Despite losses, Macy to boost executives' pay

June 17, 1992|By New York Times News Service

NEW YORK -- R.H. Macy & Co. reported yesterday sharply lower sales and earnings for the third quarter, citing poor economic conditions in its major areas of operation and disruptions in merchandise flow and business in the aftermath of its bankruptcy filing.

Macy painted its latest grim financial portrait on the same day news broke of the company's intentions to offer Mark S. Handler, who shares the chairman and chief executive positions with Myron E. (Mike) Ullman III, a $2.6 million, three-year contract and to give Mr. Ullman a 10 percent raise.

The company said it lost $225.9 million in the quarter that ended May 2, more than double the loss of $100.9 million in the third quarter of last year. Macy noted that it incurred $91 million in extraordinary expenses related to its reorganization, including an estimated $85 million charge for closing stores.

Revenues fell 6.1 percent, to $1.31 billion, from $1.39 billion in the comparable period last year. And sales in stores open at least one year, slipped 6.4 percent in the third quarter.

Analysts were not surprised by the news. Macy has posted sales declines for the last few quarters, and the hefty loss was expected in light of the upheaval associated with bankruptcy proceedings.

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