Macy’s (NYSE: M) on Tuesday reported earnings and same-store sales for the holiday period that topped analysts' expectations, as investments in its loyalty program, fewer flash sales and a trimming of its real estate started to pay off.
The department store chain said it would be accelerating initiatives related to its stores, technology and merchandising to return the business to same-store sales growth for the current year. Same-store sales for fiscal 2017 were down 2.2%.
Macy's reported Earnings per Share of $2.82, adjusted, vs. $2.71 expected. Revenues came in at $8.67 billion vs. $8.68 billion expected, while same-store sales: a 1.3% increase vs. growth of 0.1% expected.
Macy's reported net income of $1.33 billion, or $4.31 a share, compared with $475 million, or $1.54 per share, a year ago. The company said its earnings were boosted by seven cents a share due to new U.S. tax legislation.
Excluding one-time items, Macy's earned $2.82 a share, topping Street estimates of $2.71 per share.
Looking to fiscal 2018, Macy's said it expects earnings for the year to fall within the range of $3.55 to $3.75 per share. The retailer is calling for same-store sales to be flat to up 1%, as total revenue is expected to fall between 0.5% and 2%.
The company recently revealed the 11 stores it's in the process of closing early this year, as part of a previously announced plan to trim a massive store fleet and cut back on expenses. Macy's said the closures, along with other efforts, should help it save as much as $300 million annually
Macy’s shares galloped $3.21, or 11.7%, to $30.66 in early Tuesday trading
