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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 3, 1995
THE MAY DEPARTMENT STORES COMPANY
(Exact name of Registrant as specified in its charter)
New York I-79 43-0398035
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
611 Olive Street, St. Louis, Missouri 63101
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:
(314) 342-6300
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Item 5. Other Events.
On August 3, 1995, Registrant reported preliminary sales of
$801.4 million for the four-week period ended July 29, a 10.1%
increase over $727.8 million in the similar fiscal period last
year. Department store sales for the month of July totaled
$635.1 million, up 8.1% or $47.7 million over last year. Sales
for Payless ShoeSource were $166.3 million, an increase of
18.4% or $25.9 million over last year's similar period.
On August 7, 1995, Registrant reported that fully diluted
earnings per share for the 13 weeks ended July 29 increased 8.2%
to $.53, compared with $.49 per share for the quarter in 1994.
Net earnings were $141 million, compared with $130 million a year
ago. Sales were $2.87 billion, up 9.4% from $2.62 billion during
the same period in 1994.
For the six months ending July 29, the Registrant's fully
diluted earnings per share were $.95, an increase of 5.6%
compared with $.90 in 1994. Net earnings were $255 million,
compared with $242 million a year ago. Sales increased 8.1% to
$5.56 billion compared with $5.15 billion last year.
On August 8, 1995, the Registrant and J.C. Penney Company, Inc.
announced that they will acquire John Wanamaker and Woodward &
Lothrop stores in the Philadelphia, Washington and Baltimore
market areas. The United States Bankruptcy Court of the Southern
District of New York approved a Registrant/J.C. Penney joint bid in
the amount of $460 million of net distributable value to
creditors. Under the joint bid, the Registrant will acquire 14
Wanamaker stores in the Philadelphia area, 13 of which it will
operate as Hecht's stores and one of which it will sell to a
third party, and three Woodward & Lothrop stores in the
Washington area, two of which it will operate as Lord & Taylor
stores and one of which it will operate as a Hecht's store. In
addition, the Registrant will acquire two distribution centers, one
of which it will operate and one of which it will sell to a third
party. The Registrant expects that the transaction will close
later in August.
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Item 7. Financial Statements and Exhibits.
(c) Exhibits. The following documents are filed as Exhibits.
Sequential
Numbering
System
Exhibit No. Exhibit Page Number
99-1 Press Release dated August 3, 1995 6
99-2 Press Release dated August 7, 1995 7
99-3 Press Release dated August 8, 1995 10
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
THE MAY DEPARTMENT STORES COMPANY
Dated: August 15, 1995 By: /s/ Richard A. Brickson
Richard A. Brickson
Secretary and Senior Counsel
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INDEX TO EXHIBITS
Sequential
Numbering
System
Exhibit No. Exhibit Page Number
99-1 Press Release dated August 3, 1995 6
99-2 Press Release dated August 7, 1995 7
99-3 Press Release dated August 8, 1995 10
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For Immediate Release Contact: Jim Abrams (314) 342-6343
SALES INCREASE 10.1% FOR THE MONTH OF JULY
FOR THE MAY DEPARTMENT STORES COMPANY
ST. LOUIS, August 3, 1995 -- The May Department Stores Company today
reported preliminary sales of $801.4 million for the four-week period ended
July 29, a 10.1% increase over $727.8 million in the similar fiscal period
last year.
Sales for the first six months of fiscal 1995 were $5.56 billion, up
8.1% from sales of $5.15 billion during the same period a year ago.
Department store sales for the month of July totaled $635.1 million, up
8.1% or $47.7 million over last year. Sales for Payless ShoeSource were
$166.3 million, an increase of 18.4% or $25.9 million over last year's
similar period.
Sales were as follows:
JULY SALES (Millions)
Fiscal Fiscal Percent Store-for-Store*
1995 1994 Increase Increase
Department stores $ 635.1 $ 587.4 8.1% 5.0%
Payless ShoeSource 166.3 140.4 18.4 3.0
TOTAL $ 801.4 $ 727.8 10.1% 4.6%
YEAR-TO-DATE SALES (Millions)
Fiscal Fiscal Percent Store-for-Store*
1995 1994 Increase Inc/(Dec)
Department stores $4,371.2 $4,084.2 7.0% 3.7%
Payless ShoeSource 1,192.2 1,061.2 12.3 (3.0)
TOTAL $5,563.4 $5,145.4 8.1% 2.3%
* Store-for-store sales represent sales of those stores open during both
years.
Sales have been restated to exclude the sales of stores that have been
closed and not replaced. Year-to-date revenues, including sales of
nonreplaced closed stores and finance charge revenue, were $5.74 billion in
1995 and $5.33 billion in 1994.
On August 1, May opened a new Hecht's department store at Crabtree
Valley Mall in Raleigh, N.C. Year-to-date, May has opened three of the 23
department stores scheduled to open in 1995. During July, May opened three
net new Payless ShoeSource stores for a total of 151 year-to-date, and 11
Payless Kids expansion stores for a total of 102 year-to-date.
The May Department Stores Company operates 315 department stores and
4,586 Payless ShoeSource stores.
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FOR REPEATS CALL WIRE NEWS (314) 231-2104
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THE MAY DEPARTMENT STORES COMPANY
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BUSINESS EDITOR / NEWS DIRECTOR
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FOR IMMEDIATE RELEASE
THE MAY DEPARTMENT STORES COMPANY REPORTS RECORD
SECOND QUARTER AND FIRST SIX MONTHS RESULTS
ST. LOUIS (WIRE NEWS), August 7, 1995 -- Earnings per share, net
earnings and sales of The May Department Stores Company for the second
quarter and first six months of fiscal 1995 reached record levels,
David C. Farrell, May Company chairman and chief executive officer,
announced today.
For the 13 weeks ending July 29, fully diluted earnings per share
increased 8.2% to $.53, compared with $.49 per share in the second
quarter of 1994. Net earnings were $141 million, compared with $130
million a year ago. Sales were $2.87 billion, up 9.4% from $2.62
billion during the same period in 1994.
For the six months ending July 29, the company's fully diluted
earnings per share were $.95, an increase of 5.6%, compared with $.90
in 1994. Net earnings were $255 million, compared with $242 million a
year ago. Sales increased 8.1% to $5.56 billion compared with $5.15
billion last year.
On August 1, May opened a new Hecht's department store at
Crabtree Valley Mall in Raleigh, N.C. This brings to three the number
of new department stores opened year-to-date, including the Lord &
Taylor store at Woodfield Mall in Schaumburg, Ill., and the Foley's
store at Temple Mall in Temple, Tex., both of which opened in March.
Another 20 department stores are scheduled to open by year-end: three
stores each for Lord & Taylor and Hecht's, seven stores for Kaufmann's,
four stores for Filene's, and one store each for Foley's, Robinsons-
May, and Famous-Barr. The 23 total new stores planned for 1995 are a
record number for May in a single year, adding more than 3.3 million
square feet of retail space.
During the quarter, May opened 17 net new Payless ShoeSource
stores, for a total of 151 year-to-date, and 35 new Payless Kids
expansion stores, for a total of 102 year-to-date.
The May Department Stores Company operates 315 department stores
and 4,586 Payless ShoeSource stores.
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THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
13 Weeks Ended 13 Weeks Ended
(Millions, except per share) July 29, 1995 July 30, 1994
% to % to
$ Revenues $ Revenues
Net Retail Sales:
Department stores $ 2,243 $ 2,075
Payless ShoeSource 623 544
Total Net Retail Sales $ 2,866 $ 2,619
Revenues $ 2,948 $ 2,706
Cost of sales 2,071 70.2% 1,891 69.9%
Selling, general and
administrative expenses 583 19.8 540 20.0
Interest expense, net 57 2.0 57 2.0
Earnings before income taxes 237 8.0 218 8.1
Provision for income taxes 96 40.5* 88 40.5*
Net Earnings $ 141 4.8% $ 130 4.8%
Primary Earnings per Share $ .55 $ .50
Fully Diluted Earnings per
Share $ .53 $ .49
Dividends Paid per Common
Share $ .28-1/2 $ .26
Primary Average Shares and
Equivalents 250.2 249.9
Fully Diluted Average Shares
and Equivalents 265.7 265.2
26 Weeks Ended 26 Weeks Ended
(Millions, except per share) July 29, 1995 July 30, 1994
% to % to
$ Revenues $ Revenues
Net Retail Sales:
Department stores $ 4,371 $ 4,084
Payless ShoeSource 1,192 1,061
Total Net Retail Sales $ 5,563 $ 5,145
Revenues $ 5,735 $ 5,328
Cost of sales 4,017 70.0% 3,711 69.6%
Selling, general and
administrative expenses 1,175 20.5 1,095 20.6
Interest expense, net 115 2.0 116 2.2
Earnings before income taxes 428 7.5 406 7.6
Provision for income taxes 173 40.5* 164 40.5*
Net Earnings $ 255 4.4% $ 242 4.5%
Primary Earnings per Share $ .98 $ .93
Fully Diluted Earnings per
Share $ .95 $ .90
Dividends Paid per Common
Share $ .54-1/2 .49
Primary Average Shares and
Equivalents 249.7 249.9
Fully Diluted Average Shares
and Equivalents 265.4 265.2
* Percent represents effective income tax rate
NET RETAIL SALES - PERCENT INCREASE VERSUS LAST YEAR
Net retail sales represent the sales of stores operating at the end of
the latest period. They exclude finance charge revenue and the sales
of stores which have been closed and not replaced. Store-for-store
sales represent sales of those stores open during both periods.
13 Weeks Ended 26 Weeks Ended
July 29, 1995 July 29, 1995
Store-for- Store-for
Total Store Total Store
Department stores 8.1% 5.0% 7.0% 3.7%
Payless ShoeSource 14.3 (1.4) 12.3 (3.0)
Total 9.4% 3.7% 8.1% 2.3%
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THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
Interim Results. The unaudited condensed consolidated results of
operations have been prepared in accordance with the company's
accounting policies as described in the 1994 Annual Report to
Shareowners and should be read in conjunction with that report. In the
opinion of management, this information is fairly presented and all
adjustments (consisting only of normal recurring adjustments) necessary
for a fair statement of the results for the interim periods have been
included; however, certain items are included in this statement based
on estimates for the entire year. Also, operating results of periods
which exclude the Christmas season may not be indicative of the
operating results that may be expected for the full fiscal year.
Inventories. Department store merchandise inventories are stated on
the LIFO (last-in, first-out) cost basis. The LIFO provision for the
second quarter was $8 million in 1995 and 1994. The year-to-date LIFO
provision was $16 million in 1995 and 1994.
Trailing Years' Results. Operating results for the trailing years were
as follows (millions, except per share):
52 Weeks Ended
July 29, 1995 July 30, 1994
Net retail sales $ 12,293 $ 11,406
Revenues $ 12,630 $ 11,849
Net earnings $ 795 $ 740
Fully diluted earnings
per share $ 2.97 $ 2.76
Reclassifications. Certain prior period amounts have been reclassified
to conform with current year presentation.
CONTACT: Jim Abrams, (314) 342-6343, The May Department Stores Company
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CONTACT: Jim Abrams Hank Rusman
The May Department Stores Company JC Penney
(314) 342-6343 (214) 431-1316
THE MAY DEPARTMENT STORES COMPANY AND JCPENNEY CO.
TO PURCHASE WANAMAKER AND WOODWARD & LOTHROP
ST. LOUIS, MO, AND PLANO, TX , August 8, 1995 -- The May Department Stores
Company and J.C. Penney Company, Inc. today announced that they will acquire
John Wanamaker and Woodward & Lothrop stores in the Philadelphia, Washington
and Baltimore market areas. A revised May/JCPenney joint bid in the amount
of $460 million of net distributable value to creditors was approved at a
hearing today in the United States Bankruptcy Court of the Southern District
of New York. May and JCPenney also announced that they have executed the
purchase agreement with Woodward & Lothrop and John Wanamaker. In addition,
May executed an agreement with the Center City landlord for Hecht's to
operate in the Center City Wanamaker location in downtown Philadelphia.
Under the joint bid, May will acquire 14 Wanamaker stores in the Philadelphia
area and three Woodward & Lothrop stores in Washington, and JCPenney will
acquire seven Woodward & Lothrop stores in the Washington/Baltimore area.
Other details of the bid remain the same as were announced on July 27, 1995.
David C. Farrell, chairman and chief executive officer of The May Department
Stores Company, said, "We are very pleased to bring Hecht's to the
Philadelphia market and to strengthen both Hecht's and Lord & Taylor in the
Washington market. Hecht's and Lord & Taylor look forward to serving new
customers in these markets."
"JCPenney is gratified and excited to get greater access to this very
important Baltimore/Washington market and to have an opportunity to serve
customers there much more meaningfully and conveniently," said James E.
Oesterreicher, vice chairman and chief executive officer of J. C. Penney
Company, Inc., commenting on the results of the bidding process. The court
order will enable JCPenney to add seven new stores to its fourteen existing
locations in the Baltimore/Washington area.
May and JCPenney expect that the transaction will be completed late this
month.
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