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Macy's blows past expectations and raises guidance

Published 05/16/2018, 08:13 AM
Updated 05/16/2018, 09:43 AM
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Macy's reported first-quarter results that exceeded Wall Street estimates and raised its full year guidance, sending shares up as much as 12% ahead of Wednesday's opening bell.

The retailer earned an adjusted $0.42 a share as revenue rose 3.6% versus a year ago to $5.54 billion. Those figures easily beat the $0.35 and $5.43 billion that Wall Street analysts surveyed by Bloomberg were expecting. Additionally, owned plus licensed comparable sales surged 4.2%, far better than the 1% gain that Wall Street was expecting.

"The winning formula for Macy’s, Inc. is a healthy brick & mortar business, robust e-commerce and a great mobile experience," Macy's Chairman and CEO Jeff Gennette said in the earnings release.

"While we have more work to do, the continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business. Our best customer is responding well to the improvements we’ve made to her experience in our stores, on .com and through the Macy’s app."

Looking ahead, Macy's now sees adjusted earnings per diluted share of $3.75 to $3.95 in fiscal 2018, up from its previous estimate of $3.55 to $3.75.

Macy's is up 18.8% this year.

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