Macy's CFO: Holiday season "will be a nailbiter. We don't see an upside in being optimistic."

[Amerigo Vespucci]

As consumers continued to rein in their spending ahead of the crucial holiday shopping season, Macy's reported a third quarter loss of $44 million on Wednesday as Best Buy slashed its profit forecast for 2009.

***

As for the upcoming holiday season, "it will be a nailbiter," Chief Financial Officer Karen Hoguet told analysts in a conference call about Macy's. She also noted that Macy's planned to have inventories for spring and fall 2009 below last year's levels, saying, "We don't see an upside in being optimistic."

Macy's said it lost $44 million, or 10 cents per share, in the quarter, after a profit of $33 million, or 8 cents per share, a year earlier. Excluding costs related to the consolidation of three regional divisions that totaled $16 million — $10 million after tax or 2 cents per share — the third-quarter loss was 8 cents per share.

Sales fell to $5.49 billion from $5.9 billion. Analysts surveyed by Thomson Reuters were expecting, on average, a loss of 19 cents on $5.49 billion in sales.

"Macy's Inc. remains financially healthy, with strong cash flow, a solid balance sheet and ample borrowing capacity," Chairman and Chief Executive Terry J. Lundgren said in a statement. "We are committed to continuing to aggressively manage expenses and inventories consistent with planned sales levels."

Macy's third quarter sales dropped more than 7 percent. Despite its weaker results, the department store has performed better than most of its major competitors in sales at established stores. For October, Macy's reported a same-store sales drop of 6.3 percent, while rival J.C. Penney Co. suffered an 11.8 percent drop and Dillards Inc. saw an 8 percent drop.

Macy's announced a reorganization in February that dispersed more managers to local markets. As part of the plan, the company combined three regional divisions and slashed about 2,300 management jobs.

http://www.msnbc.msn.com/id/27677942/

[maxsolomon]

1. note to retailers:

after consuming at an unsustainable pace for 20+ years, americans are saturated with crap they don't need. and with the widespread layoffs, no one feels secure in their employment anymore. it's going to be worse than you ever imagined.

so, what DO we need?

new underwear. new socks. an interview suit. booze. seed packets. laying chickens. firewood. fishing poles. more ammo. duct tape.

[Amerigo Vespucci]

4. A good friend referred me to a potential client a year ago...

...a local Lounge owner (read: "neighborhood dive bar") who was looking for a Web Site.

At the time, I knew the guy was price shopping and gathering free info on how to get a Web Site up and running. I didn't care for his place, either. So I just let it go and forgot about him after the initial meeting.

A few weeks ago I asked my friend what was going on...the guy never did get a Web Site. He said:

"In his mind, he doesn't need one. In tough times, people drink. He owns a bar. The place is always packed. They have dart tournaments and all kinds of stuff there."

:toast:

[Deja Q]

8. Every time I went to bars, it wasn't as welcoming as you stereotype them to be.

A bit unfortunate, probably...

[Faygo Kid]

6. And this chair. I really need this chair.

[CrispyQ]

7. And make sure those seed packets have some of these types of seeds:

Beats stress better than any pharm drug.

[maxsolomon]

10. we have a different reaction

i become wheels-turning hyper-vigilant unless occupied with a task.

but i hear you. :smoke:

[blue_onyx]

2. It will be a bad holiday shopping season

I bet we'll see a few more stores close down after the New Year. Stores rely on Christmas shopping for much of their revenue. When that money doesn't come in, some stores might not be able to make it. Circuit City, Kmart, the remaining Value City stores, and lots on small independent stores may go down.

[rvablue]

9. Circuit City already filed for bankruptcy yesterday.......n/t

[AlCzervik]

3. My bff works for Macys' in the back office, she's worried.

and i know what she does there in terms of what info she handles so if she's worried there is good reason.

[MichellesBFF]

5. Relatives that work for Macy's

My mom and one of my sister's. So far they haven't said anything, but at least they have seniority.