Investing.com - U.S. department store operator Macy's (N:M) reported stronger than expected fourth quarter earnings ahead of Tuesday's opening bell, sending its shares higher in pre-market trade.
Macy’s said adjusted earnings per share came in at $2.09 in the three months ended December 31, above expectations for adjusted earnings of $1.89 per share.
The company’s fourth quarter revenue totaled $8.87 billion, beating forecasts for revenue of $8.83 billion.
Comparable sales on an owned plus licensed basis for the fourth quarter were down 4.3%. On an owned basis, fourth quarter comparable sales declined by 4.8%, better than estimates for a drop of 5.2%.
“While 2015 was challenging, our sales trend improved in January as the weather turned colder in northern climate zones and Macys and Bloomingdales were well-stocked in coats, boots, sweaters, gloves, hats and other seasonal goods," said Terry J. Lundgren, Macys chairman and chief executive officer.
Looking ahead, the mall-based retailer expects 2016 full-year earnings to come in a range between $3.80-to-$3.90, compared to market forecasts of $3.84.
Following the release of the report, Macy’s shares rallied 6.47%, or 2.66%, in pre-market trade to $43.70 from Monday's closing price of $41.04.
Meanwhile, the outlook for U.S. equity markets was downbeat. The Dow futures indicated a loss of 0.1% at the open, the S&P 500 futures pointed to a decline of 0.2%, while Nasdaq 100 futures slumped 0.35%.