People wear face masks as they walk through Herald Square in New York City on January 8, 2021.
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 deep discounts are paying off.
The company said it expects 2021 to be a “recovery and reconstruction” year as it paves its way from the losses it suffered during the pandemic. It provided prospects for revenues and sales that it said it considers the ongoing spring pandemic-related hurdles, escalating in the second half of 2021.
Shares of Macy were up more than 1% in premarket trading.
Here’s how the company fared during the fourth quarter ended Jan. 30, compared to what analysts expected, based on a Refinitiv poll:
- Earnings per share: 80 cents, adjusted, versus 12 cents, expected
- Revenue: $ 6.78 billion vs. $ 6.5 billion expected
Net income for the quarter ended January 30 fell to $ 160 million, or 50 cents a share, from $ 340 million, or $ 1.09 a share, a year earlier. Excluding one-off costs, the company earned 80 cents a share, better than the 12 cents analysts expect.
Revenues fell from $ 8.34 billion a year ago to $ 6.78 billion. That came out better than the $ 6.5 billion analysts had expected.
Macy’s said same-store sales, on an ownership plus license basis, fell 17.1% from its 2019 level. Analysts called for a 21.3% decline, according to Refinitiv data.
Sales via e-commerce have increased by 21% in the past period.
Macy’s said it expects annual online sales to eclipse $ 10 billion within the next three years.
CEO Jeff Gennette noted that the company saw the most strength in the home, beauty, jewelry and watches during the quarter.
Aiming for fiscal 2021, Macy’s is calling for sales to be in a range of $ 19.75 billion to $ 20.75 billion. Analysts asked for annual sales of $ 20.13 billion.
It expects adjusted earnings per share to fall in the range of 40 cents to 90 cents. Analysts had predicted an adjusted profit of 77 cents a share.
Read Macy’s full press release and material here.
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