Macy’s stock saw a rise on Thursday following the release of their third-quarter earnings report, which surpassed Wall Street’s expectations.
Earnings and Sales Beat Estimates
For the third quarter, Macy’s reported adjusted earnings of 21 cents per share and sales of $4.86 billion. Analysts surveyed by FactSet had predicted no earnings on sales of $4.78 billion.
In comparison, during the same period last year, the company reported earnings of 52 cents per share on revenue of $5.23 billion.
Positive Outlook for the Holiday Season
Macy’s CEO, Tony Spring, expressed his satisfaction with the results, stating, “We delivered better-than-expected third-quarter results and are well-prepared for the upcoming holiday season with a healthy inventory position.” The company’s merchandise inventory decreased by 6% compared to the previous year.
Furthermore, Macy’s reported improved margins due to lower permanent markdowns within their brand and decreased costs.
Revised Fiscal Outlook
In light of the current uncertain economic environment, Macy’s adjusted its outlook for fiscal 2023. The company emphasized that this updated guidance takes into account potential risks and consumer pressures.
The revised forecast predicts earnings between $2.88 and $3.13 per share, compared to the previous guidance of $2.70 to $3.20 per share. Sales are expected to range from $22.9 billion to $23.2 billion, slightly higher than the previous estimate of $22.8 billion to $23.2 billion.
Stock Performance and Market Reaction
Macy’s stock enjoyed a 10% increase in premarket trading on Thursday, reaching $13.92 per share. However, throughout the year, the stock has declined by 29%.
Other retailers also experienced positive movement in premarket trading, with Nordstrom (JWN) seeing a 1.1% increase and Kohl’s (KSS) gaining 1.5%.
Market Futures
Early on Thursday, S&P 500 futures were down 0.2% and Dow Jones Industrial Average futures slipped 0.3%.
