Macy’s first-quarter profit topped Wall Street forecasts as the retailer’s turnaround strategy takes hold and gathers momentum.
The department store operator reported earnings per share (EPS) of $0.27 U.S. versus $0.15 U.S. that was expected among analysts.
Revenue in the quarter totaled $4.85 billion U.S., narrowly missing the $4.86 billion U.S. that was the consensus forecast on Wall Street.
Macy’s is undertaking an aggressive turnaround strategy as it tries to grow sales across its portfolio of department stores that also includes Bloomingdale’s and beauty chain Bluemercury.
Earlier this year, the company said that it plans to close 150 of its Macy’s branded outlets, which is more than a quarter of its namesake locations.
At the same time, the company plans to open more Bloomingdale’s and Bluemercury stores, as well as smaller Macy’s stores located in suburban strip malls.
In its earnings news release, Macy’s said that it “continues to view 2024 as a transition and investment year.”
In terms of guidance, Macy’s raised its full-year outlook, saying it now expects sales of $22.30 billion U.S. to $22.90 billion U.S., which would represent a drop from $23.09 billion U.S. in 2023.
The company sees earnings per share of $2.55 U.S. to $2.90 U.S. for all of this year, up from a previous forecast of $2.45 U.S. to $2.85 U.S.
In the last 12 months, Macy’s stock has increased 28% to trade at $19.10 U.S. per share.
