Macy’s Inc. (NYSE: M) reported fourth-quarter and fiscal-year results before markets opened this morning.
The department store giant posted quarterly adjusted diluted earnings per share (EPS) of $2.05 on revenues of $9.35 billion. In the same period a year ago, Macy’s reported EPS of $1.70 on revenues of $8.72 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.99 and $9.3 billion in revenue.
On a GAAP basis, EPS totaled $1.83, excluding $0.21 per share related to early extinguishment of debt and $0.01 per share related to store closings.
For the full year, adjusted EPS totaled $3.46 on revenues of $27.69 billion, compared with a consensus estimate for EPS of $3.41 on revenues of $27.64 billion.
The company’s CEO said:
Going into 2013, our team is moving ahead with new plans and actions to sharpen our approach to localized merchandise assortments and marketing, which we continue to believe is Macy’s sustainable competitive advantage. We are accelerating progress in omnichannel strategies at Macy’s and Bloomingdale’s to bring together our efforts in stores, online and mobile in a manner that satisfies emerging shopping patterns and capitalizes on the strength of our inventory regardless of where the customer demand occurs.
One of the actions going into 2013 is a lawsuit against Martha Stewart Omnimedia Inc. (NYSE: MSO) and another against J.C. Penney Co. Inc. (NYSE: JCP) related to a contract between Macy’s and Martha Stewart that Macy’s thinks is exclusive and that Martha Stewart and Penney believe leaves room for other deals. The case went to court yesterday.
Macy’s said it expects 2013 same-store sales growth of about 3.5% and EPS in the range of $3.90 to $3.95. That is well above the consensus estimate that calls for EPS of $3.81.
When Nordstrom Inc. (NYSE: JWN) reported earnings last week, the company offered guidance below estimates and the shares got taken down. Macy’s will not have that problem today.
Shares are up about 4.4% in premarket trading this morning, at $40.22 in a 52-week range of $32.31 to $42.17. Thomson Reuters had a consensus analyst price target of around $45.60 before today’s results were announced.