R.H. Macy & Co.
This article was originally published in The Rose Sheet
Executive Summary
Announced that the New York State Attorney General has begun a formal investigation into the effect on competition of a possible acquisition of Macy's by Federated Department Stores. Federated disclosed its interest in acquiring Macy's in January ("The Rose Sheet" Jan. 10, p. 8). Separately, Macy's reported that third quarter earnings before interest, taxes, depreciation and amortization were $34.9 mil., up 31.7% and exceeding the firm's plan by almost 30%. Comparable store sales, adjusted to take into account stores closed in 1993 and January 1994 and the restructuring of the company's electronics business, rose 6%. The Chapter 11 firm posted an operating loss of $53.1 mil. in the third quarter versus $53.7 mil. the year before. The 1994 loss includes a charge of about $13.1 mil. for changes in accounting standards. Macy's net loss, including special items, was $157.3 mil. for the third quarter compared to $228 mil. in the same quarter a year ago