Macy’s third-quarter results easily topped analyst estimates as it registered growth across its portfolio of store banners.
Net income was $11 million, or four cents per diluted share, versus $28 million, or 10 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, net income was $26 million, or nine cents per diluted share, versus $11 million, or four cents per diluted share, in the year-before period.
A Zacks Investment Research analyst consensus estimate called for a loss of 13 cents per adjusted diluted share and revenues of $4.6 billion.
Macy’s, Inc. reported comparable sales gains of 2.5% on an owned basis and 3.2% on an owned-plus-licensed-plus-marketplace basis, surpassing the company’s guidance range and benefiting from better-than-expected performance across retail nameplates, the company reported. The company’s 125 Reimagine locations achieved comp growth of 2.3% on an owned basis and 2.7% on an owned-plus-licensed basis, continuing to outperform the broader Macy’s banner, the company stated.
Bloomingdale’s comps advanced 8.8% on an owned basis and 9% on an owned-plus-licensed-plus-marketplace basis basis, while Bluemercury comps increased 1.1%.
Net sales were $4.71 billion while total revenue was $4.91 billion versus $4.74 billion and $4.9 billion, respectively, in the year-previous quarter. Operating income was $42 million versus $64 million in the year-before period.
Macy’s updated full-year guidance for net sales to $21.48 billion to $21.63 billion from $21.15 billion to $21.45 billion; comparable sales to flat to up 0.5% from down 1.5% to down 0.5%; and adjusted diluted earnings per share of $2 to $2.20 from $1.70 to $2.05 previously.
In a conference call, Tony Spring, Macy’s chairman and CEO, said that despite Macy’s better-than-anticipated results, “consumers are more discerning” about their spending. To maintain momentum, he said, the company assembled a compelling assortment for the holidays that would appeal to this year’s seasonal shoppers. He added that, in the third quarter, all Macy’s product lines had positive sales. At Bloomingdales, he noted, tabletop was among the outperforming categories.
Spring said, “Our third-quarter sales were the strongest in 13 quarters, reflecting the acceleration of our ‘Bold New Chapter’ strategy and demonstrating that the meaningful enterprise-wide changes we’ve made are resonating with customers. As we enter the holiday season, we are well-positioned with compelling new merchandise and an omnichannel customer experience that delivers both inspiration and value. With a strategy rooted in hospitality, our teams are focused on driving long-term, profitable growth.”
