) store expansion plans include opening of two stores in the Las
Vegas market, one being a two-level, 180,000 square feet full-line
store in fall 2014 in the upcoming shopping complex, Shops at
Summerlin, and another two-level, 105,000 square feet dedicated
Men's Store in spring 2013 in the Fashion Show Mall. These will
bring the total store count to seven in Las Vegas.
At present, Macy's operates a full-line outlet with a store size
of 201,000 square feet in the Fashion Show Mall, and employs 495
associates. Once the men's store is developed, the current store
will be refurbished by fall 2013 to enhance the women's collection,
including handbags, shoes and jewelry. With two operational stores,
the workforce is expected to be strengthened to 560.
Macy's departmental 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.
The U.S. economy is yet to recover. Amid such a scenario, Macy's
has been moving on an upbeat note. The company's sound fundamentals
across its Macy's and Bloomingdale's business, is mirrored through
strong second quarter results and management believes that it will
sustain the rhythm in 2012, as the year presents enormous
opportunity for enhancing market share.
The second-quarter 2012 earnings of 67 cents a share beat the
Zacks Consensus Estimate of 64 cents, and soared 22% from 55 cents
earned in the prior-year quarter on the back of My Macy's
localization initiatives, omnichannel integration, robust online
sales and effective cost management.
The Cincinnati, Ohio-based company reported total sales growth
of 3% to $6,118 million in the quarter from $5,939 million in the
year-ago period, and comfortably surpassed the Zacks Consensus
Estimate of $6,100 million. Comparable-store sales for the quarter
climbed 3%. Online sales, including sales from macys.com and
bloomingdales.com, continued to show growth momentum. For the
quarter, online sales were up 36.1%.
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. The company
also operates 11 Bloomingdale's locations.
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, and well defines the company's relentless
endeavors to keep itself on the growth trajectory in an economy,
which is still lackluster.
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