First-quarter earnings for May Department Stores fell from the same period last year, the company said.
Earnings per share for the first-quarter were 13 cents, compared with 24 cents per share last year. Net earnings were $41 million, compared with net earnings of $76 million last year.
This was a result of weak sales of its proprietary ladies’ and men’s apparel brands as well as expenses.
“Our 2005 first quarter results did not meet our expectations,” said John Dunham, May’s chairman, president and chief executive officer. “Sales of our proprietary ladies’ and men’s apparel brands were among our weakest performing categories, and during the quarter we took incremental markdowns to keep our proprietary apparel inventories current.”
In a press release, the company explains:
The integration of Marshall Field’s continues on track and all system conversions were completed in April 2005. First quarter 2005 earnings include Marshall Field’s start-up integration expenses of $21 million, or 5 cents per share. Net sales for the 2005 first quarter were $3.37 billion, an increase of 13.7%, compared with $2.96 billion in the 2004 first quarter. Store-for- store sales decreased 5.1% for the quarter.
May opened one new department store during the 2005 first quarter: a Robinsons-May store in El Centro, Calif. Seven additional department stores are planned for 2005: three Foley’s stores in Loveland, Colo., and San Antonio and Dallas/Fort Worth, Texas; two Kaufmann’s stores in Pittsburgh, Pa., and Columbus, Ohio; a Robinsons-May store in Simi Valley, Calif.; and a Hecht’s store in N. Charlotte, N.C.
May’s Bridal Group opened two David’s Bridal stores and six After Hours Formalwear stores in the first quarter. The Bridal Group plans to open an additional 16 David’s Bridal stores and 14 After Hours stores by year-end.
May operated 490 department stores in 46 states, the District of Columbia, and Puerto Rico at the end of the quarter.
Federated Department Stores is buying May for $11 billion. May recorded about $4 million of merger-related expenses in the 2005 first quarter. The merger is expected to be complete in the third quarter.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.