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NEW YORK, United States — Macy's Inc., the second-largest U.S. department-store company, said first-quarter revenue fell 1.7 percent as inclement weather kept shoppers out of stores and one of its major sales events was moved to a later quarter.
Revenue in the three months through May 3 slid to $6.28 billion, the Cincinnati-based company said today in a statement. Analysts estimated $6.47 billion, on average.
Sluggish mall traffic, unfavorable weather and steeper discounts plagued retailers for most of the first quarter, Michael Binetti, an analyst with UBS AG in New York, wrote in a May 12 report. Macy’s also said today that the shift of a portion of its annual “Friends & Family” sale into May from April damped sales.
Net income rose 3.2 percent to $224 million, or 60 cents a share, from $217 million, or 55 cents, a year earlier, Macy’s said. Analysts projected profit of 60 cents.
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Macy’s also reiterated its forecast for earnings per share of $4.40 to $4.50 for the year through January 2015. Analysts estimate $4.46.
The shares rose 0.6 percent to $58.20 at 8:11 a.m. in early trading in New York. The retailer’s stock climbed 8.3 percent this year through yesterday, compared with a 2.7 percent increase in the Standard & Poor’s 500 Index.
Binetti has the equivalent of a hold rating on the shares.
By Cotten Timberlake; Editors: Nick Turner, Kevin Orland, James Callan