Macy's Gives Hope for 2010
NEW YORK (
) --
Macy's
(M) - Get Report
is coming out as one of the strongest retailers for back-to-school, as it ups its full-year outlook.
During the second quarter, the department store earned $147 million, or 35 cents a share, compared with $7 million, or 2 cents in the year-ago period. Last year was impacted by 18 cents in restructuring charges. Analysts were calling for a profit of 29 cents a share for Macy's.
Macy's sales jumped 7% to $5.54 billion from $5.16 billion, while same-store sales grew 4.9%.
Looking ahead, Macy's now expects full-year earnings in the range of $1.85 to $1.90 a share, from a prior outlook of $1.75 to $1.80. Same-store sales are forecast to rise 4.2%, compared with previous guidance of a 3.5% increase.
Macy's has, no doubt, been stealing market share away from underperformers like
J.C. Penney
(JCP) - Get Report
. "
Macy's has been driven by a number of its strategic initiatives, including My Macy's, a centralized organization, continued development of private and exclusive brands, improved associate selling and service skills, and multi-channel integration," Citibank analyst Deborah Weinswig wrote in a note.
Shares of Macy's are rising 4% to $20.16 in morning trading.
-- Reported by Jeanine Poggi in New York.
Follow TheStreet.com on
and become a fan on
