macy's inc (M) Key Developments
Macy’s, Inc. Declares Quarterly Dividend, Payable on Oct. 1, 2015
Aug 28 15
The board of directors of Macy's, Inc. declared a regular quarterly dividend of 36 cents per share on Macy's common stock, payable Oct. 1, 2015, to shareholders of record at the close of business on Sep. 15, 2015.
Macy's to Build New Store at Fashion Place in Murray, Utah, Near Salt Lake City
Aug 18 15
Macy's announced that it will build a new store at Fashion Place in Murray, Utah, near Salt Lake City, with an opening planned for the Spring of 2017. Construction on the 160,000 square-foot, two-level store will start in 2016. The store is expected to employ 150 people.
Macy's, Inc. Announces Unaudited Consolidated Earnings Results for the Thirteen Weeks and Twenty Six Weeks Ended August 1, 2015; Provides Earnings Guidance for the Full Year of 2015
Aug 12 15
Macy's, Inc. announced unaudited consolidated earnings results for the thirteen weeks and twenty six weeks ended August 1, 2015. For the thirteen weeks, the company reported net sales of $6,104 million compared to $6,267 million a year ago. Operating income was $436 million compared to $571 million a year ago. Income before income taxes was $343 million compared to $471 million a year ago. Net income was $217 million or $0.64 per diluted share compared to $292 million or $0.80 per diluted share a year ago. The company is reporting a 26% drop in profit and a sales shortfall after it was hobbled by weak tourist spending and West Coast port delays in the second quarter.
For the twenty six weeks, the company reported net sales of $12,336 million compared to $12,546 million a year ago. Operating income was $845 million compared to $1,014 million a year ago. Income before income taxes was $657 million compared to $814 million a year ago. Net income was $410 million or $1.19 per diluted share compared to $516 million or $1.40 per diluted share a year ago. Net cash provided by operating activities was $398 million compared to $736 million a year ago. Purchase of property and equipment was $367 million compared to $335 million a year ago. Cash flow from operating activities was $398 million, $338 million below last year due primarily to $106 million of lower net income and $154 million from higher inventory, net of payables.
The company provided earnings guidance for the full year of 2015. The company is maintaining its guidance for 2015 earnings per diluted share to be in the range of $4.70 to $4.80 as a result of the expected $250 million gain on the sale of real estate in downtown Brooklyn, which was not factored into previous calculations. The company expects annual effective tax rate to be approximately 37%.
Macy’s Forms Joint Venture with Fung Retailing to Test e-commerce in China
Aug 12 15
Macy’s, Inc. announced that it has formed a free-standing joint venture with Fung Retailing Limited to explore retailing in China. The joint venture, which is 65% owned by Macy’s and 35% owned by Fung Retailing, will start with an e-commerce pilot. For Macy’s the joint venture is expected to develop significant new learnings on customer preferences and buying patterns within China. Under the joint venture, Macy’s plans to begin selling in China in late 2015 through an e-commerce presence on Alibaba Group’s Tmall Global, their premiere marketplace that connects overseas branded retailers to Chinese consumers. To be based in Hong Kong and called Macy’s China Limited, the Macy’s-Fung joint venture will curate a Macy’s online merchandise assortment especially for Chinese customers and fulfill Tmall Global orders from Hong Kong through local logistics channels, including LF Logistics, an affiliate of Fung Retailing. Alipay will be a primary payment channel for Macy’s e-commerce offerings in China.
Macy's Mulls Acquisitions
Aug 12 15
Macy's, Inc. (NYSE:M) may consider acquisition opportunities. When asked if the company would consider growing by acquisition, Karen Hoguet, Chief Financial Officer of the company said: “I think we have to see how the test goes, but there's lots of ways that we could grow Backstage, whether it be organic, acquisition, within Macy's stores. There's lots of ideas floating, but I don't want to get ahead of our test either.”