Quarterly Profits Jump at May Stores, Woolworth
The retail industry showed further signs of recovery from the recession Monday as May Department Stores Co. reported a nearly 16% gain in second-quarter earnings, and Woolworth Corp. said its profit jumped 57%.
Jeffrey Edelman, an analyst at C. J. Lawrence Inc., said the higher earnings were expected and did not reflect a major turnaround in the retail industry. But he added: “Sales have been improving gradually, and I think we’ll continue to see that.â€
May earned $393 million, or $3.13 per share, in the quarter ended Aug. 1, compared to $82 million, or 62 cents, for the same period a year ago.
Results were boosted by a non-recurring gain of $298 million from the sale of May’s interest in a shopping center partnership. Excluding that gain, the company earned $95 million, or 71 cents per share, a 15.9% profit increase.
Sales totaled $2.4 billion, compared to $2.23 billion for the same period last year.
May’s stores include Lord & Taylor, Hecht’s, May Co., Filene’s and Foley’s. The company also operates Payless ShoeSource stores.
Woolworth earnings rose to $33 million, or 25 cents per share, in the quarter ended July 25, from $21 million, or 16 cents, in the year-earlier period.
Revenue edged up slightly to $2.23 billion from $2.22 billion.
Woolworth said specialty store sales rose 1.5%, while general merchandise sales fell 1.3%.
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