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 reduce inventories during the holiday quarter and depend less on large discounts were rewarded.
The company said it expects 2021 to be a year of “recovery and reconstruction” as it recovers from the losses suffered during the pandemic. He offered a profit and sales outlook that considers the continuing obstacles related to the pandemic during the spring, with the momentum increasing in the second half of 2021.
Macy’s shares were up more than 1% in the pre-market.
Here’s how the company fared during the fourth quarter ended January 30, compared to what analysts were anticipating, based on a Refinitiv survey:
- Earnings per share: 80 cents, adjusted, vs. 12 cents, expected
- Revenue: $ 6.78 billion versus $ 6.5 billion, expected
Net income for the quarter ended January 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 was better than the $ 6.5 billion that analysts had expected.
Macy’s said its same-store sales, on its own, licensed basis, fell 17.1% from 2019 levels. Analysts had forecast a 21.3% drop, according to data from Refinitiv.
E-commerce sales grew 21% in the last period.
Macy’s said it expects its annual online sales to exceed $ 10 billion over the next three years.
CEO Jeff Gennette noted that the company saw more strength at home, beauty, jewelry and watches during the quarter.
Looking at fiscal year 2021, Macy’s expects sales to fall in the range of $ 19.75 billion to $ 20.75 billion. Analysts had forecast annual revenue of $ 20.13 billion.
She expects adjusted earnings per share to be in the range of 40 to 90 cents. Analysts had forecast adjusted earnings of 77 cents a share.
Read the full press release and Macy’s materials here.
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