Macy's Shares Spike After Stronger-Than-Expected Holiday Sales Estimate

Macy's said its November/December same store sales declined when compared to last year, but the slippage was far less than expected and suggests a potential turnaround for the struggling mall-based retailer.
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Macy's Inc. (M) - Get Report shares jumped higher in pre-market trading Wednesday after the retailer posted better-than-expected same store sales data for holiday period.

Macy's said comparable-store sales for the months of November and December fell 0.7% from the same period last year, well ahead of the 2.5% decline forecast by analysts that cover the mall-focused retailer. On an owned plus licensed basis, comparable sales fell 0.6%, Macy's said.

 “Macy’s performance during the holiday season reflected a strong trend improvement from the third quarter. Our digital business and Growth150 stores performed well," said CEO Jeff Gennette. "Additionally, customers responded to our gifting assortment and marketing strategy, particularly in the 10 days before Christmas.” 

“The entire organization committed to delivering Holiday 2019, and it showed up in our execution. I want to thank all of our colleagues – full-time, part-time and seasonal – for their hard work and dedication to serving our customers," he added.

Macy's shares were marked 4.22% higher in early Wednesday trading following the sales update to change hands at $18.42 each, a move that would still leave the stock nursing a 14.5% decline over the past six months. 

Macy's shares were also getting support from a report that suggested the retailer would close 28 stores -- as well as one Bloomgingdale's outlet -- as part of its broader cost-cutting program.