Macy’s Profits Tumble in Fourth Quarter

Cincinnati, OH, Feb. 24, 2009–Macy’s Inc. said its fourth quarter profits fell almost 59 percent.

Macy’s said that in the three months ended Jan. 31, it earned $310 million, or 73 cents per share. That compares with $750 million, or $1.73 per share, a year earlier.

Sales fell 7.7 percent to $7.93 billion from $8.59 billion a year ago. Same-store sales, or sales at stores opened at least a year, fell 7 percent. Same-store sales are considered a key indicator of a retailer’s health.

Department stores such as Macy’s are facing big challenges as shoppers — worried about their shrinking retirement funds and job security amid massive layoffs — are in full retreat and focusing on basics like food.