Macy's Profit Up; Macy's Stock Up

Macy's beats first-quarter estimates by a penny and reaffirms guidance.
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NEW YORK (

TheStreet

) --

Macy's

(M) - Get Report

first-quarter earnings beat of a penny and upped sales guidance are sending shares rising in early trading.

While shares of Macy's were in the red in pre-market trading, Marcy's stock was rallying shortly after the open, climbing 3.6% to $24.77.

During the quarter, Macy's swung to a profit of $22 million, or 5 cents a share, compared with a loss of $88 million, or 21 cents, in the year-ago period. Analysts were calling for a profit of 4 cents a share.

Macy's sales reached $5.57 billion, handily beating Wall Street's forecast of $5.54 billion. Same-store sales jumped 5.5%, while online sales surged 34%.

The company said it received a boost from its My Macy's localization program, which tailors merchandise to different regions of the country and its customers.

>> Who Owns Macy's?: Maverick Capital

Looking ahead, Macy's still expects full-year earnings in the range of $1.75 to $1.80 a share. The company previously upped its guidance of $1.55 to $1.60 after it reported April same-store sales last week.

Macy's foresees sales growing between 3% and 3.5% during the year, better than prior guidance between 1% and 2%.

Still, management said "it is premature to raise annual guidance further at this time given the macro-economic uncertainty."

On Tuesday, Standard & Poor's upgraded Macy's to the verge of positive territory, expecting the company's operations to improve modestly over the next year as consumer spending increases.

-- Reported by Jeanine Poggi in New York.

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