Macy’s
Inc. (NYSE: M)
reported earnings that came well ahead of analysts’ estimates along with sales
that matched expectations for the first quarter of 2019. Shares were up 2.7% in
premarket hours on Wednesday.
Net sales declined to $5.50 billion from $5.54 billion in the same period last year, but were in line with estimates. Comparable sales were up 0.6% on an owned basis, and 0.7% on an owned plus licensed basis.
On a reported basis, net income attributable to Macy’s Inc.
shareholders fell 2% to $136 million, or $0.44 per share, compared to the
year-ago quarter. Adjusted net income fell 8% year-over-year to $137 million, or
$0.44 per share.
“Our brick & mortar sales trend improved sequentially in
the first quarter, supported by the Growth50 stores and Backstage. We had
another quarter of double-digit growth in our digital business, and mobile
continues to be our fastest-growing channel,” said Jeff Gennette, Macy’s, Inc. Chairman
and Chief Executive Officer.
Asset sale gains totaled $43 million pre-tax, or $31 million
after-tax and $0.10 per share attributable to Macy’s, Inc. shareholders. This
compares to asset sale gains of $24 million pre-tax, or $18 million after-tax
and $0.06 per share in the prior-year quarter.
On May 9, 2019, the company entered into a new $1.5 billion, five-year Credit Agreement that will mature on May 9, 2024. This agreement replaces a previous $1.5 billion facility, which was set to expire in May 2021.
For full-year 2019, Macy’s expects net sales to be approx. flat compared with last year. Comparable sales are expected to be flat to up 1%, both on an owned basis, and on an owned plus licensed basis. Adjusted EPS is forecasted to be $3.05 to $3.25.
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