Macy’s Inc (NYSE: M)
Shares of Macy’s Inc surged more than 10% in premarket trading on Wednesday after the company reported first quarter earnings that finished above Wall Street estimate.
During the presentation of the results, the department store retailer also announced it will end its joint venture with Chinese Fung Retailing Ltd.
However, Macy’s said it would remain active on Alibaba’s social media channels and Tmall platform.
Macy’s isn’t the best day trading stock but with a move like this in the premarket we should see plenty of opportunity on this name today.
M Earnings & Outlook
The company posted a net income of $139 million, or $0.45 per share during the quarter. In the same period last year, net income was $78 million, or $0.26 per share.
Excluding impairment and other one-time costs, Macy’s earned $0.48 per share, $0.11 higher compared with what analysts had anticipated.
Revenues increased by about 3.6% to $5.5 billion, again edging above Wall Street’s estimates. Same-store sales climbed 4.2%, nearly 3% points higher than analysts’ prediction.
For the full year, Macy’s expects earnings per share of between $3.75 and $3.95, $0.20 higher than its previous forecast.
Macy’s CEO Comments
Macy’s Chairman and Chief Executive Officer Jeff Gennette made the following statement during the announcement of the earnings report: “Macy’s, Inc.’s results for the first quarter of 2018 reflect continuing momentum in the business. We exceeded our expectations and saw strong performance across all three brands—Macy’s, Bloomingdale’s, and Bluemercury—as well as across all geographic regions and families of business. We are maintaining a healthy inventory position, which helped us deliver improved gross margin. The winning formula for Macy’s, Inc. is a healthy brick & mortar business, robust e-commerce and a great mobile experience. While we have more work to do, the continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business. Our best customer is responding well to the improvements we’ve made to her experience in our stores, on .com and through the Macy’s app.”
“Our first quarter performance reflects solid execution of our North Star Strategy, including merchandising and marketing activities. We also saw continued healthy consumer spending and significant improvements in international tourism. Taken together, these positive factors give us confidence to raise both our sales and earnings guidance for the fiscal year. Heading into the second quarter, we are intensely focused on laying the foundation for our 2018 strategic initiatives to support improved performance in the back half of the year,” Gennette added. –Yahoo
Macy’s Inc Company Profile
Macy’s, Inc., is an omni-channel retail company that operates outlets, mobile applications, and websites. It sells a wide range of items, such as accessories and apparel for women, men, and kids; home furnishings; cosmetics; and other accessories. As of April 2018 the company operated a total of 160 specialty stores and 690 department stores under its brands Macy’s, Bloomingdale’s, and Bluemercury brands. It also operates the Macy’s Backstage brands located in Puerto Rico, Guam and District of Columbia.
In addition, the company runs several websites including bloomingdales.com, bluemercury.com, and macys.com. It also operates as a spa and beauty products retailer. The company was founded in 1830 under the name Federated Department Stores, Inc. It however changed to its current name in June 2007. Its headquarters are located in Cincinnati, Ohio. –Reuters