[R]9:30AM New York – Macy’s and Nordstrom report declining sales as shoppers restrain on spending.[/R]

Macy''s, Inc. (M: chart) today reported earnings from continuing operations of $1.73 per diluted share for the 13-week fourth quarter of 2007, ended Feb. 2, 2008 compared to $1.45 for the 14-week fourth quarter last year.

Sales in the fourth quarter declined 6.2% to $8.6 billion compared to $9.2 billion from a year ago and same-store sales in the quarter declined 2%. The company shuttered 12 of its stores.

Company guided sales decline in 2008 between 1% and 1.5% and earnings per share between $1.85 per share and $2.15 per share.

Excluding May Company merger integration costs of $69 million ($43 million after tax or 10 cents per diluted share), fourth quarter diluted earnings per share from continuing operations were $1.83. Also excluding the tax settlement, fourth quarter diluted earnings per share from continuing operations were $1.65.

The fourth quarter of 2006 included merger integration costs and related merchandise inventory adjustments of $177 million ($110 million after tax or 21 cents per diluted share) and a gain of $54 million ($34 million after tax or 6 cents per diluted share) related to completion of the company''s debt tender offer. Excluding these items, diluted earnings per share from continuing operations were $1.60 for the fourth quarter of 2006.

Nordstrom, Inc. (JWN: chart) today reported net earnings of $212 million, or $0.92 per diluted share for the fourth quarter ended February 2, 2008 compared to diluted earnings of $232 million and $0.89 per share.

Total sales in the fourth quarter were $2.5 billion, a decrease of 4.4% compared to sales of $2.6 billion for the same period in fiscal 2006. Fourth quarter same-store sales decreased 0.7%.

Same-store sales decreased 0.7 percent for the quarter compared to the company''s approximately flat same-store sales plan.

For the fiscal year ended February 2, 2008, net earnings increased 5.5% to $715 million compared to net earnings of $678 million last year. Earnings per diluted share for the same periods were $2.88 and $2.55, respectively. Full year results include a gain of $20.9 million, net of tax, or $0.09 per diluted share, for the sale of the Faconnable business, which closed during the third quarter.

In the quarter the company opened 165,000 square foot store in Aventura, Florida and plans to open in March 2008, 210,000 sq ft store in Honolulu, Hawaii and 138,000 sq ft in Burlington, MA.