Macy's (M) Prelim. FY14 EPS Tops Expectations

Macy's (NYSE: M) reported preliminary earnings per share for the full-year 2014 that are above previous guidance, as well as fourth quarter 2014 comparable sales consistent with expectations.

(Editor’s Note: Macy’s, Inc. this afternoon also issued separate news releases announcing senior executive appointments to develop and drive growth strategies and an agreement to acquire Bluemercury, Inc.)

“We are very pleased with our fourth quarter performance, which represents a strengthening trend from the third quarter and spring season,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “In particular, we believe that we have an excellent foundation on which to continue to grow sales and earnings, as described in last month’s moves to restructure our merchandising and marketing organizations, and today’s announcements on new senior executive appointments and the agreement to acquire Bluemercury, Inc.”

The company currently expects full-year 2014 earnings of between $4.35 and $4.37 per diluted share, which is higher than guidance (revised on Jan. 8, 2015) in the range of $4.25 to $4.35 per diluted share. This estimate excludes charges of approximately $100 million to $110 million related to the previously announced merchandising and marketing restructuring, store and field adjustments, store closings and asset impairment charges, as well as approximately $17 million of interest expense related to the make-whole premium for the previously announced early retirement of debt.

*** The Street consensus is at FY15 EPS of $4.35.

Comparable sales growth on an owned plus licensed basis in the fourth quarter of 2014 was 2.5 percent (in line with guidance provided on Jan. 8, 2015, of 2.5 percent to 3 percent). This calculates to growth in comparable sales on an owned plus licensed basis in the full-year 2014 of 1.4 percent. On an owned basis, fourth quarter comparable sales were 2.0 percent, (in line with previous guidance of 1.9 percent to 2.4 percent). This calculates to growth of comparable sales on an annual basis of 0.7 percent on an owned basis.

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