NEW YORK — May Department Stores Co. said Monday that it posted its “highest” first-quarter profits ever — a 16.7 percent jump in earnings for the period ended April 30.
Earnings rose to $112 million, or 43 cents a share, from $96 million, or 37 cents. Per-share earnings were also a record.
David C. Farrell, chairman and chief executive officer, said the record-setting results were boosted by last year’s streamlining efforts. Among the consolidations, the May D&F division was merged into the Foley’s chain, and the May Merchandising unit moved from New York to St. Louis, where May Co. is based.
During the quarter, sales rose 11.4 percent, to $2.5 billion from $2.27 billion, and same-store sales rose 7.7 percent.
The department store division posted a 10.9 percent increase, to $2 billion, with same-store sales up 8.2 percent.
The Payless ShoeSource division was up 13.1 percent, to $517 million, with same-store sales up 6 percent.
David Poneman, retail analyst at Sanford C. Bernstein, attributed May Co.’s big quarter to market share gains and good leveraging of selling, general and administrative expenses. He also noted that since last year, May Co. has gradually refinanced high-rate debt, which also strengthened the quarter. Poneman estimated earnings per share of 51 cents for the second quarter, up about 15 percent from year-ago results.
For several weeks, rumors have persisted that May Co. is considering acquiring Mercantile Stores, another department store operator, which is based in Fairfield, Ohio.
May Co. declined comment Monday, but a Mercantile spokesman denied the rumors. He said the company is not interested in selling and noted that Mercantile’s stock is closely held by the Milliken family. A sale would require the family’s approval.
May Co., however, is expansion-minded. The company said it plans to open 15 department stores this fall, including five Lord & Taylor units, four Filene’s, two each for Foley’s and Famous-Barr, and one each for Robinsons-May and Hecht’s.