Macy's (NYSE:M) exceeded analyst expectations in the third quarter, sending its shares nearly 11% higher in early New York trading on Thursday.
The company reported adjusted earnings per share of 21 cents, crushing expectations. Revenue came in at $5 billion, again ahead of the expected $4.79 billion. Macy's demonstrated a growth in gross margin from 38.7% to 40.3%.
The owned-basis comparable sales saw a decrease of 7%, while the owned plus licensed comparable sales decreased by 6.3%, beating the consensus of -7.8%.
“We delivered better-than-expected top and bottom line third quarter results and are entering the holiday period in a healthy inventory position. Our portfolio of nameplates are leading gift-giving destinations across the value spectrum offering exclusive products,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.
Looking ahead, Macy's forecasts an EPS for fiscal year 2024 in the range of $2.88 to $3.13, exceeding the consensus estimate of $2.77. It had previously expected EPS in the range of $2.70-3.20.
The company also anticipates net sales for the fiscal year to be between $22.9 billion and $23.2 billion, while the consensus of $23.12 billion.