For the 52 weeks of fiscal 2013, Macy’s, Inc.’s operating income totaled $2.678 billion or 9.6 percent of sales, compared with operating income of $2.661 billion or 9.6 percent of sales for the 53 weeks of fiscal 2012. Macy’s, Inc.’s fiscal 2013 operating income included expenses and asset impairment changes of $88 million associated with previously announced store closings, cost reduction initiatives and related items. Excluding these items, operating income for fiscal 2013 was $2.766 billion or 9.9 percent of sales. Macy’s, Inc.’s fiscal 2012 operating income included asset impairment charges and other costs and expenses of $5 million associated with store closings. Excluding these items, operating income for fiscal 2012 was $2.666 billion or 9.6 percent of sales.
Earnings Per Share
Earnings were $2.16 per diluted share for the 13-week fourth quarter of 2013. Diluted earnings per share were $2.31 in the fourth quarter of 2013, excluding pre-tax expenses and asset impairment charges of $88 million ($54 million after tax or 15 cents per diluted share) associated with previously announced store closings, cost reduction initiatives and related items. The fourth quarter charges of $88 million were lower than the estimate of $120 million to $135 million provided in the company’s Jan. 8 news release on cost reduction initiatives. This was primarily the result of lower severance expense as the company was able to place more associates than expected in new jobs within the company in the course of its workforce reductions.
In the 14-week fourth quarter of 2012, earnings were $1.83 per diluted share. Diluted earnings per share were $2.05 in the fourth quarter of 2012, excluding pre-tax expenses of $133 million ($85 million after tax or 21 cents per share) associated with the early retirement of approximately $700 million of outstanding debt, and asset impairment charges and other costs and expenses of approximately $5 million ($3 million after tax or 1 cent per share) related primarily to store closings.