Macy's Inc. (M) - Get Report posted stronger-than-expected fourth quarter earnings Tuesday, and repeated its full-year profit guidance, thanks in part to a "meaningful sales uptick" in the pre-Christmas period.
Macy's said adjusted earnings for the three months ending on February 1 were pegged at $2.12 per share, down 22.3$ from the same period last year but well ahead of the Street consensus forecast of $1.96 per share. Group net sales, Macy's said fell 1.46% to $8.337 billion, but again topped analysts' forecasts of an $8.318 billion tally.
Looking into the 2020 fiscal year, Macy's said it sees net sales in the region of $23.6 billion to $23.9 billion and adjusted earnings of between $2.45 and $2.5 per share.
“Taken as a whole, 2019 did not play out as we intended for Macy's, Inc. However, we executed well during the Holiday 2019 season," said CEO Jeff Gennette. "We were pleased with the significant trend improvement in the fourth quarter, including a meaningful sales uptick in the 10 shopping days before Christmas."
"Together with disciplined expense management, our solid sales results in the fourth quarter allowed us to deliver stronger-than-expected earnings results. Importantly, we exited the year with a clean inventory position,” he added.
Macy's shares were marked 1.3% higher in early Tuesday trading immediately following the earnings release to change hands at $15.64 each.