Macy’s Q1 EPS down to 37 cents from 56 centsStaff writer ▼ | May 11, 2016
Macy’s reported first quarter 2016 earnings of 37 cents per diluted share (40 cents per share excluding non-cash settlement charges related to the company’s retirement plans).
Retail Sales in Q1 2016 totaled $5.771 billion
Sales in the first quarter of 2016 totaled $5.771 billion, a decrease of 7.4 percent, compared with sales of $6.232 billion in the same period last year. The year-over-year decline in total sales reflects, in part, the 41 stores closed in 2015.
Comparable sales on an owned plus licensed basis were down by 5.6 percent in the first quarter. On an owned basis, first quarter comparable sales declined by 6.1 percent.
In the first quarter, seven new freestanding Bluemercury beauty specialty stores were opened, and a Macy’s jewelry specialty store was closed in Honolulu, HI, with the business transferred into the full-line Macy’s store in the same mall.
Macy’s, Inc.’s operating income totaled $276 million or 4.8 percent of sales for the first quarter of 2016, compared to $409 million or 6.6 percent of sales for the same period in 2015.
The $276 million included non-cash settlement charges of $13 million ($9 million after tax, or 3 cents per diluted share) related to the company’s retirement plans.
Excluding this item, operating income for the first quarter of 2016 was $289 million or 5.0 percent of sales.
Net cash provided by operating activities was $8 million in the first quarter of 2016, compared with $53 million in the first quarter last year. Net cash used by investing activities in the first quarter of 2016 was $211 million, compared with $381 million a year ago.
Investing activities in the first quarter of 2015 included the acquisition of Bluemercury. Net cash used by financing activities in the first quarter of 2016 was $172 million, compared with $409 million last year.
The company repurchased approximately 3.0 million shares of its common stock for a total of approximately $129 million in the first quarter of 2016.
This brings the remaining authorization outstanding, as of the end of the first quarter on April 30, 2016, to approximately $1.9 billion, which the company can use to purchase common shares in the open market, in privately negotiated transactions or otherwise at any time and from time to time without prior notice.
On May 6, 2016, the company entered into a new $1.5 billion, five-year Credit Agreement that will mature on May 6, 2021. It replaces a previous $1.5 billion facility maturing in May 2018.
Given Macy’s, Inc.’s strong balance sheet, the company was able to extend the maturity of the agreement on similar terms. ■