The May Department Stores Company today announced earnings per share, net earnings, and net sales for the first quarter of fiscal 2005.
For the 13 weeks ended April 30, 2005, earnings per share were 13 cents, compared with 24 cents per share in the similar period a year ago. Net earnings were $41 million, compared with net earnings of $76 million the prior year. First quarter 2005 earnings include store divestiture costs of $9 million, or 2 cents per share. Excluding these costs, 2005 first quarter earnings were $47 million, or 15 cents per share. The 2005 first quarter also includes the benefit of a $14 million, or 5 cents per share, income tax provision reduction recorded upon the resolution of various federal and state income tax issues. First quarter 2004 earnings included store divestiture costs of $7 million, or 2 cents per share. Excluding these costs, 2004 first quarter earnings were $81 million, or 26 cents per share.
The integration of Marshall Field's continues on track and all system conversions were completed in April 2005. First quarter 2005 earnings include Marshall Field's start-up integration expenses of $21 million, or 5 cents per share.
Net sales for the 2005 first quarter were $3.37 billion, an increase of 13.7%, compared with $2.96 billion in the 2004 first quarter. Store-for-store sales decreased 5.1% for the quarter.
“Our 2005 first quarter results did not meet our expectations,” said John Dunham, May's chairman, president and chief executive officer. “Sales of our proprietary ladies' and men's apparel brands were among our weakest performing categories, and during the quarter we took incremental markdowns to keep our proprietary apparel inventories current.”
First quarter 2005 results include incremental markdowns of approximately $18 million at cost, or 4 cents per share, to facilitate the seasonal clearance of proprietary apparel.
May opened one new department store during the 2005 first quarter: a Robinsons-May store in El Centro, Calif. Seven additional department stores are planned for 2005: three Foley's stores in Loveland, Colo., and San Antonio and Dallas/Fort Worth, Texas; two Kaufmann's stores in Pittsburgh, Pa., and Columbus, Ohio; a Robinsons-May store in Simi Valley, Calif.; and a Hecht's store in N. Charlotte, N.C.
May's Bridal Group opened two David's Bridal stores and six After Hours Formalwear stores in the first quarter. The Bridal Group plans to open an additional 16 David's Bridal stores and 14 After Hours stores by year-end.
As previously announced, May and Federated Department Stores, Inc., have entered into a merger agreement. The transaction is subject to certain regulatory and shareholder approvals and is expected to close in the 2005 third quarter. May recorded approximately $4 million, or 1 cent per share, of merger-related expenses in the 2005 first quarter.
At the end of the first quarter, May operated 490 department stores under the names of Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, Lord & Taylor, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's, and The Jones Store, as well as 241 David's Bridal stores, 450 After Hours Formalwear stores, and 11 Priscilla of Boston stores in its Bridal Group. May currently operates in 46 states, the District of Columbia, and Puerto Rico.