Macy’s Inc. (M) shares hit a new 52-week high of $33.30 on Wednesday morning after reporting first-quarter results that easily beat consensus forecast. The company also lifted its profit outlook for the full year.
Cincinnati, Ohio-based department store chain posted net income of $139 million, or 45 cents a share for the three-month period ended May 5, well above $78 million, or 26 cents a share in the same period last year. On an adjusted basis, earnings were 48 cents a share, beating analysts’ average estimate of 37 cents per share.
Revenue for the quarter came in at $5.54 billion, up 3.6 percent from the same period last year, and above consensus forecast of $5.36 billion.
Looking forward, Macy’s now expects adjusted earnings in a range of $3.75 a share to $3.95 a share for the full year, up from its previous forecast in between $3.55 a share to $3.75 a share.
Macy’s shares jumped more than 10 percent on Wednesday following better-than-expected quarterly results.
The company said strong performance across its segments drove same-store sales and earnings well above consensus forecast.
In the recent years, Macy’s has faced difficulties in adjusting to a market where people have started preferring online shopping. The company has shut over 100 stores since 2015 and slashed thousands of jobs amid decline in mall traffic.
The company said that its same-store sales for the first quarter rose 4.2 percent. Analysts on average were looking for a rise of 1.4 percent. The surge was helped by strong performance from Bloomingdale’s, Bluemercury, beside its own stores. The increase marks the second consecutive quarter of same-store sales growth.
Macy’s Chief Executive Officer, Jeff Gennette said the company has surpassed its forecast and saw strong performance across all the brands, as well as in all geographic regions.