Macy’s reported second quarter 2017 earnings per diluted share of 38 cents, or 48 cents per share excluding non-cash retirement plan settlement charges and net premiums and fees associated with debt repurchases.
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This compares with 3 cents per share in the second quarter of 2016, or 54 cents excluding asset impairment and other charges primarily related to store closings and non-cash settlement charges.
Sales in the second quarter of 2017 totaled $5.552 billion, a decrease of 5.4 percent, compared with sales of $5.866 billion in the second quarter of 2016.
The year-over-year decline in total sales reflects, in part, the closure of stores previously announced by the company.
Comparable sales on an owned basis were down 2.8 percent in the second quarter and down 2.5 percent on an owned plus licensed basis.
Year to date, Macy’s, Inc.’s sales totaled $10.890 billion, down 6.4 percent from total sales of $11.637 billion in the first half of 2016. Comparable sales on an owned basis were down 4.0 percent in the first half of 2017 and down 3.6 percent on an owned plus licensed basis.
Macy’s, Inc.’s operating income totaled $254 million or 4.6 percent of sales for the second quarter of 2017 compared to $117 million, or 2.0 percent of sales for the second quarter of 2016.
Excluding non-cash settlement charges of $51 million, operating income for the second quarter of 2017 totaled $305 million or 5.5 percent of sales.
Excluding asset impairment and other charges primarily related to store closings of $249 million and non-cash settlement charges of $6 million, operating income for the second quarter of 2016 totaled $372 million or 6.4 percent of sales.
For the first half of 2017, Macy’s, Inc.’s operating income totaled $474 million or 4.4 percent of sales compared to $393 million or 3.4 percent of sales for the first half of 2016.
Excluding non-cash settlement charges of $51 million, operating income for the first half of 2017 totaled $525 million or 4.8 percent of sales.
Excluding asset impairment and other charges of $249 million and non-cash settlement charges of $19 million, operating income for the first half of 2016 totaled $661 million or 5.7 percent of sales.
Operating income for the second quarter included $43 million in book gains related to the sales of real estate compared to $21 million in the second quarter of 2016.
For the first half of 2017, operating income included $111 million in book gains related to the sales of real estate compared to $35 million in the first half of 2016.
Net cash provided by operating activities was $536 million in the first half of 2017, compared with $560 million in the first half of 2016.
Net cash used by investing activities in the first half of 2017 was $213 million, compared with $338 million in the first half of 2016.
Operating cash flows net of investing were $323 million in the first half of 2017, compared with $222 million in the first half of 2016.
The company repurchased approximately $101 million face value of senior notes and debentures in the second quarter of 2017.
The debt repurchases were made in the open market for a total cost of approximately $108 million, including expenses related to the transactions.
For the first half of 2017, the company repurchased approximately $247 million face value of senior notes and debentures at a total cost of approximately $257 million.
During the quarter, the company repaid at maturity $300 million of 7.45 percent senior debentures, due July 2017. ■