Department store Macy's Inc (NYSE: M)
reported fourth-quarter results Tuesday morning.
What Happened
Macy's said
it earned $2.73 per share in the fourth quarter on revenue of $8.455 billion versus expectations of $2.53 per share and $8.45
billion. Comparable sales on owned stores rose 0.4 percent in the quarter while comparable sales for owned plus licensed stores
were up 0.7 percent. The company said it recorded another quarter of double-digit growth in digital sales and continued improvement
in brick and mortar trends as Growth50 stores (50 experimental
stores) outperformed the fleet.
Asset sale gains for the quarter rose from $368 million pre-tax last year to $278 million pre-tax and totaled $389 million
pre-tax for the full fiscal year.
Why It's Important
Despite delivering positive comparable sales against 2017's strong holiday season, the company's performance came in less than
expected, Macy's CEO Jeff Gennette said in the earnings release. Nevertheless, the company is "a stronger business" into 2019 than
it was last year with "healthier stores" and a superior e-commerce platform.
Macy's said it has identified five pillars to drive growth in 2019, including:
- Expand Growth50 stores by another 100 units;
- Add Backstage locations to 45 stores;
- Focus on aggressive expansion of vendors and SKUs;
- A"mobile first strategy," and
- Focus on "destination businesses" to realize disproportionate through fine jewelry, big ticket and other items.
The stock traded around $24.80 per share in the pre-market session, up 1.8 percent.
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