Macy's, Inc. (NYSE:M) reported better-than-expected earnings for the first quarter which saw the department store operator raise its full year outlook.
It reported adjusted earnings per share (EPS) of $0.27, down from $0.56 in the year-ago quarter but ahead of Wall Street estimates of $0.18.
Net sales were down 2.7% to $4.85 billion, slightly ahead of the $4.84 billion expected.
“We are encouraged by our customers’ response to our Bold New Chapter strategy resulting in sales near the high end of our outlook,” Macy’s CEO Tony Spring said in a statement.
“Our teams executed with discipline and efficiency, which contributed to first quarter earnings that exceeded our expectations.”
On the back of its stronger-than-expected Q1 performance, the retailer raised its full year revenue and sales guidance.
It now expects net sales in the range of $22.3 billion to $22.9 billion, increasing the top end of its guidance range from $22.2 billion.
Adjusted EPS is expected to be in the range of $2.55 to $2.90, compared to its earlier guidance of $2.45 to $2.85.
“Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s can return to sustainable, profitable growth,” Spring commented.
After initially rising almost 3% at the open, Macy’s shares traded 0.9% lower late morning at about $19.