Macy’s showed progress in its first quarter, beating Wall Street estimates and asserting that it was gaining traction with its omnichannel growth strategies.
For the first quarter, Macy’s beat a Wall Street analyst estimate by 11 cents when it posted company net earnings of $136 million, or 44 cents per diluted share, versus $139 million, or 45 cents per diluted share, in the year-earlier period.
Adjusted for one-time events, company net income was $137 million, or 44 cents per diluted share, versus $149 million, or 48 cents per diluted share, in the quarter a year prior. Adjusted earnings per diluted share topped a MarketBeat-published analyst consensus estimate of 33 cents.
Comparable sales in company-owned stores gained 0.6% versus the quarter a year past. Comps for company plus licensed stores gained 0.7% in the period year over year.
Net sales were $5.5 billion versus $5.54 billion in the year-previous quarter. Operating income slipped to $203 million from $238 million in the period a year before.
Jeff Gennette, Macy’s chairman and CEO, said the company had seen traction in key initiatives designed to boost its department store and off-price outlet businesses.
Gennette said, “Macy’s is off to a solid start this year, delivering our sixth consecutive quarter of comparable sales growth and making progress against the North Star Strategy. As an omnichannel retailer, we are focused on growing our customer base by providing a great experience across all channels and taking market share category by category. Our brick and mortar sales trend improved sequentially in the first quarter, supported by the Growth50 stores and Backstage. We had another quarter of double-digit growth in our digital business, and mobile continues to be our fastest-growing channel. We are pleased with the progress we are making on our strategic initiatives as they continue to drive top-line growth, keeping us on track to reach our 2019 goals. We believe these initiatives, coupled with productivity improvements, position our company well for long-term profit growth.”