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THE MAY DEPARTMENT STORES COMPANY REPORTS FIRST QUARTER EARNINGS OF $.71 PER SHARE, UP 18 PERCENT

 ST. LOUIS, May 10 /PRNewswire/ -- The May Department Stores Company (NYSE: MA) today reported fully diluted earnings per share of $.71 for the first quarter of 1993, the 13 weeks ended May 1, an 18 percent increase from $.60 per share in the year-ago period. Net earnings were $96 million for the quarter compared to $81 million in the similar quarter last year. Net retail sales for the first quarter were $2.32 billion, up 5.3 percent from $2.20 billion in the 1992 first quarter.
 David C. Farrell, May chairman and chief executive officer, said, "We are pleased with our 18 percent increase in earnings per share for the first quarter. In a period of cautious consumer spending and low economic growth, our organization performed well to achieve this result."
 During the first quarter, May opened a new Hecht's department store at Virginia Commons in Richmond, Va. Payless ShoeSource opened 16 net new stores during the quarter. For the balance of 1993, May plans to open an additional 12 department stores and more than 200 Payless ShoeSource stores.
 The May Department Stores Company is the largest department store retailer in the United States, operating 302 department stores and 3,579 Payless ShoeSource stores at the end of the first quarter.
 THE MAY DEPARTMENT STORES COMPANY
 CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
 (Unaudited)
 (Millions, except per share) 13 Weeks Ended
 May 1, 1993 May 2, 1992
 Percent to Percent to
 $ Revenues $ Revenues
 Net Retail Sales:
 Department stores $ 1,864 $ 1,775
 Payless ShoeSource 457 429
 Total Net Retail Sales $ 2,321 $ 2,204
 Revenues $ 2,422 $ 2,388
 Cost of sales 1,683 69.5 pct. 1,668 69.8 pct.
 Selling, general and
 administrative expenses 517 21.3 508 21.3(A)
 Interest expense, net 63 2.6 82 3.5(A)
 Earnings before income taxes 159 6.6 130 5.4
 Provision for income taxes 63 39.4(B) 49 37.8(B)(A)
 Net Earnings $ 96 4.0 pct. $ 81 3.4 pct.
 Primary Earnings per Share $ .74 $ .61
 Fully Diluted Earnings
 per Share $ .71 $ .60
 Dividends Paid
 per Common Share $.41-1/2 $.40-1/2
 Primary Average Shares
 and Equivalents 124.9 124.3
 Fully Diluted Average Shares
 and Equivalents 132.8 132.2
 (B) Percent represents effective income tax rate
 (A) On May 18, 1992 the May Center Associates (MCA) partnership was dissolved. Adjusting the 1992 first quarter as if the MCA partnership had been dissolved on the first day of fiscal 1992, the percent to revenues of selling, general and administrative expenses and interest expense, and the effective income tax rate would have been 21.5 percent, 2.8 percent and 39.0 percent, respectively.
 Net Retail Sales - Percent Change versus Last Year
 Net retail sales represent the sales of stores operating at the end of the latest period. They exclude finance charge revenue and the sales of stores which have been closed and not replaced. Store-for-store sales represent sales of those stores open during both periods.
 13 Weeks
 Ended May 1, 1993
 Total Store-for-Store
 Department stores 5.0 percent 3.8 percent
 Payless ShoeSource 6.5 percent (1.5) percent
 Total 5.3 percent 2.8 percent
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 NOTES TO CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
 Interim Results. The unaudited condensed consolidated results of operations have been prepared in accordance with the company's accounting policies as described in the 1992 Annual Report to Shareowners and should be read in conjunction with that report. In the opinion of management, this information is fairly presented and all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods have been included; however, certain items are included in this statement based on estimates for the entire year. Also, operating results of periods which exclude the Christmas season may not be indicative of the operating results that may be expected for the full fiscal year.
 Inventories. Department store merchandise inventories are stated on the LIFO (last-in, first-out) cost basis. The LIFO provision was $8 million in the 1993 first quarter compared to $7 million in the 1992 first quarter.
 Income Taxes. In the 1993 first quarter, the company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." The cumulative effect of the adoption of SFAS No. 109 at the beginning of 1993 was insignificant and, therefore, no adjustments were reflected in the financial statements.
 Trailing Years' Results. Operating results for the trailing years were as follows (millions, except per share):
 52 Weeks Ended
 May 1, 1993 May 2, 1992
 Net retail sales $ 10,523 $ 9,754
 Revenues $ 11,184 $ 10,690
 Net earnings $ 618 $ 520
 Fully diluted earnings per share $ 4.63 $ 3.91
 -0- 5/10/93
 /CONTACT: Jim Abrams of The May Department Stores Company, 314-342-6343/
 (MA)


CO: The May Department Stores Company ST: Missouri IN: REA SU: ERN

SH -- NY021 -- 6343 05/10/93 09:21 EDT
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