People wear facemasks as they 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 outpaced analysts’ estimates and said that a strategic review has prompted the retailer to accelerate its turnaround plans.
It is rejecting calls from activist Jana Partners for it to split its e-commerce operations from its stores, following a similar move by Saks Fifth Avenue. Macy’s had been working with consulting firm AlixPartners to consider the best path forward for the business.
Macy’s shares rose more than 6% in premarket trading following the news.
During the holiday period, the department store chain said it brought in roughly 7.2 million new customers. Chief Executive Jeff Gennette said the department store chain was able to deliver the solid results despite Covid-19 related disruptions, supply chain issues, labor shortages and elevated inflation.
Here’s how Macy’s did in its fourth quarter compared with what analysts were anticipating, 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 Jan. 29 grew to $742 million, or $2.44 a share, from $160 million, or 50 cents per share, a year earlier. Excluding one-time items, the retailer earned $2.45 a share, better than the $2 that analysts were looking for.
Revenue grew to $8.67 billion from $6.78 billion a year earlier, beating expectations for $8.47 billion.
Same-store sales, on an owned-plus-licensed basis, rose 27.8% year over year. Analysts were looking for same-store sales growth of 24.25%, according to Refinitiv. The metric was up 6.1% on a two-year basis.
Macy’s also offered an upbeat outlook for fiscal 2022, calling for sales to range between $24.46 billion and $24.7 billion, which would be flat to up 1% compared with 2021. Analysts had been looking for revenue of $24.23 billion, which would have been a slight decrease from the prior year.
Macy’s sees adjusted earnings per share for the year to be between $4.13 and $4.52. That’s better than the $4.04 analysts were looking for.
Macy’s shares are down about 2% year to date, as of Friday’s market close. Its market cap is $7.7 billion.
Find the full earnings press release here.
This story is developing. Please check back for updates.