Earnings

Macy’s earnings top estimates, retailer says it won’t spin off e-commerce from stores

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People wear facemasks as they walk through Herald Square on January 8, 2021 in New York City.
Angela Weiss | AFP | Getty Images

Macy’s on Tuesday reported fiscal fourth-quarter earnings and sales that outpaced analysts’ estimates and said that a strategic review has prompted the retailer to accelerate its turnaround plans.

It is rejecting calls from activist firm Jana Partners for it to split its e-commerce operations from its stores, following a similar move by Saks Fifth Avenue.

During the holiday period, the department store chain said it brought in roughly 7.2 million new customers. Chief Executive Jeff Gennette said the department store chain was able to deliver the solid results despite Covid-19 related disruptions, supply chain issues, labor shortages and elevated inflation.

Here’s how Macy’s did in its fourth quarter compared with what analysts were anticipating, based on a survey compiled by Refinitiv:

  • Earnings per share: $2.45 adjusted vs. $2 expected
  • Revenue: $8.67 billion vs. $8.47 billion expected

Net income for the three-month period ended Jan. 29 grew to $742 million, or $2.44 a share, from $160 million, or 50 cents per share, a year earlier. Excluding one-time items, the retailer earned $2.45 a share, better than the $2 that analysts were looking for.

Revenue grew to $8.67 billion from $6.78 billion a year earlier, beating expectations for $8.47 billion.

Same-store sales, on an owned-plus-licensed basis, rose 27.8% year over year. The metric was up 6.1% on a two-year basis.

Macy’s shares are down about 2% year to date, as of Friday’s market close. Its market cap is $7.7 billion.

Find the full earnings press release here.

This story is developing. Please check back for updates.

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