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THE MAY DEPARTMENT STORES COMPANY REPORTS SECOND QUARTER EARNINGS OF $.44 PER SHARE

 ST. LOUIS, Aug. 9 /PRNewswire/ -- The May Department Stores Company today reported fully diluted earnings per share of $.44 for the second quarter of fiscal 1993, the 13 weeks ended July 31, a 22 percent increase from $.36 per share, excluding a nonrecurring gain, in the similar year-ago quarter. Net earnings were $117 million for the quarter compared to $95 million, excluding a nonrecurring gain, last year. Sales in the 1993 second quarter were $2.50 billion, up 8 percent from $2.31 billion in the similar quarter last year.
 For the six months ended July 31, fully diluted earnings per share were $.79, up 20 percent over the $.66 reported for the 1992 first half, excluding the nonrecurring gain. Net earnings for the first six months of fiscal 1993 were $213 million compared to $176 million in the similar period last year, excluding the nonrecurring gain. Sales for the first half of fiscal 1993 totaled $4.82 billion, up 7 percent from $4.51 billion in the similar year-ago period.
 Including the second quarter 1992 nonrecurring gain, fully diluted earnings per share were $1.48 and net earnings were $393 million for the 1992 second quarter, and fully diluted earnings per share were $1.78 and net earnings were $474 million for the 1992 year-to-date period.
 During the 1993 second quarter, May opened a Kaufmann's department store in Syracuse, N.Y., and 70 net new Payless ShoeSource stores. In the remainder of 1993, May will open 11 department stores -- three for Lord & Taylor, three for Robinsons-May, three for Hecht's and two for Filene's. Approximately 150 net new Payless ShoeSource stores also will be opened by the end of fiscal 1993.
 Also during the quarter, May completed the consolidation of its Denver-based May D&F department store division into Foley's, headquartered in Houston. Foley's now operates 49 stores in Texas, New Mexico, Arizona and Colorado. Additionally, May completed the move of its merchandising offices, May Merchandising Company, to St. Louis from New York City and May consolidated its four department store data centers into two, now operating in St. Louis and Lorain, Ohio.
 The May Department Stores Company is the largest department store retailer in the United States, operating 302 department stores and 3,650 Payless ShoeSource stores at the end of the 1993 second quarter.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Condensed Consolidated Results Of Operations
 (In millions, except per share)
 Period ended 13 Weeks 26 Weeks
 7/31/93 8/1/92 7/31/93 8/1/92
 Net Retail Sales:
 Department stores $ 1,986 $ 1,860 $ 3,846 $ 3,632
 Payless ShoeSource 513 452 970 881
 Total Net Retail Sales $ 2,499 $ 2,312 $ 4,816 $ 4,513
 Revenues $ 2,586 $ 2,486 $ 5,008 $ 4,874
 Cost of sales 1,791 1,736 3,474 3,404
 SG&A expenses 536 526 1,053 1,034
 Interest expense, net 60 67 123 149
 Nonrecurring gain --- (298)(A) --- (298)(A)
 Earnings bef. income taxes 199 455 358 585
 Provision for income taxes 82 62 145 111
 Net Earnings $ 117 $ 393(A) $ 213 $ 474(A)
 Primary Earnings
 per Share $ .45 $ 1.56(A) $ .82 $ 1.87(A)
 Fully Diluted Earnings
 per Share $ .44 $ 1.48(A) $ .79 $ 1.78(A)
 Dividends Paid per
 Common Share $ .23 $.20-3/4 $.43-3/4 $ .41
 Primary Average Shares
 and Equivalents 249.9 248.6 249.8 248.5
 Fully Diluted Average
 Shares and Equivalents 266.0 264.9 265.9 264.7
 (A) During the 1992 second quarter, the company recognized a $298 million pretax (and after-tax) nonrecurring gain, $1.12 per share on a fully diluted basis ($1.20 per share on a primary basis), from the distribution of the May Centers Associates partnership assets.
 RESULTS OF OPERATIONS -- SUPPLEMENTAL INFORMATION
 (Millions, except per share)
 Period ended 13 Weeks 26 Weeks
 7/31/93 8/1/92 7/31/93 8/1/92
 Earnings Before
 Nonrecurring Gain:
 Earnings before
 income taxes $ 199 $ 157 $ 358 $ 287
 Net Earnings $ 117 $ 95 $ 213 $ 176
 Primary Earnings
 per Share $ .45 $ .36 $ .82 $ .67
 Fully Diluted Earnings
 per Share $ .44 $ .36 $ .79 $ .66
 Percent to Revenues Bef.
 Nonrecurring Gain
 (in percents):
 Cost of sales 69.3 69.8 69.4 69.8
 SG&A expenses 20.7 21.2(B) 21.0 21.2(B)
 Interest expense, net 2.3 2.7(B) 2.5 3.1(B)
 Earnings bef. income taxes
 (in percents) 7.7 6.3 7.1 5.9
 Effective income tax rate
 (in percents) 41.2 39.2(B) 40.4 38.6(B)
 Net Earnings
 (in percents) 4.5 3.8 4.3 3.6
 (B) - On May 18, 1992, the May Centers Associates (MCA) partnership was dissolved. Adjusting 1992 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 21.2 percent, 2.6 percent and 39.4 percent, respectively, for the second quarter and 21.4 percent, 2.7 percent and 39.2 percent, respectively, for the year-to-date period.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Net Retail Sales - Percent Increase 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.
 Period ended 13 Weeks 26 Weeks
 July 31, 1993
 Store-for- Store-for-
 (In percents) Total Store Total Store
 Department stores 6.8 5.7 5.9 4.7
 Payless ShoeSource 13.6 4.0 10.1 1.3
 Total 8.1 5.4 6.7 4.1
 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.
 Common Stock Split. During June 1993, the company effected a two- for-one stock split in the form of a 100 percent stock dividend. All share and per share data included herein has been restated to reflect the stock split.
 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 second quarter compared to $9 million in the 1992 second quarter. The year-to-date LIFO provision was $16 million in 1993 and 1992.
 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
 7/31/93 8/1/92
 Net retail sales $ 10,696 $ 9,910
 Revenues $ 11,284 $ 10,797
 Net earnings $ 342 $ 831
 Net earnings before special
 and nonrecurring items $ 640 $ 533
 Fully diluted earnings per share $ 1.27 $ 3.12
 Fully diluted earnings per
 share before special
 and nonrecurring items $ 2.39 $ 2.00
 -0- 8/9/93
 /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

MP -- NY025 -- 0706 08/09/93 11:13 EDT
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