Macy's Reports Q3 Results, Raises Full-Year Sales Outlook And Real-Estate Optionality

Macy's Inc M reported on Thursday its third-quarter results along with several business updates.

Macy's said it earned $0.17 per share in the third quarter on revenue of $5.63 billion. Wall Street analysts were expecting the company to earn $0.41 per share on revenue of $5.65 billion.

Macy's noted its results include asset impairment and other charges related to store closings of $111 million.

Sales during the quarter fell 4.2 percent on a year-over-year basis; comparable sales on an owned plus licensed basis were down by 2.7 percent. On an owned basis, comparable store sales fell by 3.3 percent. The company attributed the decline toward the closing of 41 stores at the end of fiscal 2015.

Looking forward to the full fiscal year, Macy's expects comparable sales on an owned plus licensed basis to fall by 2.5 percent to 3.0 percent which marks an improvement from management's prior guidance of a decline of 3.0 percent to 4.0 percent.

Real-Estate Optionality

In conjunction with Macy's third-quarter report, the company announced a strategic alliance with Brookfield Asset Management to explore value creation opportunities within its real-estate holdings.

As part of the alliance, Brookfield was given the exclusive rights to create a "pre-development plan" for initially 50 of Macy's real-estate assets.

Brookfield will explore options to maximize value for Macy's shareholders through additional developments on a portion of an asset owned by Macy's or a complete redevelopment of an existing store.

In Thursday's pre-market, Macy's was up 3.96 percent at $39.90.