Macy’s Inc (NYSE: M)
Cincinnati-based department store operator Macy’s Inc. topped analysts’ expectations when it presented its fourth-quarter earnings before markets opened on Tuesday. The retailer also announced a multiyear cost-savings program worth around $100 million, which is aimed at boosting comparable sales in 2019 and paring down its management structure.
The results come several weeks after Macy’s warned of a disappointing 2018 holiday shopping season and slashed its outlook for current year. Shares of the company were up 4.23% to $25.39 as of 9:58 a.m. in New York after rising after 3.9% in pre-market trading. The stock has lost more than 18% since the beginning of the year through Monday’s close.
M Earnings & Outlook
Macy’s had net income of $740 million, or $2.37 per share in the three months to February 2, 2019. In the same period a year earlier, the company reported net income of $1.35 billion, or $4.38 per share. Excluding one-time gains and costs, Q4 2018 earnings came to $2.73 per share.
Revenue was $8.46 billion, down 2.5% from $8.67 billion year over year. On average, analysts polled by Refinitiv were expecting the company to post Q4 2018 earnings of $2.53 per share on sales of $8.4 billion.
Looking ahead, Macy’s expects fiscal 2019 to be in the range of $3.05 to $3.55 per share, compared with analysts’ estimates of $3.39 per share. The company also expects full-year comparable store sales to rise by as much as 1%.
Macy’s CEO Comments
“2018 was an important year for Macy’s, Inc. as we changed the trajectory of the company and delivered positive comparable sales for the full year. I’m pleased with the impact of our strategic initiatives, particularly as they gained traction in the back half of the year,” said Jeff Gennette, Macy’s, Inc. chairman & chief executive officer.
“Looking at the fourth quarter of 2018, while we delivered positive comparable sales against what was a strong holiday season in 2017, results were lower than our expectations. We experienced another quarter of double-digit growth in digital. We also saw continued improvement in our brick and mortar trends with the Growth50 stores outperforming the fleet.”
Macy’s Inc. Profile
Macy’s, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods.
As of April 4, 2018, it operated approximately 690 department stores under the Macy’s and Bloomingdale’s brands; 160 specialty stores under the Bloomingdale’s The Outlet, Bluemercury, and Macy’s Backstage brands in the District of Columbia, Guam, and Puerto Rico; and Websites, including macys.com, bloomingdales.com, and bluemercury.com.
The company also operates as a beauty products and spa retailer. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy’s, Inc. in June 2007. Macy’s, Inc. was founded in 1830 and is based in Cincinnati, Ohio. – Yahoo Finance
