Macy's Posts Smaller 3Q Loss, Raises Outlook

ANNE D'INNOCENZIO

NEW YORK (AP) — Macy's Inc.'s third-quarter loss shrunk as tight inventory controls and a move to localize merchandise at its department stores by region paid off. The company also raised its full-year profit and sales outlook.

The profit outlook, including a tempered forecast for the fourth quarter, didn't go as high as analysts expected, and shares fell $1.57, or more than 8 percent, to close at $17.86.

In a conference call with investors Wednesday morning, Karen Hoguet, chief financial officer at Macy's, said that while she's encouraged by improving sales, she warned that there's still plenty of uncertainty heading into the holiday season.

"We are just going to have to wait and see," Hoguet said. "All of us need to be careful not to judge based on one day, one week or even one month's business."

Some of Macy's best-performing districts were the original test beds for the locally tailored merchandise. Other bright spots were its growing Internet business and rebounding sales performance at Bloomingdale's, another sign that affluent shoppers are slowly going back to shopping after a sudden retreat last fall.