The Cincinnati-based company said net income for the quarter ended Nov. 2 came in at $177 million, or 47 cents a share. Earnings per share rose 31% compared to the year-earlier quarter and exceeded consensus expectations by 8 cents.
Macy's also beat on top line sales. The company reported net sales of $6.27 billion, above analysts' expectations of $6.19 billion, according to Thomson Reuters.
Shares were rising 5.4% to $48.83 before the market opened.
Comparable sales, which includes net sales from stores open at least one full fiscal year as well as online sales at macys.com and bloomingdales.com, rose by 3.5% in the quarter and, combined with sales from departments licensed to third parties, rose 4.6%, Macy's said, despite a rough quarter with softer-than expected back-to-schools sales and a two-week government shutdown.
Gross margin slipped marginally in the quarter. Macy's reported third-quarter gross margin at 39.2% of net sales compared to 39.6% in 2012.
Macy's reiterated its guidance provided in August 2013. Comparable sales are expected to increase in the range of 2.5% to 4% in the second half of 2013, and, for the full year, in the range of 2% to 2.9%.
Macy's had lowered its fiscal 2013 earnings expectations to $3.80 to $3.90 per diluted share in August after a disappointing second quarter. The company reiterated its earnings expectations for the year.