NEW YORK – Macy’s reports strong sales and earnings in the fourth quarter that exceeded Wall Street estimates, even as the department store faced many challenges ranging from supply chain problems to labor shortages and inflation.
The company reported earnings of $ 742 million, or $ 2.44 per share, for the three-month period ended Jan. 29. That’s up from $ 160 million, or 50 cents a share, a year ago. Adjusted earnings were $ 2.45 per share.
Revenue was $ 8.66 billion, up nearly 30% from $ 6.78 billion last quarter.
Analysts expected earnings of $ 2.01 per share on sales of $ 8.46 billion.
Sales in stores that opened at least a year ago, which is a critical measure for the health of retailers, rose 28.3%. This excludes licensed businesses such as cosmetics. Online sales grew 12% for the quarter.
Like other retailers, Macy’s is facing rising costs on everything from labor to shipping as supply chain backups hit companies around the world during the holidays. Last holiday quarter also offered an additional challenge: a contagious new option, omicron, which has made some customers nervous before shopping. It has also forced many workers to take sick leave, leading to rising costs for companies forced to hire more workers than planned to fill the gap.
In November, Macy’s said it would pay a minimum of $ 15 an hour for new and existing workers by May.
Meanwhile, Macy’s said Tuesday it would not separate its e-commerce department from its stores after a lengthy comprehensive review by the board with the help of independent financial, legal and outside consultants and the company’s management team.
It said the key decisions for the board were the high costs of the branch and the running costs of operating individual businesses, as well as the high risk to the company’s business and customers. As a result of the review, the company is accelerating initiatives that expand areas such as the Internet, private labels and increasing the small format of the market outside of malls in Macy’s and Bloomingdale’s stores. Macy’s decision was made after he faced pressure from shareholder-shareholder Jana Partners to separate the unit to improve valuations, similar to what Saks Fifth Avenue did last year.
Macy’s share rose more than 7% on pre-market auction news.
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