NEW YORK (TheStreet) -- Shares of Macy's (M) - Get Macy's Inc Report were spiking 10.29% to $37.50 in pre-market trading on Thursday after the company reported better-than-anticipated results for the 2016 second quarter.
Before today's opening bell, the retailer posted adjusted earnings of 54 cents per share, surpassing analysts' expectations of 45 cents per share.
Revenue fell 3.9% to $5.87 billion year-over-year, but was higher than Wall Street's estimates of $5.74 billion.
"A number of factors worked in our favor in the second quarter, including a normalized weather pattern, which contributed to a sales lift in our apparel business in particular," CEO Terry Lundgren said in a statement.
"We also saw a smaller decrease in tourist spending during prime summer travel months, supported by strengthened promotional events designed to increase customer traffic and conversion," he added.
Comparable-store sales on an owned plus licensed basis were down 2% during the period, while comparable-store sales on an owned basis fell 2.6%.
For 2016, Macy's reaffirmed guidance for adjusted earnings per share between $3.15 and $3.40. Analysts are modeling earnings of $3.26 per share. Comparable-store sales are expected to decline between 3% and 4%.
Additionally, the company will close 100 stores to focus on its best-performing locations.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: M