Macy's profits jump on cut costs, improved efficiencyMacy's net income jumped 50 percent to $667 million in the three months ended January 29, the Cincinnati-based company said in a statement Tuesday. Analysts had forecast a profit of $1.52 per share, but the company reported profits of $1.59 a share.

Macy's has successfully emerged from the lulls of the recessions and has ridden the recent wave in increased consumer spending to post quarterly profits ahead of expectations over the past year. Joel Levington, the managing director of corporate credit for Brookfield Investment Management, told Bloomberg Macy's has succeeded in slashing its expenses by closing underperforming stores and controlling personnel costs, among other moves.

Levington said "Macy's had a solid quarter on lower expenses than we had expected." The department store chain "benefited from year-ago store closings, tight controls in personnel, and growth in sales online, which incur smaller costs than store sales."

Macy's announced last year that it would open up additional manufacturing facilities in the Mid Atlantic to handle the uptick in demand from its online business. The company's online revenue climbed 29 percent in the quarter, while sales in every region - and including its upscale Bloomingdale's chain - exceeded expectations.  
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