Macy’s Swings to $44M Loss in 3Q
New York City Macy’s Inc. swung to a loss in the third quarter as sales dropped more than 7% amid a sharp slowdown in consumer spending.
The company also said it slashed its budget for 2009 capital expenditures by almost half.
However, the chain reiterated its profit outlook, adding it would be at the lower end of the range if current sales trends continue.
Macy’s said it lost $44 million in the quarter, after a profit of $33 million a year earlier.
Sales fell to $5.49 billion from $5.9 billion a year earlier.
“Macy’s Inc. remains financially healthy, with strong cash flow, a solid balance sheet and ample borrowing capacity. We are committed to continuing to aggressively manage expenses and inventories consistent with planned sales levels,” said Terry J. Lundgren, chairman, president and CEO in a statement.
Lundgren added that even in what he describes as a “poor economic environment,” he is confident in the company’s strategies for gaining market share, particularly as it increases effort to localize store inventories, is yielding “promising early results.” He expects that strategy to have a more profound impact in 2009.
Sam’s Club gives special savings to military personnel
BENTONVILLE, Ark. Sam’s Club announced that it will waive its 10% non-member service fee for non-member purchases for military personnel who visit any of the 598 Sam’s Club locations hosting military open houses on Nov. 17, Dec. 1 and Dec. 15.
To kick off the event, Sam’s Club is offering a holiday greeting card photo session Nov. 17 in Annapolis, Md., Atlanta, Colorado Springs, Colo., Fayetteville, N.C. and Jacksonville, N.C. as well as in Norfolk, Va., Pearl City, Hawaii, San Antonio, San Diego and Woodbridge, Va. Military personnel and their families can get their photo taken by a professional photographer with a Nikon® DSLR camera against a “magical green screen,” depicting several holiday and patriotic themed backdrops, provided by Nikon. Participating military personnel will also receive free 30 complimentary 4 inch by 8 inch greeting cards from Sam’s Club in these locations, a $10.50 value per order.