People wear masks as they walk through 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 cut inventories during the holiday quarter and rely less on deep discounts were amortized.
The company said it expects 2021 to be a year of “recovery and reconstruction,” as it recovers from the losses it has suffered during the pandemic. It offered a earnings and sales outlook that, in his view, he considers the continuation of pandemic-related hurdles during the spring, with a boost that increased in the later half of 2021.
Macy’s shares rose more than 1% in premarket trading.
The following explains how the company did during the fourth quarter ended Jan. 30, compared to what analysts predicted, according to a Refinitiv survey:
- Earnings per share: 80 cents, adjusted, against 12 cents expected
- Revenue: $ 6.78 billion vs. $ 6.5 billion, projected
Net income for the quarter ended Jan. 30 fell to $ 160 million, or 50 cents a share, from $ 340 million, or $ 1.09 a share, a year earlier. Excluding single charges, the company earned 80 cents per share, better than the 12 cents expected by analysts.
Sales fell to $ 6.783 billion, from $ 8.34 million years ago. That was better than the $ 6.5 billion analysts expected.
Macy’s said its in-store sales, on more licensed property, fell 17.1% from 2019 levels. Analysts were calling for a 21.3% drop, according to Refinitiv data.
E-commerce sales increased 21% in the last period.
Macy’s 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 strongest strength in the home, beauty, jewelry and watches during the quarter.
Looking ahead to Prosecutor 2021, Macy’s is asking for sales to fall in the $ 19.75 to $ 20.75 million range. Analysts had demanded annual revenues of $ 20.113 billion.
He expects adjusted earnings per share to be between 40 and 90 cents. Analysts had forecast adjusted earnings of 77 cents per share.
Read the full press release and Macy’s material here.
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