August 10, 2004

NEW YORK (Reuters) - May Department Stores Co., parent of Lord & Taylor and David's Bridal, Tuesday posted a higher quarterly profit as cost savings and more demand for accessories like handbags and jewelry offset slack sales.

May said overall sales performance did not meet its expectations because of weaker demand for casual sandals, shorts, seasonal apparel and home furnishings.

St. Louis-based May said it earned $110 million, or 36 cents per share, excluding restructuring costs, in its second quarter ended July 31. This compared with $92 million, or 30 cents per share, a year earlier. Net sales fell 1.5 percent to $2.96 billion from $3 billion.

Analysts, on average, had expected May to earn 35 cents per share, according to Reuters Estimates.

On a net basis, the retailer earned $101 million, or 33 cents, including restructuring costs of 3 cents a share, compared with a net loss of $110 million, or 39 cents a share, in the year-ago period.

Sales at stores open at least a year, a key retail gauge known as same-store sales, decreased 2.2 percent for the quarter.

Excluding the remaining 15 stores which it previously said it would divest, same-store sales fell 1.6 percent.

May completed its acquisition of Marshall Field's in July. It now operates 62 department stores and distribution centers under the Marshall Field's name.

May (MAY: up $1.30 to $26.20, Research, Estimates) shares rose 4.5 percent to $26.03 in morning trading on the New York Stock Exchange.

Mortgage Rates News, Mortgage News, Financial News