Macy’s Q3 profit up 4.3%, beats estimates; to stop reporting monthly sales
Cincinnati – Macy’s on Wednesday reported a better-than-expected 4.3% increase in third-quarter net income, helped by sales gains, and slightly raised its full-year profit outlook.
Macy’s also announced that it will discontinue reporting monthly sales, beginning in fiscal 2013. Sales will continue to be reported quarterly, along with earnings and cash flow.
The retailer posted net income of $145 million for the quarter ended Oct. 27, up from $139 million a year earlier. Sales in the third quarter rose 3.8% to $6.075 billion, from total sales of $5.853 billion in third quarter 2011. Same-store sales were up 3.7%.
“We were pleased to deliver sales and earnings growth for the 11th consecutive quarter,” said Terry J. Lundgren, chairman, president and CEO of Macy’s. “Our success in the third quarter reflected a combination of factors, as has been the case over the past several years. We continue to implement our My Macy’s localization, omnichannel integration and enhanced customer engagement strategies with increasing precision, passion and success.”
Lundgren expressed confidence about sales and profit growth in the holiday quarter despite the impact of Hurricane Sandy. The chain also said that nearly one quarter of its stores suffered a disruption of some sort last week due to the hurricane.
“We have confidence in our ability to continue to grow sales and earnings in the fourth quarter, even taking into account a recovery from Hurricane Sandy that will cause stress to consumers and our employees in the Northeast and Mid-Atlantic regions," said Lundgren.
Online sales (Macys.com and Bloomingdales.com combined) were up 40.4% in the third quarter and 36.8% year to date, compared with the same periods in 2011.
In the third quarter, the company opened new Bloomingdale’s Outlet stores, as previously announced, in Westbury, N.Y., and Grand Prairie, Texas. A third Bloomingdale’s Outlet store, in Livermore, Calif., is opening in the second week of the fourth quarter.
VeriFone Systems, Fujitsu offer enhanced mobile solutions for retailers
SUNNYVALE, Calif. and SAN JOSE, Calif. — VeriFone Systems and Fujitsu have partnered to offer retailers sophisticated mobile retailing solutions powered by VeriFone GlobalBay and integrated with the Fujitsu GlobalSTORE solution, or as a standalone mobile point of sale.
The co-branded solutions provide Fujitsu retail customers with a sophisticated mobile POS, enabling retailers to serve consumers from anywhere in the store, the companies said. They feature support for advanced mobile payment acceptance, including digital wallets and alternative payments.
“Mobile is a rapidly changing world for retailers, and the VeriFone GlobalBay offering was the clear choice to keep us ahead of the curve,” said Brian Yates, director retail product marketing for Fujitsu America. “Fujitsu’s integrated solutions provide the ability for VeriFone to leverage the same pricing, promotions and business logic capabilities as a retailer’s traditional GlobalSTORE Point of Sale terminals, from mobile devices.”
MasterCard, ING test mobile payment service in the Netherlands
PURCHASE, N.Y. and AMSTERDAM — MasterCard and ING Group are testing a new online payment program in the Netherlands.
The companies ar testing the ability for customers to use MasterCard’s PayPass application on their mobile phone to make a purchase either in store or online.
The solution being tested in the trial supports two scenarios: first, shopping and paying on a phone where the consumer is able to select merchandise they want to purchase, select their payment method, provide their shipping information and enter their PIN to authenticate the transaction. An EMV-compliant cryptogram is supplied by the phone directly to the merchant’s payment gateway for processing. In the second scenario, the consumer is able to start their shopping on a PC or tablet, and then complete the payment step on their phone using a secure QR code that connects the Mobile PayPass application in the user’s phone securely to the merchant’s online shopping cart.
In both cases, coupons and vouchers can be applied in real-time as the consumer shops, and e-receipts presented upon successful payment. The trial promises to deliver a similar user experience in both the physical and digital world and a comparable level of security to a regular EMV transaction.
“This innovative mobile payment product enables ING to offer our customers a one-click-buy experience. The trial allows us to explore which new type of mobile payments products and technologies will meet our client’ needs,” said Mark Buitenhek, global head payments and cash management at ING Group. “Working with MasterCard on this trial is in line with our international payments strategy to introduce standardized and internationally accepted payment products that offer a high level of security and convenience.”
The trial, which began in mid-October, will run through the first quarter of 2013.