Macy’s Q3 Profit Rises, Beats View; Ups Outlook

Macy’s, Inc. (M) on Thursday reported profit in the third quarter compared with loss last year, driven by significant increase in sales, helped by consumers continuing to spend and addition of about 4.4 million new customers for its brand. Earnings surpassed the Street estimates. The company also raised its full-year outlook.

In pre-market trade Macy’s shares are up more than 10% at $34.09. Wednesday, the stock closed at $30.84, down 1.45 or 4.49%.

Net income was $239 million or $0.76 per share in the third quarter compared with net loss of $91 million or $0.29 per share in the same quarter a year ago.

Excluding one-time items, earnings were $1.23 per share, significantly higher than the average estimate of thirteen analysts polled by Thomson Reuters of $0.31 per share. Analysts’ estimates typically exclude special items.

Revenue for the quarter increased to $5.44 billion from $3.99 billion last year. The consensus estimate was for $5.2 billion.

The company’s comparable sales were up 37.2% on an owned basis and up 35.6% on an owned-plus-licensed basis versus last year.

In the third quarter, the Macy’s brand added 4.4 million new customers.

For the full-year, the company has raised sales outlook to the range of $24.12 billion – $24.28 billion from $23.55 billion – $23.95 billion provided earlier.

Adjusted EPS for the full-year is expected to be in the range of $4.57 – $4.76, up from $3.41 – $3.75 guided earlier.

Analysts expect the company to report earnings of $3.89 per share on revenue of $23.78 billion for the year.

Additionally, Macy’s announced plans to launch a curated digital marketplace platform, which the company believes to enhance sales growth across all channels.

“Looking ahead to the fourth quarter, we remain a special place for holiday shopping, and our robust omnichannel ecosystem is showing resilience in the face of labor and supply chain challenges and enables us to meet customer shopping needs with speed and convenience,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.

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