Macy’s Inc shares had jumped 8.8% to US$22.22 by noon on Thursday following the release of better-than-expected fiscal fourth-quarter earnings and upbeat guidance for fiscal 2023.
For the quarter, the department store operator posted adjusted earnings per share of $1.88, above the consensus expectations of earnings per share of $1.57. Revenue of $8.26 billion came in modestly ahead of the expected $8.25 billion.
"In the fourth quarter, we benefited from our disciplined inventory approach and compelling gift-giving strategy, which allowed us to provide fresh fashion and style at great values for all our customers,” commented Macy’s CEO Jeff Gennette.
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“We were competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales."
For fiscal 2023, the company forecast earnings in a range of $3.67 to $4.11 per share, compared to the consensus estimate of $3.82 per share.
Revenue in fiscal 2023 is expected to be between $23.7 billion and $24.2 billion, below the $24.3 billion consensus expectation and representing a 1% to 3% drop from 2022.
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