Macy’s Inc (M.N) on Wednesday reported higher-than-expected -quarterly sales and earnings, helped by more promotions and advertising, and the department store chain said business had improved as the quarter progressed.
Shares of Macy’s rose 8.1 percent to $50.08 in premarket trading on relief that the retailer was back on track after posting disappointing sales in August for the prior quarter. At the time, it said consumers had been gravitating toward less-expensive merchandise.
But business picked up markedly in the third quarter ended November 2. The company said comparable sales, which include those online and at stores open at least a year, rose 3.5 percent, while analysts were expecting them to be up 2.1 percent, according to Thomson Reuters I/B/E/S.
Chief Executive Officer Terry Lundgren said in a statement that the uptick in sales, which was more pronounced in October, gave him “confidence” about the holiday quarter.
Macy’s reported net income of $177 million, or 47 cents a share, for the quarter, compared with $145 million, or 36 cents per share, a year earlier. Analysts had been expecting a profit of 39 cents per share.
Despite those results, Macy’s stuck by its previous forecast for a profit of $3.80 to $3.90 per share for the year, which was nonetheless higher than Wall Street projections of $3.78.
REUTERS
