Despite posting year-over-year declines, Macy’s beat Wall Street estimates for the third quarter as the company prepares to emphasize its gifting assortment for the holiday season.
Net income was $43 million, or 15 cents per diluted share, versus $108 million, or 39 cents per diluted share, in the year-prior quarter. Adjusted net income was $59 million, or 21 cents per diluted share, versus $143 million, or 52 cents per diluted share, in the period a year earlier, the company stated.
An analyst consensus estimate published by Yahoo Finance called for flat earnings per diluted share and revenues of $4.82 billion.
Macy’s comparable sales slid 7% at owned and 6.3% at owned plus licensed stores. At Macy’s banner stores, comps fell 7.6% on an owned basis and 6.7% on an owned-plus-licensed basis, with the off-price Backstage business (pictured above) and the beauty classification among the better performers. Bloomingdale’s comps declined by 3.2% on an owned basis and 4.4% on an owned-plus-licensed basis. Bluemercury comps gained 2.5%.
Net sales were $4.86 billion versus $5.23 billion in the year-before quarter, Macy’s reported. Operating income was $86 million versus $192 million in the period a year previous.
“We delivered better-than-expected top and bottom line third-quarter results and are entering the holiday period in a healthy inventory position,” said Jeff Gennette, Macy’s chairman and CEO. “Our portfolio of nameplates are leading gift-giving destinations across the value spectrum offering exclusive products. We have refined our gift assortment, simplified our promotions and improved our shopping experience. Looking forward, we have strong continuity with Tony Spring transitioning to CEO in February, and I am confident he and our leadership team will guide Macy’s, Inc. to sustainable long-term profitable sales growth in the future.”