What Has Macy's (M) Soaring?

NEW YORK (TheStreet) -- Macy's (M) is soaring in early morning trading on Thursday after a series of announcements after the bell a day earlier. Shares had spiked 7.1% to $55.49 by market open.

On Wednesday, the retailer reported comparable store sales, including those from departments licensed to third parties, rose 4.3% over November and December, the key holiday shopping season months.

"Even in a questionable macroeconomic environment with challenging weather in multiple states, the positive response from our customers during the holiday season is yet another vote of confidence that our well-established strategies continue to work for us," said CEO Terry J. Lundgren in a statement.

The company also maintained its prior full-year earnings guidance to between $3.80 and $3.90 a share and said it expects comparable sales growth in the second half of 2013 to be in the range of 2.8% to 2.9%. Macy's is scheduled to report fourth-quarter earnings on Feb. 25. Analysts surveyed by Thomson Reuters expect net income of $3.87 a share for fiscal 2014.

For fiscal 2015, Macy's anticipates comparable sales to increase between 2.5% and 3% and net income in the range of $4.40 to $4.50 a share. Analysts have consensus of $4.37 a share.

In a separate press release, the Cincinnati-based business said it hoped to realize approximately $100 million per year as it implements a series of cost reductions including store closings and 2,500 layoffs.

"We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope. As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness," said Lundgren.

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