Macy's Shares Jump on Holiday Results

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Updated March 02, 2023
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
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

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

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