Is Dawn Starting To Break At Macy's?
R. H. Macy may be turning the corner. On Feb. 25, the retailer announced that even though sales fell 9.4% from a year earlier for the quarter ended Feb. 2, losses amounted to only $7.3 million before an extraordinary gain of $85.3 million. For the same quarter last year, the company lost $39 million. This quarter's extraordinary gain came from retiring what company sources say was roughly $200 million worth of junk bonds. Including the gain, Macy's second-quarter net income was $78 million.
Macy's also announced plans to spend at least $150 million on television advertising in 1992--five times what it spent in 1990. And it expects to reduce its $5.4 billion debt load by $2 billion by yearend.