People wearing masks walk through Herald Square on January 8, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Macy’s on Tuesday reported fiscal fourth quarter earnings and sales that beat analysts’ estimates and said the strategic review prompted the retailer to accelerate its recovery plans.
He is rejecting calls from activist Jana Partners to separate its e-commerce operations from its stores following a similar move by Saks Fifth Avenue. Macy’s worked with consulting firm AlixPartners to find the best way to grow the business.
Macy’s shares rose more than 6% in premarket after the news.
During the holiday period, the department store chain said it had attracted about 7.2 million new customers. CEO Jeff Jennett said the department store chain has been able to perform well despite Covid-19-related disruptions, supply chain issues, labor shortages and elevated inflation.
Here are Macy’s fourth-quarter results compared to what analysts expected based on a survey compiled by Refinitiv:
- Earnings per share: $2.45 adjusted vs. $2 expected
- Revenue: $8.67 billion vs. $8.47 billion expected
Net income for the three-month period ended January 29 rose to $742 million, or $2.44 per share, from $160 million, or 50 cents per share, a year earlier. Excluding one-off items, the retailer earned $2.45 per share, more than the $2 that analysts were looking for.
Revenue rose to $8.67 billion from $6.78 billion a year earlier, beating expectations of $8.47 billion.
Same-store, own-plus-license sales grew 27.8% year-on-year. Analysts were expecting same-store sales growth of 24.25%, according to Refinitiv data. The indicator grew by 6.1% in two years.
Macy’s also offered an optimistic forecast for fiscal year 2022, calling for sales in the range of $24.46 billion to $24.7 billion, which will remain at 1% compared to 2021. Analysts had expected revenue of $24.23 billion, which would have been a slight decrease from the previous year.
Macy’s forecasts adjusted earnings per share for the year to be between $4.13 and $4.52. That’s better than the $4.04 analysts were hoping for.
Macy’s shares are down about 2% year-to-date as of Friday’s market close. Its market capitalization is $7.7 billion.
Find the full earnings press release here.
This story is evolving. Please stay tuned for updates.