MACY’S ONGOING NET GAINS 69.8% IN SEPT.

NEW YORK — R.H. Macy & Co. reported Monday that earnings in September, before interest, taxes, depreciation and amortization, increased 69.8 percent as cuts in operating expenses continued to pump up the bottom line.
The company also named James E. Gray, president of Federated Department Stores’ 45-store Burdines division since 1988, as president and chief operating officer of Macy’s East, succeeding Burnett Donoho. Gray, who takes over in December, will report to Hal Kahn, chairman and ceo of Macy’s East.
Macy’s said EBITDA for the five weeks ended Oct. 1 rose to $42.8 million from $25.2 million last year. On an operating basis, the department store reported a profit of $13.9 million against a loss of $600,000.
Michael J. Osborn, former senior vice president for store operations at Burdines, will succeed Gray and report to Howard Socol, Burdines chairman and ceo. Osborn has been vice president of Federated’s Stern’s division for the past 16 months.
As for Macy’s improving bottom line, cost-cutting continued to play a pivotal role. More than half the operating improvement in the month, or $8.1 million, represented cuts in selling, general and administrative expenses, which fell 4.8 percent in the month.
Interest expense, reorganizational items and an income tax benefit resulted in a net loss of $7.9 million compared to a loss of $31 million.
Sales in the period increased 3.6 percent to $573.7 million from $553.8 million. Adjusted comparable-store sales, which take into account the restructured electronics business and closed stores, gained 4.1 percent.
Sales were strongest in the Los Angeles, Sacramento, Calif., and southern New Jersey/Philadelphia markets, the retailer said.
— Fairchild News Service

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