Macy's shares rocket after crushing fiscal 1Q revenue and profit estimates

Macy's shares rocket after crushing fiscal 1Q revenue and profit estimates

The company said its first-quarter same-store sales rose 4.2%, easily beating Wall Street's 1.4% average estimate, as sales rose at its Bloomingdale's, Bluemercury and its own Macy's stores.

M stock was up 9% as of Wednesday morning. The company traded as low as $31.70 and last traded at $31.67, with a volume of 4139089 shares changing hands. Excluding asset sale gains in the quarter, the company would have earned 42 cents per share which is up from 12 cents earned in the same quarter a year ago. Analysts were calling for earnings of $3.61 a share, according to a Thomson Reuters survey. Same-store sales climbed 4.2%, almost 3% points higher than analysts' prediction.

First-quarter earnings are in for Macy's Inc (NYSE:M), and the retailer has unwrapped a pleasant surprise for investors. "The winning formula for Macy's, a healthy brick & mortar business, robust e-commerce and a great mobile experience".

"The continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business", Gennette said in a statement. "Our best customer is responding well to the improvements we've made to her experience in our stores, and through the Macy's app." . The company credited healthy consumer spending and a boost in worldwide tourism. "Taken together, these positive factors give us confidence to raise both our sales and earnings guidance for the fiscal year", continued Gennette.

Same-store sales on an owned plus licensed basis were up 4.2 percent, almost 3 percentage points higher than the Street's forecast.

Neil Saunders, managing director of GlobalData Retail, pointed out in comments emailed to Retail Dive that Macy's in Q1 moved up its popular Friends and Family promotion (which previously came in the second quarter), and was also posting comps that compared favorably to an abysmal sales period in Q1 2017. Following the completion of the sale, the chief financial officer now owns 67,515 shares of the company's stock, valued at $1,984,265.85.

Macy's said a stellar performance at its businesses helped push quarterly same-store sales and profit well above Wall Street estimates, signaling the company was keeping up in a fiercely competitive retail landscape.

That is still slightly better than analysts' expectations of a 1.4% increase, but it suggests that Macy's may struggle to maintain its momentum in the sales-free second-quarter. The company anticipates recognizing additional charges of about $10 million related to the wind-down over the course of fiscal 2018. ING Groep NV raised its position in Macy's by 20.6% during the first quarter.

Net income attributable to Macy's shareholders rose to $139 million, or 45 cents per share, in the first quarter ended May 5, from $78 million, or 26 cents per share, a year earlier.