Macy's Swings to Profit But Sales Flat

Cincinnati, OH, November 14, 2007- Macy's in the third quarter reported earnings of $33 million, or $0.08 per share, versus a loss of $3 million, or $0.01 per share in the year-ago period. Excluding acquisition integration one-time costs, net income was $0.10 per share.

Sales were flat at $5.91 billion.

Analysts expected earnings of $0.07 per share on revenue of $5.91 billion.

The company reported same-store sales that were off 0.8%.

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 to $8.9 billion, while analysts expect $1.74 per share on revenue of $8.91 billion.

Fourth-quarter same-store sales growth is expected to range from a decline of 2% to an increase of 1% during the quarter.

For fiscal 2007 the company said it expects sales of $26.4 billion to $26.6 billion on a same-store sales decrease of 0.3% to 1.3%. Analysts expect expect sales of $26.65 billion.