Thanks largely to a onetime gain from buying back junk bonds, R. H. Macy & Co. on Monday reported its first quarterly profit in two years.
The big New York-based retailer, which owns the Bullock's and I. Magnin stores in Southern California, posted net income of $78 million on sales that fell 9.4% to $2.2 billion in its second quarter ended Feb. 2.
Excluding the company's one-time gain of $85.3 million from buying back junk bonds at a discount, Macy's loss in the quarter narrowed to $7.3 million. In the same quarter a year earlier, Macy's lost $39 million.
The last time Macy's reported a net profit was in the second quarter that ended in January, 1989, when it made $72.6 million. Analysts credited Macy's with managing its inventories well in the past quarter, accurately anticipating the weak Christmas shopping season.