Macy's, Inc has today reported earnings per share at the high end of expectations, despite the challenging environment and a warm September and October.

The company said that it had achieved earnings of US$0.08 per diluted share for the third quarter of 2007, compared with diluted earnings per share from continuing operations of 3 cents for the same 13-week period last year.

Excluding May company merger integration costs of $17m, third quarter diluted earnings per share were 10 cents. This is at the high end of the company's guidance for earnings of 5 cents to 10 cents per share excluding merger integration costs.

For the first three quarters of 2007, Macy's, Inc. reported diluted earnings per share from continuing operations of 35 cents per share, compared with 41 cents per share for the first three quarters of 2006. Excluding the integration costs of $150m, diluted earnings per share from continuing operations were 55 cents for the first three quarters of 2007.

The first three quarters of 2006 included merger integration costs and related merchandise inventory adjustments of $451m. Excluding these items, as well as a tax refund that contributed 16 cents per diluted share, diluted earnings per share from continuing operations were 54 cents for the first three quarters of 2006.

Terry J. Lundgren, Macy's, Inc. chairman, president and chief executive officer, said: "Despite the unseasonably warm weather in September and October, we were able to deliver third quarter same-store sales within our guidance and earnings per share at the top end of our guidance. We have a wide range of new and distinctive merchandise in our assortment for the holiday season at both Macy's and Bloomingdale's, and we believe we will compete successfully in the fourth quarter, despite what continues to be a challenging economic environment."

Sales in the third quarter totalled $5.906 billion, an increase of 0.3% compared to the same period last year. On a same-store basis, Macy's, Inc.'s third quarter sales were down 0.8%.

Macy's said it expects same-store sales in the range of down 2% to up 1% in the fourth quarter of 2007.

Total sales are expected to be $8.7 billion to $8.9 billion in the fourth quarter of 2007.

Earnings per diluted share, excluding merger integration costs, are expected to be $1.70 to $1.80 in the fourth quarter.