Department store giant Macy’s Inc (M) reported a 107% jump in earnings for the third quarter helped by the combination of healthy brick & mortar stores, robust e-commerce, and a great mobile experience. The bottom line exceeded analysts’ expectations while the top line came in line with consensus estimates. Following this, the stock inched up over 1% in the premarket session.
Net income attributable to the company’s shareholders climbed 107% to $62 million and earnings jumped 100% to $0.20 per share. Adjusted earnings increased by 28.6% to $0.27 per share.
Net sales rose 2.3% to $5.4 billion. Comparable sales on an owned basis were up 3.1%, and on an owned plus licensed basis, they were up 3.3%. The results benefited from double-digit growth in the digital business and a strong stores performance.
Looking ahead into the full year 2018, the company narrowed its net sales growth outlook to the range of 0.3% to 0.7% from the prior range of flat to 0.7%. Adjusted earnings guidance is lifted to the range of $4.10 to $4.30 per share from the prior estimate range of $3.95 to $4.15 per share.
Comparable sales growth on an owned plus licensed basis forecast was tightened to the range of 2.3% to 2.5% from the prior range of 2.1% to 2.5%.
For the third quarter, asset sale gains after-tax fell to $31 million from $40 million in the previous year quarter.
The company said Macy’s, Bloomingdale’s and Bluemercury all performed well, and its strategic initiatives are gaining momentum and delivering results. Strategic initiatives put the company on track to deliver strong holiday season and fourth quarter. The brick and mortar stores are anticipated to see an improved trend with particularly strong results from its Growth50 stores.
Shares of Macy’s ended Tuesday’s regular session down 3.40% at $35.79 on the NYSE. The stock has risen over 42% in the year so far and over 85% in the past year.