NEW YORK – Macy’s Inc. (NYSE:) has experienced a notable surge in its share price today, following an impressive fiscal third-quarter performance that exceeded Wall Street expectations. The retailer’s stock soared by 7.5%. This uptick comes after a 17.4% rise over the past two sessions, potentially marking its best three-day performance since May 27, 2022.
CEO Jeff Gennette credited the company’s success to strategic adjustments, including refined gift assortment, streamlined promotions, and an improved shopping experience. Despite a decline in net income to $43 million from last year’s $108 million in the same quarter, Macy’s adjusted earnings of 21 cents per share were a significant beat against analysts’ breakeven expectations.
The retailer reported sales of $4.86 billion, down by 7.1% yet surpassing the forecasted $4.78 billion. Same-store sales saw a decrease of 7.0%, which was still a better outcome than the predicted 7.2% drop. Notably, Bloomingdale’s same-store sales decreased by 3.2%, while Bluemercury bucked the trend with a 2.5% increase in same-store sales.
Entering the holiday season, Macy’s finds itself in a robust inventory position, with inventory values down by 5.9% to $6.03 billion and gross margin improving from 38.7% to 40.3%.
Looking ahead, Macy’s has raised its fiscal 2023 adjusted EPS guidance range to $2.88-$3.13 from the previous $2.70-$3.20, adjusting the midpoint upwards to $3.01 from $2.95. Sales forecasts have also been revised higher to between $22.9 billion and $23.2 billion.
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