Macy’s boosts profit outlook but remains cautious

NEW YORK — Department store operator Macy’s Inc. boosted its annual profit outlook after posting second-quarter earnings that beat Wall Street expectations. It benefited from streamlining its operations and remains cautious about consumer spending in coming months.

Here are details on Macy’s second quarter:

PROFITS: Macy’s earned $7 million, or 2 cents per share, in the quarter ended Aug. 1, compared with $73 million, or 17 cents per share, a year earlier. Excluding restructuring charges related to consolidations and to an initiative to regionalize merchandising, the company earned 20 cents per share, exceeding Wall Street estimates.

SALES: Revenue was $5.16 billion, down almost 10 percent from a year ago and slightly below analysts’ forecasts of $5.18 billion. Same-store sales, or sales at stores open at least a year, were down 9.5 percent in July from a year earlier.

WINNERS AND LOSERS: Macy’s said the weakest parts of its second-quarter business were furniture, mattresses and handbags. Sales were strongest in moderate-price apparel for men and women, housewares and cosmetics. Business was also strong in exclusive lines.

WHAT’S NEXT: Macy’s expects its same-stores sales to fall between 5 percent and 6 percent in the second half of fiscal 2009, which would result in a decline between 7 percent and 7.5 percent for the year. As Chief Financial Officer Karen Hoguet told investors during a conference call Wednesday, “our guidance is not anticipating any enormous improvement.”