Macy’s, Home Depot offer upbeat sales predictions
Retailers Home Depot Inc. and Macy’s Inc. are forecast rising sales this year, while saying they don’t expect the economy to bounce back immediately.
“We recognize that we have more work to do as a company and that the economy is not out of the woods yet, particularly in our market, so we’re not projecting robust growth,’’ Home Depot chief executive Frank Blake said yesterday.
Retailers face a slump in consumer confidence, which fell to its lowest in 10 months in February. Yet a stabilizing housing market has led to some sales improvements in areas including kitchen, flooring and plumbing, according to Home Depot and Lowe’s Cos., the two largest US home-improvement retailers.
Sales at Home Depot stores open at least a year will rise about 2.5 percent in 2010 after dropping 6.6 percent last year, the company said. Macy’s said same-store sales will rise as much as 2 percent, after slumping 5.3 percent in 2009.
“Business feels better, there is no question about it,’’ Macy’s chief executive, Terry J. Lundgren, said. “We still have high unemployment, and I still see tight credit on consumers.’’
“The retailers are controlling what they can control, which is expenses, and positioning themselves strategically for what everyone calls the new normal, with consumers looking for lower prices,’’ said Doug Conn, managing director at Hexagon Securities in New York. “The growth for these companies is very slow on the top line and may take a while to recover.’’
Lowe’s said sales in stores open at least 13 months may advance as much as 3 percent this year. Nordstrom Inc. forecast same-store sales growth of as much as 4 percent.
Target Corp., the second-largest US discount chain, said fourth-quarter profit rose 54 percent, helped by holiday sales and groceries. Net income advanced to $936 million, or $1.24 a share, from $609 million, or 81 cents, a year earlier.
Target expects “a continued modest recovery in the economy,’’ CEO Gregg Steinhafel said.
At Home Depot, net income totaled $342 million, or 20 cents a share, in the three months ended Jan. 31, compared with a loss of $54 million, or 3 cents, a year earlier, the company said. Excluding some items, earnings were 24 cents a share, beating the 16 cent average of 25 estimates compiled by Bloomberg.
Macy’s posted a profit in the fourth quarter after holding down expenses and benefiting from a tax settlement. Net income totaled $466 million, or $1.10 a share, in three months ended Jan. 30, the department store chain said.
At Sears Holdings Corp., revenue for the quarter ended Jan. 30 fell less than 1 percent, to $13.2 billion, from a year earlier.
Barnes & Noble Inc. reported its third-quarter profit fell and predicted a wider fourth-quarter loss than analysts expected. The fourth-quarter loss will be 85 cents to $1.15 a share, the company said. Analysts estimated a loss of 61 cents.
http://www.boston.com/business/articles/2010/02/24/macys_home_depot_offer_upbeat_sales_predictions/