Macy's Q1 Earnings Report: What You Need To Know

Macy's Inc M reported its first-quarter results, which sent shares higher by more than 8 percent to trade above its 52-week high of $32.45 in the pre-market session.

What Happened

Macy's said it earned 48 cents per share in the first quarter on revenue of $5.54 billion, which exceeded expectations of 35 cents per share and $5.39 billion. Excluding asset sale gains in the quarter, the company would have earned 42 cents per share which is up from 12 cents earned in the same quarter a year ago.

Comparable sales on an owned basis were up 3.9 percent in the quarter and up 4.2 percent on an owned plus licensed basis, the company said. Net income for the quarter rose from $78 million a year ago (1.5 percent of sales) to $139 million (or 2.5 percent of sales) in the reported quarter.

Why It's Important

"We exceeded our expectations and saw strong performance across all three brands—Macy's, Bloomingdale's, and Bluemercury—as well as across all geographic regions and families of business," Macy's CEO Jeff Gennette said in the press release. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin."

What's Next

Macy's lifted its fiscal 2018 EPS outlook from a range of $3.55-$3.75 to a new range of $3.75-$3.95. The company also expects comparable sales to be up between 1 and 2 percent and for total revenue to fall no more than 0.5 percent and to be higher by up to 1 percent.

Macy's said it reached an agreement to keep its brand on Alibaba's BABA TMall platform and social media channels in China. The company also reached a mutual agreement to end its joint venture with Fung Retailing Limited.

Related Links:

Morgan Stanley Turns 'Incrementally Cautious' On Macy's After 60% Gain

Gina Sanchez: Buy Exxon Mobil, Avoid Macy's