Macy’s reports $23M 1st-quarter earnings

Staff/wire report

CINCINNATI

Macy’s Inc. returned to profitability in the first quarter, exceeding expectations as its efforts to tailor its merchandise to local markets helped drive sales.

The Cincinnati-based department-store operator reported Tuesday the company’s first-quarter net income was $23 million, or 5 cents per share. The earnings represent a substantial improvement compared with a loss of $88 million, or 21 cents per share, in the same period last year.

Revenue reached $5.57 billion in the quarter, up from $5.19 billion in the first quarter of 2009.

Stores open at least a year saw revenues rise 5.5 percent. The measure is a key indicator of a retailer’s health because it excludes the effects of expansion.

“Our first-quarter earnings were well ahead of what we originally expected,” Terry Lundgren, the company’s chairman and chief executive, said in a statement. “Macy’s and Bloomingdale’s both had an excellent quarter and outperformed most of their key competitors.”

The company declined to boost its outlook for the rest of 2010, citing continued economic uncertainty.

“While the direction of the overall economy remains unclear, we believe we are well-positioned to continue to gain market share,” Lund- gren said.

The company plans to expand its brands this year with expanded online strategies and five new Bloomingdale’s locations, Lund- gren added.

Macy’s has stores in the Southern Park Mall in Boardman and the Eastwood Mall in Niles.