Macy's Shares Jump on Holiday Results

Macy's signs at store entrance

Drew Angerer / Staff / Getty Images

Key Takeaways

  • Shares of Macy's (M) jumped higher after the retailer posted strong numbers for the holiday quarter and provided an upbeat outlook for the full year.
  • The largest U.S. department store chain beat expectations on EPS and revenue in the fourth quarter of 2022.
  • Macy's shares skyrocketed 11% on March 2, 2023, bringing the stock into positive territory on the year.

Macy's (M) shares soared 11% as the biggest U.S. department store chain posted better-than-expected results during the holiday quarter, and gave upbeat full-year profit guidance.

Macy's reported earnings per share (EPS), excluding a tax benefit, came in at $1.71, beating estimates. Revenue fell 4.6% to $8.26 billion, slightly above forecasts. Macy's also reduced its inventory, which dropped 3% from a year ago and 18% from 2019, prior to the COVID-19 pandemic slump in sales.

Acting Prudently

CEO Jeff Gennette said the company benefited from a "disciplined inventory approach and compelling gift-giving strategy." He explained that Macy's was "competitive but measured in our promotions, took strategic markdowns, and intentionally did not chase unprofitable sales."

Macy's anticipates 2023 EPS of $3.67 to $4.11, at the high end of analysts' predictions. The company noted that it believes "macroeconomic uncertainty" will continue this year, adding that it was taking a "prudent approach" to its outlook.

With the gains posted by the stock on March 2, shares of Macy's are now positive for 2023.

Article Sources
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  1. Macy's. "Macy's, Inc. Reports Fourth Quarter and Full-Year 2022 Results."

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