Macy’s Beats Analysts Expectations Despite a Big Sales Decline

Shares of department store chain Macy’s saw some gains on Thursday ater reporting its results for the fiscal Quarter ending Oct 2017.

The report was released in pre market trading and sent shares of the stock up 8% by the afternoon.

Macy’s reported earnings of 23 cents a share, excluding items. Wall Street had expected 19 cents a share. Revenue at $5.28 billion was slightly lower than the $5.31 billion expected by analysts. Same store sales fell 3.6% for the quarter, also steeper than the 2.6% waited for by analysts.

The store also reaffirmed its guidance for the full year as it heads into the holiday season.

“We expect continued improvement in our trends in the fourth quarter, including a solid lift from loyalty and digital, and intend to head into 2018 with momentum,” said CEO Jeff Gennette in a statement.

It was in August that the company had also declared a decline in same store sales and Gennette had said to CNBC, “Macy’s “[isn’t] ready to declare when we will get back to positive.”

“A highlight of the third quarter was the launch of the new Star Rewards loyalty program — our best customers are responding positively,” Gennette remarked in the earnings release. “We also saw continued double-digit growth in digital and are encouraged by the potential of Backstage in Macy’s stores.”

The company is in the process of a turnaround and is also exploring options within its real estate portfolio.
Disclaimer: We have no position in Macy’s Inc. (NYSE: M) and have not been compensated for this article.