Higher sales, cost controls pushed up this stock market investment’s earnings

Macy’s Inc., symbol M on New York, operates 850 Macy’s and Bloomingdale’s department stores in 45 states, as well as in District of Columbia, Puerto Rico and Guam. It also sells goods over the Internet. Macy’s is one of the U.S. stock market investments we analyze in our Wall Street Stock Forecaster newsletter. Macy’s makes a point of tailoring its lines to regional tastes. It also emphasizes its exclusive brands, which account for 43% of its sales. In fiscal 2011, which ended January 29, 2011, Macy’s sales rose 6.4%, to $25.0 billion from $23.5 billion in 2009. Same-store sales rose 4.6%. That was the company’s best performance in 15 years, and was far ahead of the 2% rise the company was expecting. Higher sales of men’s and women’s clothing and accessories were the main reasons for the higher sales. As well, online sales rose 28.7%. Macy’s earnings per share jumped 55.1%, to $2.11 from $1.36. Macy’s continues to do a good job of controlling its costs and managing its inventories. That cuts the need for costly clearance sales. The stock pays a quarterly dividend of $0.05. The annual rate of $0.20 yields 0.8%. If you’re interested in U.S. stock market investments, you should subscribe to Wall Street Stock Forecaster. What’s more, you can get one month free when you subscribe today. Click here to learn how.