The 1947 film “Miracle on 34th Street” tells the story of a child affected by a Macy’s Christmas Santa Claus. If only the main characters believed in Santa, their most precious dreams would come true. Macy’s Inc. (NYSE: M) reported barely believable figures for the most recent quarter. This turns around a tragic string of numbers that have been hard on investors.
[in-text-ad]
Macy’s posted revenue of $5.23 billion, just above analyst expectations. Earnings on an adjusted basis came to $0.52 per share, well above what Wall Street expected.
CEO Jeff Gennette did undermine his optimism a little. He said he saw a slowdown in sales at the end of the most recent quarter. However, he held to the retailer’s full-year forecast. That, given the economic environment, is a miracle in itself. Jeff Gennette told CNBC he was unsure. “Is that a slowdown in the consumer confidence that we are going to take all the way through the fourth quarter?”
Comparable sales at Macy’s flagship division fell 4.4% on an owned basis. Bloomingdale’s same-store sales increased by 5.3%. Sales at the Blue Mercury division surged 14.0%.
Inventory, which has been a problem for Macy’s, rose only 4% from last year. This should allow Macy’s to end the problem of excess inventory, which usually leads to discounts.
While net income did skid, it was still positive at $108 million, compared to $239 million last year.
24/7 Wall St.The only real mystery about Macy’s figures is that Gennette continues to push his Polaris strategy. Almost no one knows what that is, so he could skip the reference.
Gennette should get credit for a turn in the right direction.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
