Macy’s returns to profit in the fiscal fourth quarter
- Macy’s returns to profit in fiscal Q4 despite COVID-19 restrictions.
- The retailer reports a 21% increase in its fourth-quarter digital sales.
- Macy’s shares were more than 3% up in premarket trading on Tuesday.
Macy’s Inc. (NYSE: M) published its earnings report for the fiscal fourth quarter on Tuesday that beat Wall Street estimates. In the holiday quarter, the American holding company set out to slash inventories and minimise its dependence on deep discounting.
Macy’s shares were reported more than 3% up in premarket trading on Tuesday. The stock is now exchanging hands at £11.24 per share after recovering from a low of £3.16 per share in the first week of April 2020, when the COVID-19 crisis was at its peak. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.
Macy’s Q4 financial results versus analysts’ estimates
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According to Refinitiv, experts had forecast the company to print £4.62 billion of revenue in the fourth quarter. Their estimate for per-share earnings was capped at 8.52 pence. In its report on Tuesday, Macy’s topped both estimates posting £4.82 billion of revenue in the quarter that concluded on 30th January, and a sharply higher 56.82 pence of earnings per share.
In separate news from the United States, the multinational drug manufacturer, Johnson & Johnson, said on Tuesday that it set aside roughly £2.84 billion for talc verdict.
Macy’s said that its net income in the recent quarter came in at £113.63 million versus the year-ago figure of £241.47 million. In the same quarter last year, the U.S. retailer had registered £5.92 billion in sales.
On an owned plus licensed basis, Macy’s comparable-store sales in the fourth quarter saw an annualised decline of 17.1%. Analysts, on the other hand, had called for an even broader 21.3% year over year decline in its same-store sales in Q4.
Macy’s reports a 21% increase in its Q4 digital sales
As per the retailer, its digital sales in the recent quarter jumped 21%. According to CEO Jeff Gennette, Macy’s hawkish performance in Q4 was primarily attributed to a higher demand for the company’s home products, jewellery, beauty products, and watched in recent months.
In comparison, Macy’s had noted a 20% decline in its third-quarter same-store sales, as per the report published in November.
Macy’s performed largely downbeat in the stock market last year with an annual decline of roughly 35%. At the time of writing, the American holding company has a market cap of £3.37 billion.