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People wear face masks when walking in Herald Square on January 8, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Macy’s reported its first quarterly profit in a year on Tuesday, as its efforts to reduce inventory during the holiday quarter and rely less on large discounts paid off.
The company has said it expects 2021 to be a year of “recovery and rebuilding” as it recovers from the losses it suffered during the pandemic. It offered revenue and sales prospects that it said considered the hurdles from the pandemic to persist in the spring, with momentum picking up in the second half of 2021.
Macy’s shares rose more than 1% in pre-market trading.
Here’s how the company did in the fourth quarter ended Jan. 30, compared to what analysts expected, based on a survey by Refinitiv:
- Earnings per share: 80 cents, adjusted, vs. 12 cents, expected
- Revenue: $ 6.78 billion vs. $ 6.5 billion, expected
Net income for the quarter ended Jan. 30 fell to $ 160 million, or 50 cents per share, from $ 340 million, or $ 1.09 per share, a year earlier. Excluding one-time charges, the company earned 80 cents per share, better than the 12 cents expected by analysts.
Sales fell to $ 6.78 billion from $ 8.34 billion a year ago. This exceeded the $ 6.5 billion expected by analysts.
Macy’s said its same-store sales, on a plus-licensed basis, fell 17.1% from 2019 levels. Analysts were calling for a 21.3% drop, according to data from Refinitiv.
E-commerce sales increased 21% in the most recent period.
Macy’s has said it expects its annual online sales to eclipse $ 10 billion over the next three years.
CEO Jeff Gennette noted that the company saw the greatest strength in home, beauty, jewelry and watches during the quarter.
Turning to fiscal 2021, Macy’s is calling for sales to be in the $ 19.75 billion to $ 20.75 billion range. Analysts were claiming annual revenue of $ 20.13 billion.
He expects adjusted earnings per share to be in a range of 40 cents to 90 cents. Analysts had forecast adjusted earnings of 77 cents per share.
Read Macy’s full press release and docs here.
This story is developing. Please come back for updates.
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