Macy’s (NYSE:M) shares jumped Thursday, as the company said it drew holiday shoppers looking for gifts and held the line on promotions.
But the department store operator, which includes higher-end banner Bloomingdale’s and beauty chain Bluemercury, said it is still planning for a choppier year ahead.
Macy’s said it expects net sales to decline in a range of 1% to 3% in the fiscal year compared with 2022, which would translate to between $23.7 billion to $24.2 billion. It said it expects its adjusted diluted earnings per share will range from $3.67 to $4.11.
On a call with investors, CEO Jeff Gennette said Macy’s anticipates discretionary spending to remain under pressure as consumers “continue shifting towards services and essential goods.”
In the coming year, he said Macy’s is focused on driving sales by refreshing its private brands, opening more off-mall stores and growing its luxury business and online marketplace.
Quarterly earnings per share proved to be $1.71, compared to the expected $1.57.
Net income for the fourth quarter fell to $508 million, or $1.83 per share, from $742 million, or $2.44 a share, a year earlier. The company reported adjusted per share earnings of $1.88. Excluding a tax benefit in the quarter, adjusted earnings per share come out to $1.71.
Comparable sales on an owned-plus-licensed basis were down 2.7% during the period from a year ago, but up 3.3% versus the fourth quarter in 2019.
M shares popped $1.95, or 9.5%, to $22.38
