Macy’s beats expectations and raises its guidance

Macy’s Inc. stock rose 6.5% in Tuesday premarket trading after the department-store retailer reported first-quarter earnings that beat expectations and raised its full-year guidance. Net income totaled $103.0 million, or 32 cents per share, after a loss of $3.6 billion, or $11.53 per share, last year. Adjusted EPS was 39 cents, ahead of the FactSet consensus for a loss of 39 cents. EPS and adjusted EPS in 2019 was 44 cents. Sales of $4.71 billion were up from $3.02 billion last year and ahead of the FactSet consensus for $4.36 billion. Digital sales growth was 34%. Comparable sales rose 62.5% on an owned basis and were up 63.9% on an owned-plus-licensed basis. The FactSet consensus was for a comparable sales increase of 44.9%. For full-year 2021, Macy’s is now guiding for sales of $21.73 billion to $22.23 billion, up from $19.75 billion to $20.75 billion previously, and adjusted EPS of $1.71 to $2.12, up from 40 cents to 90 cents previously. The FactSet consensus is for sales of $20.66 billion and EPS of 85 cents. Macy’s stock has rallied 70.3% for the year to date while the benchmark S&P 500 index is up 10.8% for the period.

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