People wear facial masks as they walk through Herald Square on January 8, 2021 in New York.
Angela Weiss | AFP | Getty Images
Macy’s reported its first quarterly profit in a year on Tuesday because of its efforts to cut inventories during the holiday quarter and rely less on deep discounts paid.
The company said it expects 2021 to be a year of “recovery and reconstruction” as it recovers from the losses it suffered during the pandemic. It provided an outlook for earnings and sales, which he said he considers continuing the pandemic-related obstacles in the spring, and the momentum has grown in the back half of 2021.
Macy’s shares rose more than 1% in premarket trading.
Here’s how the company did in the fourth quarter ended January 30, compared to what analysts anticipated, based on a survey conducted by Refinitiv:
- Earnings per share: 80 cents, adjusted, compared to 12 cents, expected
- Revenue: $ 6.78 billion compared to $ 6.5 billion, expected
Net income for the quarter ended Jan. 30 fell to $ 160 million, or 50 cents a share, from $ 340 million, or $ 1.09 a share, a year earlier. With the exception of single taxes, the company earned 80 cents per share, better than the 12 cents expected by analysts.
Sales fell to $ 6.78 billion from $ 8.34 billion a year ago. This came in better than the $ 6.5 billion analysts expected.
Macy’s said its sales in the same store, on a owned and licensed basis, fell 17.1% from 2019. Analysts called for a 21.3% drop, according to Refinitiv data.
E-commerce sales have increased by 21% recently.
Macy’s said it expects its annual online sales to eclipse $ 10 billion over the next three years.
CEO Jeff Gennette noted that the company saw the most strength in the home, beauty, jewelry and watches this quarter.
Looking ahead to fiscal year 2021, Macy’s expects sales to range from $ 19.75 billion to $ 20.75 billion. Analysts demanded annual revenues of $ 20.13 billion.
Adjusted earnings per share are expected to be between 40 and 90 cents. Analysts forecast adjusted earnings of 77 cents per share.
Read the full press release and materials from Macy’s here.
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