Macy's, Inc. (NYSE: M) reported earnings and sales that beat analysts' expectations, citing a healthier inventory position after the holiday season that prompted the company to hike its outlook for the full year.
Macy's reported Earnings per Share of 48 cents, adjusted, vs. 37 cents expected. Revenue was $5.5 billion vs. $5.4 billion expected, rising 3.6%
Same-store sales: an increased of 4.2% vs. an increase of 1.4% expected
CEO Jeff Gennette said in a statement Macy's exceeded expectations "across all three brands — Macy's, Bloomingdale's, and Bluemercury — as well as across all geographic regions and families of business" during the first quarter of fiscal 2018.
The company also saw a boost from international tourism but said it would be ending its joint venture with Fung Retailing Limited in China. Instead, Macy's will remain on Alibaba's (NYSE: BABA) TMall platform and focus efforts there.
Net income climbed to $139 million, or 45 cents per share, in the period ended May 5, from $78 million, or 26 cents a share, a year ago.
Looking to the full year, Macy's now expects earnings per share to fall within a range of $3.75 to $3.95, or 20 cents higher than a prior forecast. Analysts were calling for earnings of $3.61 a share.
Just last week, Morgan Stanley downgraded Macy's shares, citing declining sales and profit "pressure" from online players for the ratings change. Just a few days prior, Deutsche Bank put out a new note saying there's "limited upside" for investors in the department store space.
Macy’s shares boosted $2.66, or 8.9%, to $32.59
