Macy's reports better-than-expected quarter with digital sales headed to $10 billion

Macy's reports better-than-expected quarter with digital sales headed to $10 billion

Macy's reports better-than-expected quarter with digital sales headed to $10 billion

Macy’s Inc. M, +2.07% stock rose 1.9% in Tuesday premarket trading after the department store retailer beat fourth quarter expectations. Net income totaled $160 million, or 50 cents per share, down from $340 million, or $1.09 per share, last year. Adjusted EPS of 80 cents per share blew past the FactSet consensus for 11 cents. Sales of $6.78 billion were down from $8.34 billion last year but also beat the FactSet consensus of $6.48 billion. Comparable sales fell 17% on an owned basis, and were down 17.1% on an owned-plus-licensed basis. The FactSet consensus was for a 23% decline. Digital sales were up 21%, with digital penetration reaching 44% of net sales. “Performance was driven by the home, beauty, jewelry and watch categories, growth in digital sales and by acquiring new customers,” said Macy’s Chief Executive Jeff Gennette in a statement. “We anticipate annual digital sales to reach $10 billion within the next three years, and that digital will become an even more profitable contributor to our business.” Macy’s forecasts fiscal 2021 sales of $19.75 billion to $20.75 billion and adjusted EPS of 40 cents to 90 cents. The FactSet consensus is for sales of $20.06 billion and EPS of 75 cents. Macy’s stock has rallied nearly 47% over the last three months, though it has slumped nearly 6% for the past year. The benchmark S&P 500 index SPX, -0.77% is up 16.1% for the last 12 months.