Shares of Macy's closed Tuesday at $29.93, with a consensus analyst price target of $29.71 and a 52-week trading range of $17.41 to $32.45.
The company reported revenues of $5.5 billion and earnings of 48 cents per share. This compares to $0.26 per share in the first quarter of 2017 for both stated and adjusted diluted earnings per share. On an owned-plus-licensed basis, comparable sales were up 4.2% in this quarter. ING Groep NV raised its position in Macy's by 20.6% during the first quarter. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin", he said. The winning formula for Macy's, Inc.is a healthy brick & mortar business, robust e-commerce and a great mobile experience.
Chief Executive Officer Jeff Gennette said on an earnings call the company saw double-digit growth in its digital business and continued healthy consumer spending. It also recently bought the concept store called Story, which rotates themes and what it sells every few months, and brought Story's founder Rachel Shechtman aboard to create better shopping experiences at Macy's.
"Our first quarter performance reflects solid execution of our North Star Strategy, counting merchandising and marketing activities".
Chief Executive Jeff Gennette said in prepared remarks that Macy's "saw continued healthy consumer spending and significant improvements in global tourism".
Consumer spending aside, Macy's strong results were also impacted by having a low bar for success given that same-store sales dropped by 5.2% the year before.
Analysts expect the retailer to disclose revenue of $5.43B and EPS of $0.37.
Same-store sales rose 4.2% at Macy's Inc - which also owns Bluemercury and Bloomingdale's - beating Wall Street's 1.4% average estimate and marking its second consecutive quarter of positive same-store sales growth. The department store retailer's operating income increased almost 8.7% year over year to $238 million, or about 4.3% of sales.
The company is raising its profit guidance for fiscal 2018. Bank of New York Mellon Corp raised its position in shares of Macy's by 28.0% in the fourth quarter.
Net income totaled $139 million for the quarter, or 2.5 percent of sales, compared to $78 million, or 1.5 percent of sales, for the same quarter previous year. Sales, earnings, and cash flow all came in ahead of what the company predicted, prompting the retailer to raise its outlook for the rest of the year. During the same quarter a year ago, the business posted $0.24 earnings per share. (NYSE:M) by 10.4% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. BMO Capital Markets set a $38.00 price target on shares of Macy's and gave the company a buy rating in a research report on Friday, January 5th. The company said it is ending a joint venture with China's Fung Retailing that began in 2015.
The company also saw a boost from global tourism but said it would be ending its joint venture with Fung Retailing Limited in China.
Macy's stock opened at $31.24 on Monday.
Macy's Inc raised its full-year profit forecast on Wednesday and reported better-than-expected quarterly and same-store sales, helped by strong worldwide tourism spending, a new loyalty program and a greater assortment of products offered in stores.