Shares of Macy’s (NYSE: M) soared over 11% in pre-market trading on Thursday after the major retailer reported a beat on the top and bottom lines. The company reported Q4 adjusted earnings of $1.88 per diluted share, a decline of 23.3% year-over-year but still beat analysts’ consensus estimate of $1.58 per share.
Net Sales decreased by 4.6% year-over-year to $8.3 billion and surpassed analysts’ expectations of $8.2 billion. Comparable sales declined by 3.3% year-over-year on an owned basis and were down 2.7% year-over-year on an owned-plus-licensed basis.
Looking forward, management now expects a “heightened level of uncertainty within the macroeconomic environment will continue in 2023.” In FY23, Macy’s expects revenue and adjusted earnings per diluted share to be in the ranges of $23.7 billion to $24.2 billion and $3.67 to $4.11, respectively. For reference, analysts were expecting $24.4 billion in revenue and an adjusted EPS of $3.84.
Overall, Wall Street analysts are sidelined about Macy’s stock with a Hold consensus rating based on two Buys, six Holds, and one Sell.
