May reports a 69 percent drop in third-quarter earnings
ST. LOUIS (AP) – May Department Stores Co.’s third-quarter earnings dropped 69 percent, as the company struggled with sluggish sales. The results, announced Monday, came in below analysts’ projections, which had been reduced last week after the company warned of disappointing sales.
The St. Louis-based retailer earned $16 million, or 5 cents per share, in the period ending Nov. 2, compared to earnings of $52 million, or 16 cents per share, a year ago. Revenue fell to $3.05 billion from $3.20 billion in the third quarter of 2001.
The earnings included costs related to combining its various store divisions and early debt redemption.
Excluding those costs, the company earned $22 million, or 7 cents per share. Analysts surveyed by Thomson First Call projected earnings of 9 cents per share before onetime items. Earnings for the first nine months of the year were $155 million, or 50 cents per diluted share, down 43 percent from earnings of $272 million, or 85 cents per diluted share, a year ago.
Nine-month sales were $9.30 billion, down from $9.45 billion in 2001. May has opened 11 new department stores in 2002. Its David’s Bridal division opened 22 stores so far this year and plans to open eight more. On Aug. 3, the company completed its previously announced plan to combine its Pittsburgh-based Kaufmann’s division with its Filene’s division, based in Boston, and its Portland-based Meier & Frank division with its Robinsons-May division, based in Los Angeles.
May also operates Lord & Taylor, Famous-Barr, Foley’s, Hecht’s, L.S. Ayres, Strawbridge’s and The Jones Store. It also operates 172 David’s Bridal, 237 After Hours Formalwear and 10 Priscilla of Boston stores.
The company has stores in 44 states, the District of Columbia and Puerto Rico.