Macy's Profits Tumble in Fourth Quarter

Cincinnati, OH, Feb. 24, 2009--Macy's Inc. said its fourth quarter profits fell almost 59 percent.

Macy's said that in the three months ended Jan. 31, it earned $310 million, or 73 cents per share. That compares with $750 million, or $1.73 per share, a year earlier.

Sales fell 7.7 percent to $7.93 billion from $8.59 billion a year ago. Same-store sales, or sales at stores opened at least a year, fell 7 percent. Same-store sales are considered a key indicator of a retailer's health.

Department stores such as Macy's are facing big challenges as shoppers -- worried about their shrinking retirement funds and job security amid massive layoffs -- are in full retreat and focusing on basics like food.