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Macy's reports loss on weak sales, restructuring
Despite a $59 million loss and a slump in sales in the first quarter, Macy's Inc. on Wednesday posted results that beat Wall Street expectations because of what analysts said were tight controls on expenses and inventories.

The loss resulted from lower sales and the cost of consolidating business units, Macy's said.

Losses totaled 14 cents a share in the three months ended May 3, compared with a profit of $36 million, or 8 cents a share, in the same quarter a year ago, Macy's said. Revenue was $5.75 billion, down from $5.92 billion a year ago.

Macy's booked a $55 million after-tax charge, or 13 cents a share, for the restructuring that the retailer said should start saving money next year. Macy's also set aside $14 million after tax, or 3 cents per share, for a potential settlement of a wage and hour class-action lawsuit in California.

Stripping out unusual charges, earnings from continuing operations were 2 cents a share, Macy's said.

Analysts polled by Thomson Financial forecast a loss of 2 cents a share on revenue of $5.6 billion. Analyst forecasts typically exclude one-time charges and gains.

Macy's shares rose 87 cents, or 3.6 percent, to $24.93 Wednesday. Shares have traded between $20.94 and $45.50 over the past 52 weeks.

Goldman Sachs analyst Adrianne Shapira said Macy's delivered the better-than-expected results "primarily as a result of leaner inventory levels and tight expense control."
http://www.mercurynews.com/copyright/ci_9254922