchandise assortments focusing on local customer
needs and preferences.
Macy's, which competes with
J. C. Penney Company Inc
), currently operates approximately 840 department stores in 45
states, the District of Columbia, Guam and Puerto Rico.
Currently, we have a long-term 'Neutral' recommendation on the
stock. However, Macy's holds a Zacks #2 Rank that translates into a
short-term 'Buy' rating.