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Macy’s Stock Jumps on Unexpected Sales Growth, Raised Outlook
NEW YORK – Macy’s (NYSE: M) shares surged Wednesday after the retailer reported first-quarter earnings adn sales that exceeded analyst expectations, fueled by a surprising increase in comparable sales. The stock climbed sharply following the release, as investors reacted positively to the company’s performance and optimistic outlook for the remainder of the year.
The results signal a potential turning point for Macy’s,which has been navigating a challenging retail landscape marked by shifting consumer preferences and economic uncertainty. The company’s success in growing comparable sales-a key metric for retailers-despite a slight overall revenue decline, demonstrates the effectiveness of its strategic initiatives and positions it for continued growth. This news impacts investors, retail industry analysts, and Macy’s employees as the company aims to solidify its position as a leading multi-brand retailer.
Macy’s reported adjusted earnings per share of $0.41,more than double the $0.20 consensus estimate from visible Alpha. Revenue for the quarter totaled $5.0 billion, a nearly 2% decrease year-over-year, but still surpassing forecasts. Notably, comparable sales rose 0.8%, defying expectations of a 0.3% decline, according to Visible Alpha.
The positive trend extended across Macy’s brands. While sales at Macy’s stores were down 3.8%, comparable sales within those stores increased 0.4%. The company’s “Reimagine” stores-125 locations undergoing modernization-saw an even stronger performance, with comparable sales up 1.1%. Bloomingdale’s experienced growth in both sales (4.6%) and comparable sales (3.6%), while Bluemercury saw increases of 3.3% and 1.2%, respectively.
Cost control measures also contributed to the strong results. Macy’s reduced selling, general, and administrative expenses by $29 million to $1.9 billion,driven by store closures and broader cost-cutting strategies.
“Macy’s had its strongest comparable sales growth in 12 quarters,” said CEO Tony Spring, attributing the performance to the company’s “advantages of being a multi-brand, multi-category, omni-channel retailer.”
Looking ahead,Macy’s raised its full-year adjusted EPS guidance to a range of $1.70 to $2.05,up from its previous forecast of $1.60 to $2.00. The company now anticipates full-year sales between $21.15 billion and $21.45 billion, compared to its earlier projection of $21.0 billion to $21.4 billion.
Despite today’s gains, Macy’s shares remain approximately 4% lower year-to-date.
