Is This the Comeback Macy’s Has Been Striving For?

By Chris Lange Updated Jan 31, 12:16AM EST · Published Feb 26, 8:30AM EST

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Is This the Comeback Macy’s Has Been Striving For? — © Joe Raedle / Getty Images

Macy’s Inc. (NYSE: M | M Price Prediction) released its fiscal fourth-quarter financial results before the markets opened on Tuesday. The retailer posted $2.73 in earnings per share (EPS) and $8.46 billion in revenue, which compare with consensus estimates that called for $2.53 in EPS on revenue of $8.45 billion. The same period of last year reportedly had EPS of $2.82 and $8.67 billion in revenue.

During the latest quarter, comparable sales for owned stores was 0.4% and for owned-plus-licensed stores was 0.7%. Comparable sales for owned-plus-licensed stores in the 53rd-week-shifted calendar totaled 2.0%.

Asset sale gains for the fourth quarter totaled $278 million pretax, or $204 million after-tax, and $0.65 per diluted share. This compares to the fourth quarter of 2017, when asset sale gains totaled $368 million pretax, or $230 million after-tax, and $0.75 per diluted share.

Looking ahead to the 2019 full year, the company expects to see EPS in the range of $3.05 to $3.25 and comparable sales of owned-plus-licensed stores flat to up 1%. Consensus estimates call for $3.30 in EPS and $24.94 billion in revenue for the year.

[nativounit]

Jeff Gennette, Macy’s board chair and chief executive, commented:

Looking at the fourth quarter of 2018, while we delivered positive comparable sales against what was a strong holiday season in 2017, results were lower than our expectations. We experienced another quarter of double-digit growth in digital. We also saw continued improvement in our brick and mortar trends with the Growth50 stores outperforming the fleet.

Shares of Macy’s closed Monday at $24.36, in a 52-week range of $23.95 to $41.99. The stock has a consensus price target of $26.86. Following the announcement, the stock was up about 3% at $25.10 in early trading indications Tuesday.

[recirclink id=530596]

[wallst_email_signup]

Follow 24/7 Wall St. on Google

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.