Why Macy's (M) Shares Are Trading Higher Today - Macy's (NYSE:M)

Macy's Inc (NYSE: M) reported a fourth-quarter FY22 sales decline of 4.6% year-on-year to $8.26 billion, beating the consensus of $8.25 billion.
Comparable sales decreased 3.3% Y/Y on an owned basis and down 2.7% Y/Y on an owned plus licensed basis.
The operating margin was 8.2% versus 11.7% last year. Operating income for the quarter declined 33.4% to $676 million.
The gross margin was 34.1%, down 240 basis points Y/Y.
Adjusted EBITDA was $910 million versus $1.247 billion last year.
Adjusted EPS of $1.88 beat the consensus of $1.57.
Macy's held $862 million in cash and equivalents.
Inventory was down 4% Y/Y and 18% versus 2019, reflecting disciplined controls.
Chair and CEO Jeff Gennette said, "In the fourth quarter, we benefited from our disciplined inventory approach and compelling gift-giving strategy, which allowed us to provide fresh fashion and style at great values for all our customers. We were competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales."
Outlook: Macy's expects FY23 sales of $23.7 billion - $24.2 billion, below the consensus of $24.49 billion.
It expects adjusted EPS of $3.67 - $4.11, below the consensus of $4.20.
Price Action: M shares are trading higher by 5.34% at $21.52 in premarket on the last check Thursday.

Why Macy's Shares Are Trading Higher Today