Macy’s reported fourth-quarter results on Tuesday morning, beating expectations for earnings
The retail giant posted adjusted earnings per share of $1.73 and revenues of $8.87 billion, topping forecasts.
Shares rose nearly 5% in pre-market trading.
Analysts had been expecting Macy’s to post $1.69 in adjusted earnings per share, below the company’s guidance of as much as $1.90. Revenues had been expected at $8.8 billion.
Comparable store sales — or sales at stores open for at least one year — were previously announced at -5.2%.
Macy’s had signalled that mild winter weather at the end of last year were hurting its sales for the fourth quarter. When the company reported sales for November and December last month, CEO Terry Lundgren said about 80% of the sales decline could be attributed to slow sales of winter apparel like sweaters and scarves.
The strong dollar also continued to keep international tourists away.
All this is besides a secular shift in the retail industry towards e-commerce that is forcing traditional retailers to invest heavily in their online prescence as fewer people physically visit stores.
Macy’s announced last month that it was closing 14 of its 790 stores in the coming months, which would relieve 1,300 people of their jobs.
The company’s shares have outperformed the market this year, up 17%, but for the past 12 months, they were down 36% ahead of the earnings announcement.
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