During the quarter ending Oct. 28, Macy's reported net sales of $5.28 billion, down 6.1% year over year and below the consensus estimate of $5.31 billion, according to FactSet data. Earnings of 23 cents per share, excluding restructuring costs, exceeded analysts' expected 19 cents per share and was well above the 5 cents per share reported in the same quarter in 2016.
Same-store sales fell 4%, Macy's 11th consecutive quarter of same-store sales declines.
CEO Jeff Gennette touted the launch of Macy's new Star Rewards loyalty program and double-digit digital growth.
"We are excited about our plans for holiday, which is when Macy's truly shines as a gifting destination," Gennette, who replaced longtime CEO Terry Lundgren in March, said in a statement. "The loyalty program, special in-store experiences and a strong mobile and online presence will help drive holiday sales. We are bringing our fashion authority to bear on holiday trends and have a strong product assortment.
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During the quarter, Macy's announced plans to close three stores in California early next year and added eight new freestanding Bluemercury beauty stores, for a total of 135. The company also added seven new Macy's Backstage discount stores within existing stores, for a total of 45.
Macy's also reaffirmed its full-year guidance. The company expects total sales to fall 3.2% to 4.3% in fiscal 2017, with earnings of $3.38 to $3.63 per share.
Macy's shares rose 3% to $18.09 in premarket trading Thursday.
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Editors' pick: Originally published Nov. 9.