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Macy's shares surge as sales and profits beat forecasts

Macy's shares surge as sales and profits beat forecasts

Macy's, Inc., is an omni-channel retail company that operates outlets, mobile applications, and websites. American International Group Inc. now owns 23,923,612 shares of the company's stock valued at $602,636,000 after buying an additional 11,894,858 shares during the last quarter. The company's stock had a trading volume of 430,342 shares, compared to its average volume of 10,033,043.

Macy's reported a first-quarter profit of $0.48 per share (adjusted), topping the estimate for $0.37 and revenue of $5.54 billion, also beating the estimate for $5.36 billion.

The U.S. department store chain also issued comparable sales growth guidance that topped estimates, boosting its Macy's (M) shares 10 percent to $32.92 by midday. Its online sales increased by a double-digit percentage during the first quarter alone. Kistler Tiffany Companies LLC raised its position in shares of Macy's by 31.3% during the fourth quarter.

Macy's same-store sales on an owned basis grew 3.9%, and by 4.2% on an owned-plus-licensed basis, well above the FactSet consensus for a same-store sales increase of 0.7%.

Macy's Inc. posted a second straight quarter of sales gains and raised its full-year earnings outlook, a sign the department store is succeeding in luring back shoppers with its off-price offerings. We exceeded our expectations and saw strong performance across all three brands-Macy's, Bloomingdale's, and Bluemercury-as well as across all geographic regions and families of business. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin", he said.

"While we have more work to do, the continuing improvement in our stores is encouraging", Gennette said in a statement. She thinks Macy's needs to close more stores than it already has and may have made the most it can from real estate sales.

Gennette added that the company performance in the first quarter "reflects solid execution of our North Star Strategy, including merchandising and marketing activities".

Macy's benefited from healthy consumer spending and significant improvements in worldwide tourism. The department store retailer's operating income increased almost 8.7% year over year to $238 million, or about 4.3% of sales.

Macy's net sales in its first quarter amounted to US$5.54bln, coming in ahead of Wall Street's expectations of US$5.4bln. On an owned-plus-licensed basis, comparable sales were up 4.2% in this quarter. Ltd lifted its holdings in shares of Macy's by 78.4% in the first quarter.

For the period ended May 5, Macy's Inc. earned $139 million, or 45 cents per share. In the same period past year, net income was $78 million, or $0.26 per share. Net operating cash flow jumped 36% to $322 million. Net cash used by financing activities in the first quarter of 2018 was $99 million, contrast with $273 million previous year. The new initiative allows customers to scan a product using their Macy's app, pay with their Macy's credit card, then visit a dedicated counter to remove security tags before they can exit the store. Macy's has come to a mutual agreement to end the joint venture with Fung Retailing. Finally, Schwab Charles Investment Management Inc. raised its position in shares of Macy's by 22.6% in the fourth quarter.

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