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THE MAY DEPARTMENT STORES COMPANY REPORTS THIRD QUARTER EARNINGS, EXCLUDING SPECIAL AND NONRECURRING CHARGES, OF $.81 PER SHARE, UP 17 PCT

 THE MAY DEPARTMENT STORES COMPANY REPORTS THIRD QUARTER EARNINGS, EXCLUDING SPECIAL AND NONRECURRING CHARGES, OF $.81 PER SHARE, UP 17 PCT
 ST. LOUIS, Nov. 9 /PRNewswire/ -- The May Department Stores Company (NYSE: MA) reported today fully diluted earnings per share of $.81, excluding special and nonrecurring charges, for the third quarter of 1992, the 13 weeks ended Oct. 31, 1992, a 17 percent increase from $.69 per share in the similar quarter last year. Net earnings for the third quarter were $108 million, excluding special and nonrecurring charges, compared to $91 million last year. Net retail sales were $2.59 billion for the quarter, up 7.0 percent from $2.42 billion last year.
 During the third quarter, May announced three department store consolidations effective Jan. 31, 1993: the two Los Angeles divisions into Robinsons-May; May Company, Ohio, into Kaufmann's, Pittsburgh; and G. Fox, Hartford, into Filene's, Boston. David C. Farrell, May chairman and chief executive officer, said, "These important strategic steps for May position us to better serve our customers, reduce our costs and streamline our operations in a number of important markets. With these consolidations, May will operate nine quality, regional department store companies as well as Payless ShoeSource, the nation's largest operator of self-service family shoe stores."
 Also during the third quarter, May recorded pretax charges of $485 million ($298 million after tax, $2.25 per share on a fully diluted basis) for special and nonrecurring items. The pretax charges consist of: $240 million for department store company consolidations (with the Robinsons-May consolidation representing about 50 percent of the total); $125 million for planned closings of low-productivity stores and other real estate-related charges including adjustments to reflect expected values of a number of properties planned for disposition; $60 million for costs associated with achieving various operating efficiencies; $40 million for costs associated with retiring high interest rate debt; and $20 million for a special contribution to the May Department Stores Company Foundation. Including the special and nonrecurring charges, third quarter fully diluted earnings per share were a loss of $1.44 and net earnings were a loss of $190 million.
 For the 1992 nine-month period, fully diluted earnings per share were $2.12, up 14 percent from $1.86 in the similar year-ago period. Net earnings were $284 million compared to $249 million last year. On a year-to-date basis, the special and nonrecurring items -- the 1992 second quarter nonrecurring gain of $298 million (pretax and after tax), which resulted from the distribution of the May Centers Associates partnership assets, and the $485 million special and nonrecurring pretax charges ($298 million after tax) -- had no impact on net earnings or earnings per share. Net retail sales for the first nine months of 1992 totaled $7.27 billion, up 6.7 percent from $6.81 billion in the similar period a year ago.
 Looking ahead to the important Holiday season, Mr. Farrell said, "We are encouraged by the pick-up in sales volume seen in the past several weeks, and we will be helped by two extra selling days between Thanksgiving and Christmas. We are well positined to benefit from a continued upswing in business."
 May opened two department stores in California during the third quarter -- at Valencia Town Center in Santa Clarita and Moreno Valley Mall in Moreno Valley. In addition, Payless ShoeSource opened 92 net new stores during the quarter.
 The May Department Stores Company is the largest department store retailer in the United States, operating 321 department stores and 3,495 Payless ShoeSource stores at the end of the third quarter.
 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
 Condensed Consolidated Results of Operations
 (Millions, except per share)
 Periods 13 Weeks 39 Weeks
 Ended 10/31/92 11/2/91 10/31/92 11/2/91
 Net retail sales:
 Department stores $2,127 $2,021 $5,926 $5,634
 Payless ShoeSource 464 401 1,345 1,177
 Total net retail sales 2,591 2,422 7,271 6,811
 Revenues 2,671 2,561 7,545 7,253
 Cost of sales 1,874 1,792 5,278 5,057
 Selling, general and
 administrative expenses 553 551 1,587 1,572
 Interest expense, net 66 76 215 235
 Special and nonrecurring
 items (A) 485(A) -- 187(A) --
 Earnings (loss) before
 income taxes (307) 142 278 389
 Provision (benefit) for
 income taxes (117) 51 (6) 140
 Net earnings (loss) (A) $ (190)(A) $ 91 $ 284(A) $ 249
 Primary earnings (loss)
 per share (A) $(1.56)(A) $.70 $2.18(A) $1.90
 Fully diluted earnings
 (loss) per share (A) $(1.44)(A) $.69 $2.12(A) $1.86
 Dividends paid per
 common share $.41-1/2 $.40-1/2 $1.23-1/2 $1.20-1/2
 Primary average shares
 and equivalents 124.6 124.1 124.3 124.1
 Fully diluted average
 shares and equivalents 132.8 132.1 132.8 132.1
 (A) -- During the 1992 third quarter, the company recorded pretax charges of $485 million, $298 million after tax and $2.25 per share on a fully diluted basis ($2.40 per share on a primary basis), for special and nonrecurring items (see accompanying notes). During the 1992 second quarter, the company recorded a $298 million pretax and after-tax nonrecurring gain, $2.25 per share on a fully diluted basis ($2.40 per share on a primary basis), from the distribution of the May Centers Associates partnership assets. On a year-to-date basis, the special and nonrecurring items had no impact on net earnings or earnings per share.
 Results of Operations -- Supplemental Information
 (Millions, except per share)
 Periods 13 Weeks 39 Weeks
 Ended 10/31/92 11/2/91 10/31/92 11/2/91
 EARNINGS BEFORE SPECIAL
 AND NONRECURRING ITEMS
 Earnings before inc. taxes $178 $142 $ 465 $ 389
 Net earnings $108 $ 91 $ 284 $ 249
 Primary earnings per share $.84 $.70 $2.18 $1.90
 Fully diluted earnings
 per share $.81 $.69 $2.12 $1.86
 PERCENT TO REVENUES BEFORE
 SPECIAL AND NONRECURRING ITEMS
 Cost of sales 70.2 70.0 70.0 69.7
 Selling, general and
 administrative expenses (B) 20.7 21.5 21.0 21.7
 Interest expense, net (B) 2.4 3.0 2.8 3.2
 Earnings before income taxes 6.7 5.5 6.2 5.4
 Effective income tax rate (B) 39.3 35.6 38.9 36.1
 Net earnings 4.1 3.6 3.8 3.4
 (B) -- For comparability, adjusting 1991 to reflect the current status of the May Centers Associates partnership, the percent to revenue of selling, general and administrative expenses and interest expense, and the effective income tax rate would have been 21.8 percent, 2.5 percent and 37.0 percent, respectively, for the third quarter and 21.9 percent, 2.9 percent and 37.0 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 stores open during both periods.
 Periods ended 13 Weeks 39 Weeks
 Oct. 31, 1992 (in percent) (in percent)
 Store-for- Store-for-
 Total Store Total Store
 Department stores 5.3 3.4 5.2 2.6
 Payless ShoeSource 15.7 2.8 14.2 1.5
 Total 7.0 3.3 6.7 2.4
 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 1991 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.
 -- Special and Nonrecurring Items. During the 1992 third quarter, the company announced three consolidations of department store companies. Effective Jan. 31, 1993, May Company, California, and Robinson's, both based in Los Angeles, will be consolidated into a single company, Robinsons-May; May Company, Ohio, based in Cleveland will be consolidated into Kaufmann's based in Pittsburgh; and G. Fox based in Hartford will be consolidated into Filene's based in Boston.
 During the 1992 third quarter, the company recorded pretax charges of $485 million ($298 million after tax, $2.25 per share on a fully diluted basis) for special and nonrecurring items. The pretax charges consist of: $240 million for department store company consolidations (the Robinsons-May consolidation representing about 50 percent of the total); $125 million for planned closings of low productivity stores and other real estate-related charges including adjustments to reflect expected values of a number of properties planned for disposition; $60 million for the costs associated with achieving various operating efficiencies; $40 million for the costs associated with retiring high interest rate debt; and $20 million for a special contribution to the May Department Stores Company Foundation. The costs to retire the debt were not reflected as an extraordinary item as it is not material to total company annual earnings or the earnings trend of the company.
 During the 1992 second quarter, the company recorded a $298 million pretax and after tax nonrecurring gain ($2.25 per share on a fully diluted basis) from the distribution of the May Centers Associates partnership assets on May 18, 1992. The partnership dissolution and distribution of assets resulted in the company receiving 79 percent of the stock of May Centers Associates Corporation (MCAC) and The Prudential receiving 21 percent of the stock of MCAC and 100 percent of the stock of CenterMark Properties (formerly known as May Centers, Inc.). The company has an option to acquire the stock of MCAC held by The Prudential in the 1992 fourth quarter for $156 million. In connection with the company's consolidation of MCAC in its Oct. 31, 1992, balance sheet, the $156 million is included in accrued expenses to reflect the future cost of acquiring the stock of MCAC held by The Prudential.
 The special and nonrecurring charges and nonrecurring gain are reflected as special and nonrecurring items on a separate line in the accompanying condensed consolidated results of operations. On a year- to-date basis, the special and nonrecurring items had no impact on net earnings or earnings per share.
 -- Trailing Years' Results. Results for the trailing years were as follows (millions, except per share):
 52 weeks ended 10/31/92 11/2/91
 Net retail sales $10,453 $ 9,886
 Revenues 10,907 10,538
 Net earnings $ 550 $ 501
 Fully diluted earnings per share $4.13 $3.77
 -0- 11/9/92
 /CONTACT: Jim Abrams of May, 314-342-6343/
 (MA) CO: The May Department Stores Company ST: Missouri IN: REA SU: ERN


GK -- NY029 -- 8613 11/09/92 10:44 EST
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