Macy’s profit off 77 percent on charges

Macy’s Inc. said Wednesday that its second-quarter earnings fell 77 percent as it continues to be hurt by costs from its takeover of a former rival along with lower sales. It also warned that third-quarter and full-year earnings would come in below Wall Street estimates, and its stock hit a 52-week low.

Profit declined to $74 million, or 16 cents per share, for the quarter ended Aug. 4, from $317 million, or 57 cents per share. Excluding costs of $60 million, or 13 cents per share, from the acquisition of May Department Stores Co., Cincinnati-based Macy’s earned 29 cents per share in the latest period, compared with 33 cents in the 2006 second quarter.

Sales slipped about 2 percent to $5.89 billion from nearly $6 billion last year.

Analysts surveyed by Thomson Financial, who typically exclude one time charges such as integration costs, had forecast profit of 26 cents per share on revenue of $5.88 billion. Last month, Macy’s cut its third-quarter profit outlook to 20 to 30 cents a share from 35 to 45 cents.

Macy’s shares fell 2 percent, or 63 cents, to $31.10 in trading Wednesday.

“Farm equipment maker Deere & Co. posted a record third-quarter profit Wednesday, driving its shares up more than 5 percent amid strong global sales that analysts predict will continue to rise in 2008.

Moline-based Deere also raised its earnings forecast for the year as net income grew 23 percent to $537.2 million, or $2.37 per share, for the quarter that ended July 31, up from $436 million, or $1.85 per share in the same period a year ago.

Analysts polled by Thomson Financial expected earnings of $1.99 per share for the quarter.