The company reported $2.82 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $2.71 by $0.11.
A number of research firms have recently weighed in on M. Jefferies Group reissued a "hold" rating on shares of Macy's in a research report on Tuesday, February 27th. Kistler Tiffany Companies LLC raised its position in shares of Macy's by 31.3% during the fourth quarter.
Estimates: A 50% rise in EPS to 36 cents on 1.7% sales growth to $5.43 billion, according to Zacks Investment Research.
The department store has kept its clearance racks in check and has less stale inventory on the floor.As a result, Macy's managed to cross the first quarter earnings and sales expectations of the analysts.
"The winning formula for Macy's Inc.is a healthy brick-and-mortar business, robust e-commerce and a great mobile experience", Gennette said in a statement.
Chief Executive Officer Jeff Gennette said on an earnings call the company saw double-digit growth in its digital business and continued healthy consumer spending.
" While beating prior year sales was never guaranteed, with a little effort it has been relatively easy for Macy's to engineer a better performance", Saunders said, noting that these numbers were also improved by the closure of its underperforming stores, which previously "dragged down" sales numbers.
Gennette added that the company performance in the first quarter "reflects solid execution of our North Star Strategy, including merchandising and marketing activities". Macy's also said business got a lift from an increase in spending from global tourists, the first time since 2014. Taken together, these positive factors give us confidence to raise both our sales and earnings guidance for the fiscal year.
Revenues rose roughly 3.6 percent to $5.5 billion, again surpassing analysts' expectations. Including licensed stores, same-store sales at Macy's rose 4.2%, while analysts expected an increase of 1%. Part of the jump can be attributed to the fact that Macy's shifted a friends and family promotional event to the first quarter from the second quarter this year. Stripping out impairment charges and other costs, earnings were 48 cents per share. The company anticipates recognizing additional charges of about $10 million related to the wind-down over the course of fiscal 2018. Bank of New York Mellon Corp raised its position in shares of Macy's by 28.0% in the fourth quarter.
For the thirteen-week period ended May 5, Macy's earned US$139mln, or US$.045 per share, which was more than a third higher than the year-ago quarter, when it earned US$78mln or US$.026 per share. This compares to $80 million, or 1.5 percent of sales, in the first quarter of 2017, apart from premiums on the early retirement of debt. Net cash used by financing activities in the first quarter of 2018 was $99 million, contrast with $273 million past year.
To combat rivals, the department store chain has been focused on rolling out new concepts in stores, like branded pop-up shops, and expanding its off-price business, Macy's Backstage. "Clearly that's wrong because that's where Macy's is", said Bob Phibbs, CEO of the Retail Doctor, a consulting firm, in an interview after the results came out. The Macy's e-commerce team in San Francisco will manage the ongoing China business with operational support from Fung Omni in Shanghai.
Equities analysts forecast that Macy's Inc.