Macy’s, Inc. (NYSE:M), the second largest department store chain in the United States posted strong financial results for the fourth quarter and for the entire year. The stock price of the company surged by nearly 3 percent to $39.50 per share around 11:30 AM on Tuesday.
During the fourth quarter, the company said its earnings were $1.83 per diluted share while its earnings for 2012 were $3.24 per diluted share. Macy’s, Inc. (NYSE:M) reported $9.35 billion revenue, a 7.2 percent increase from its $8.72 billion sales during the same period a year ago.
For 2012, the department store chain said its total revenue was $26.40 billion, 4.9 percent higher than its total revenue in 2011. According to
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Macy’s, Inc. (NYSE:M) said its online sales increased by 47.7 percent during the three-month period and 41 percent for the entire year. The company said it opened seven stores and closed eight stores in 2012.
Its operating income during the quarter was $1.39 billion or 14.9 percent of sales. During the same period a year earlier, its operating income was $1.28 billion. For 2012, its total operating income was $2.66 billion, higher than its $2.41 billion operating income in 2011.
According to Terry Lundgrem, chairman, president, and chief executive officer of the Macy’s, Inc. (NYSE:M), the strong financial performance of the company in 2012 shows that the strategies implemented by the company is successful.
“We again added more than $1 billion in top-line sales growth in 2012. Comp sales rose by 3.7 percent for the year, on top of increases of 5.3 percent in 2011 and 4.6 percent in 2010. Earnings per share grew by double-digits for the fourth consecutive year. Operating cash flow continued to be strong, and we used excess cash to repurchase shares and double the dividend,” Lundgren said.
Based on its financial statement, Macy’s, Inc. (NYSE:M) had $2.26 billion net cash by the end of 2012 compared with its $2.09 billion net cash during the previous year.
The company said it repaid $1.83 billion debt and issued $1 billion new debt in fiscal 2012. Macy’s repurchased 35.6 million shares with a market value of approximately $1.35 billion.
For the fiscal 2013, Macy’s expects to achieve $3.90 to $3.95 earnings per diluted share. The company estimated its capital expenditures for the year to be around $925 million. The department store chain also plans to open new stores in different locations.