Macy's Q4 Results Surpass Estimates By Analysts

Macy’s reported strong fourth-quarter sales and profits that exceeded Wall Street estimates even as the department store faced numerous challenges from supply chain issues to labor shortages and inflation, Anne D’Innocenzio reported for the Associated Press (AP).

Photo Insert: The New York-based company will not spin off its eCommerce division from its physical stores.

The New York-based company also said that it would not spin off its eCommerce division from its physical stores, rejecting a push from an activist investor Jana to separate the businesses to create better value, similar to what Saks Fifth Avenue did early last year. The decision came after a comprehensive review, Macy’s said.

The company reported profits of $742 million, or $2.44 per share, for the three-month period ended Jan. 29. That compares with $160 million, or 50 cents per share, in the year-ago period.

Adjusted earnings were $2.45 per share. Revenue was $8.66 billion, up nearly 30% from $6.78 billion in the year-ago quarter. Analysts were expecting profits of $2.01 per share on $8.46 billion in sales.

Sales at store opened at least a year — a critical measure for a retailer’s health — rose 28.3%. That excludes licensed businesses like cosmetics. Online sales were up 12% for the quarter.

Roughly 7.2 million new customers shopped the Macy’s brand during the quarter, an 11% increase versus the fourth quarter of 2019. During the fourth quarter of 2021, 58% of new customers came through the digital channel, the company said.

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