Macy's profit for 3rd-quarter rises

Macy's Inc. swung to a profit of $33 million (€22.45 million) in the third quarter unlike to a slim loss a year ago.

Photo: Macy's profit for 3rd-quarter rises

Earnings adjusted for one-time costs were at the high end of the company's forecasts, and its shares rose almost 3 percent in premarket trading.

Net income for the quarter ended Nov. 3 amounted to 8 cents per share versus a year-ago loss of $3 million, or a penny per share.

Revenue was flat at $5.91 billion (€4.02 billion), as previously reported.

Excluding one-time acquisition integration costs, the company said it earned 10 cents per share.

Macy's had predicted earnings of 5 cents to 10 cents per share, excluding one-time costs.

Analysts polled by Thomson Financial expected earnings of 7 cents per share on revenue of $5.91 billion (€4.02 billion). The estimates typically exclude one-time items.

Same-store sales fell 0.8 percent. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance.

Macy's expects net income, excluding one-time costs, will be $1.70 to $1.80 per share in the fourth quarter on revenue of $8.7 billion (€5.92 billion) to $8.9 billion (€6.05 billion), while analysts expect $1.74 per share on revenue of $8.91 billion (€6.06 billion).

Fourth-quarter same-store sales are expected to range from down 2 percent to up 1 percent during the quarter.

For fiscal 2007, the company predicts revenue of $26.4 billion (€17.96 billion) to $26.6 billion (€18.1 billion) with same-store sales falling by between 0.3 percent and 1.3 percent. Analysts expect revenue of $26.65 billion (€18.13 billion).

Macy's shares rose 85 cents, or 2.8 percent, to $31.50 in premarket trading after closing at $30.65 on Tuesday.