), one of the leading department store retailers in the U.S.,
posted strong same-store sales for the four-week period ended May
26, 2012, much better than the analyst's expectations. The increase
in sales was attributable to My Macy's localization initiatives,
omnichannel integration and robust online and brick and mortar
The company stated that total sales of $2.02 billion for the
month of May 2012, reflected an increase of 4.1% from $1.94 billion
in the comparable prior-year period. Same-store sales rose 4.2%
year over year for the month.
Management believes that the company gained momentum during the
month on the back of successful implementation of its fundamental
strategies, as well as the training of employees with a focus on
Year-to-date, Macy's sales jumped 4.3% to $8.16 billion compared
with $7.83 billion in the same period last year. For the first
seventeen weeks ended in 2012, Macy's same-store sales also
increased 4.3% over the prior-year period.
Online sales, which include sales from macys.com and
bloomingdales.com, continued to grow in May, surging 42.3% and on a
year-to-date basis, online sales shot up 35.7% from the comparable
period last year. The company seeks to expand both Macy's and
Bloomingdale's brands online.
Macy's total sales grew 4.3% to $6.14 billion in the
first-quarter 2012 from $5.89 billion in the prior-year period
while same-store sales climbed 4.4%. The company currently operates
approximately 840 department stores in 45 states, the District of
Columbia, Guam and Puerto Rico.
Macy's department stores sell a wide range of merchandise. Its
products include men's, women's and children's apparel and
accessories, cosmetics, home furnishings and other consumer
In an attempt to increase sales, profitability and cash flow,
the company has been taking steps such as integration of
operations, consolidation of divisions, customer-centric
localization initiatives, as well as developing e-commerce business
and online order fulfillment centers. Moreover, Macy's continues to
focus on price optimization, inventory management and merchandise
planning to drive traffic.
Therefore, we have a long-term Outperform recommendation on the
stock. However, Macy's, which competes with
J. C. Penney Company Inc.
), carries a Zacks #3 Rank that translates into a short-term Hold
DILLARDS INC-A (DDS): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
SAKS INC (SKS): Free Stock Analysis Report
To read this article on Zacks.com click here.