It’s one of the retail institutions of America, very much in the public eye around Thanksgiving with the parade in Manhattan. But Macy’s (NYSE:M) has taken some knocks in recent years with its bottom line.
Thus, the relief felt was all the better when figures were announced Tuesday morning before the opening bell, proclaiming full-year sales surpassed last year’s at $24.971 billion, compared to $24.939.
Profit-wise, it was not so glorious, as net income attributable to shareholders registered at $1.108 billion, far behind last year’s $1.566 billion. Diluted earnings per share were $3.56, compared to $5.10 in the prior-year.
According to CEO Jeff Gennette, "2018 was an important year for Macy’s, Inc. as we changed the trajectory of the company and delivered positive comparable sales for the full year. I’m pleased with the impact of our strategic initiatives, particularly as they gained traction in the back half of the year.
"Looking at the fourth quarter of 2018, while we delivered positive comparable sales against what was a strong holiday season in 2017, results were lower than our expectations. We experienced another quarter of double-digit growth in digital. We also saw continued improvement in our brick and mortar trends with the Growth50 stores outperforming the fleet."
In the fourth quarter of 2018, Macy’s completed the sale of the former I. Magnin building in Union Square San Francisco for $250 million of cash proceeds and a gain of $178 million. Following the transaction, the Macy’s Union Square store will comprise approximately 700,000 gross square feet. Macy’s Union Square is one of the company’s flagship properties.
Shares increased 66 cents, or 2.7%, to $25.02
