Retailers Showcase Mixed 2011 Results
A flood of earnings reports Tuesday showed a mixed bag for the broader economy, but retailers generally enjoyed a bounce-back last year.
Macy's (NYSE:M) reported a 5.5 percent increase holiday sales , leading to a 12 percent climb in fourth-quarter income to $745 million, or $1.74 a share, up from $667 million, or $1.55 a share in the year-earlier quarter.
The Cincinnati-based retailer's fiscal 2011 saw growth to the tune of 27 percent in its net income, reaching $2.41 billion. The company's 2012 outlook remains decidedly sunny, with earnings per share guidance of $3.23 to $3.30 and same-store sales up 3.5 percent.
Macy's competitor Saks (NYSE:SKS) also saw a boost in fourth-quarter profits. Net income rose 48 percent to $36.9 million, or 21 cents per share. Its 2012 outlook calls for same-store sales growth of five percent to seven percent.
News for Home Depot's stockholders was much less dire, as the home improvement chain reported a 32 percent increase in fourth-quarter income, earning $774 million, or 50 cents a share. The Atlanta-based company expects a four percent rise in same-store sales for 2012.
But not all consumer discretionary companies enjoyed a bountiful 2011, as both Barnes and Noble and RadioShack saw profits drop.
The nation's largest bookstore chain reported fourth-quarter profits slipping 14 percent to $52 million, or 71 cents a share, compared with 2010's $60.6 million, or $1 a share.
RadioShack's fourth-quarter profit plummeted 79 percent to $11.9 million, fulfilling warnings of a disappointing outlook after Sprint Nextel's new activation deals with customers cut into the electronics retailer's revenue.
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