Macy's same-store sales growth trumps estimates, shares rise

Wednesday, May 16 2018

Macy's same-store sales growth trumps estimates, shares rise

Home › News › Business › Macy's same-store sales growth trumps estimates, shares rise Macy's same-store sales growth trumps estimates, shares rise May 16, 2018 Macy’s Inc reported a much better-than-expected increase in quarterly same-store sales, beating estimates for the second straight quarter, offering hopes for a company struggling to boost sales in the face of intense online competition. Macy's Macy’s shares surged more than 13 percent in premarket trading after the company also raised its full-year profit forecast.The company said it would end its joint venture with China-based Fung Retailing Ltd but would remain active on Alibaba’s e-commerce platform TMall.The retailer’s 4.2 percent rise in same-store sales in the first quarter easily topped Wall Street’s 1.4 percent estimate.The quarter benefited from a change in accounting that shifted its Friends & Family promotional program from the second quarter to the first, the company said.“We exceeded our expectations and saw strong performance across all three brands — Macy’s, Bloomingdale’s, and Bluemercury — as well as across all geographic regions,” Chief Executive Officer Jeff Gennette said.Net income attributable to Macy’s shareholders rose to $139 million, or 45 cents per share, in the first quarter ended May 5, from $78 million, or 26 cents per share, a year earlier.Excluding one-time items, the company earned 48 cents per share topping analysts’ expectations by 11 cents.Net sales rose 3.6 percent to $5.54 billion in the quarter, also beating expectations. © Thomson Reuters 2018 All rights reserved.