May 28, 2023

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Macy's (M) announced that it beat earnings for the fourth quarter of 2021

Macy’s (M) announced that it beat earnings for the fourth quarter of 2021

Messi On Tuesday, it reported fiscal fourth-quarter earnings and sales that beat analyst estimates and said the strategic review had prompted the retailer to accelerate turnaround plans.

He refuses Calls from Activist Jana Partners in order to separate its e-commerce operations from its stores, following a similar move by Saks Fifth Avenue. Macy’s has been working with consulting firm AlixPartners to consider the best path forward for the business.

Macy’s shares rose more than 7% in premarket trading after the news.

During the holiday period, the supermarket chain said it brought in nearly 7.2 million new customers. CEO Jeff Jennett said the store chain was able to deliver solid results despite disruptions related to Covid-19, supply chain issues, labor shortages and rising inflation.

Here’s what Macy’s did in the fourth quarter compared to what analysts were expecting, based on a survey by Refinitiv:

  • Earnings per share: $2.45 adjusted vs. $2 expected
  • Revenue: $8.67 billion vs. $8.47 billion forecast

Net income for the three months ended Jan. 29 grew to $742 million, or $2.44 a share, from $160 million, or 50 cents a share, a year earlier. Excluding one-time items, the retailer earned $2.45 per share, better than the $2 analysts were looking for.

Revenue grew to $8.67 billion from $6.78 billion a year earlier, beating expectations of $8.47 billion.

Same-store sales, on an owning plus license basis, were up 27.8% year over year. Analysts were looking at same-store sales growth of 24.25%, according to Refinitiv. The measure is up 6.1% on a two-year basis.

Digital sales are up 12% year over year and up 36% year over year. E-commerce accounts for 39% of net sales.

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The company cited strong performance in categories including home, perfume, jewelry, watches and sleepwear.

Macy’s also offered an optimistic forecast for fiscal year 2022, calling for sales to be between $24.46 billion and $24.7 billion, which would be flat to 1% compared to 2021. Analysts were looking for revenue of $24.23 billion, which would have been a slight decrease from last year.

Macy’s sees adjusted earnings per share for the year to be between $4.13 and $4.52. This is better than what analysts were looking for at $4.04.

The company said in a press release that it expects positive momentum and strong consumer demand in the coming months. However, she said that macro challenges such as inflation, supply chain pressures and labor shortages will continue. She said her annual forecast takes this into account.

The key to Macy’s transformation has been to win back customers who left the department store chain over the past decade for competitors like Nordstrom And big chains like targetingor shop directly from brands like nike.

To maintain a share of consumer wallets, Macy’s has invested in launching more of its own brands, revamping its loyalty program, overhauling its website and opening smaller stores outside of malls with a more modern look. She has one concept called Market by Macy’s, and she’s also testing a smaller Bloomingdales store, Blooms.

Janette said Tuesday that Macy’s will be working to accelerate all of these initiatives and more.

“We are more confident on our way forward as one integrated company,” he said.

According to data from M Science, Macy’s has captured 18.6% of supermarket market share as of January. kohl by 21.6% and Nordstrom by 33.6%. However, M Science notes that Kohl’s has been losing stake significantly. Macy’s is up slightly from the 18.1% market share it had in July, according to the report.

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Also on Tuesday, Macy’s announced a new $2 billion share buyback program.

Macy’s shares are down about 2% year-to-date, as of the market close on Friday. Its market capitalization is $7.7 billion.

Find a full earnings press release here.