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Macy's Q3 profit sinks 86 percent

Staff Writer | November 10, 2016
Macy's reported an 86 percent fall in third-quarter profit from last year, reflecting one-time charges and lower sales.
Retail   Net income was $17 million
The company's third-quarter net income was $17 million or $0.05 per share, down sharply from $118 million or $0.36 per share in the prior-year quarter.

The latest quarter's results include non-cash retirement plan settlement charges of $0.12 per share, while the year-ago period results include asset impairment charges of $0.20 per share.

Excluding these, adjusted earnings were $0.17 per share, compared to $0.56 per share last year. Analysts expected earnings of $0.41 per share.

Net sales declined 4.2 percent to $5.63 billion from $5.87 billion in the year-ago period and missed analysts' consensus estimate of $5.65 billion. The year-over-year decline in total sales largely reflects the closing of 41 underperforming stores in 2015.

Comparable sales growth, on an owned plus licensed basis, declined 2.7 percent. On an owned basis, comparable sales declined by 3.3 percent.

For fiscal 2016, Macy's affirmed its outlook for earnings of $3.15 to $3.40 per share, excluding asset impairment charges and retirement settlement charges.