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Macy's Q4 Results Top Estimates; Sees FY Results In Line With View

macys feb05 23feb21 lt

Department store chain Macy's Inc. (M) Tuesday reported a profit for the fourth quarter that dropped 52.9 percent from last year. Quarterly net sales declined 18.7 percent. Comparable sales down 17.0 percent on an owned basis and down 17.1 percent on an owned plus licensed basis, reflecting the continued challenges posed by the COVID-19 pandemic.

Both adjusted earnings per share and quarterly net sales topped analysts' expectations.

Macy's anticipates 2021 as a recovery and rebuilding year as the company sets a foundation for growth.

Looking ahead for fiscal year 2021, the company adjusted earnings per share to be in the range of $0.40 - $0.90 and net sales of $19.75 billion - $20.75 billion. Wall Street currently is looking for fiscal year 2021 earnings of $0.76 per share on annual revenues of $20.13 billion.

The company anticipates annual digital sales to reach $10 billion within the next three years, and that digital will become an even more profitable contributor to its business.

The company reported that its fourth-quarter net income dropped 52.9 percent to $160 million from last year's $340 million, with earnings per share declining to $0.50 from $1.09 in the previous year.

Adjusted net income for the fourth-quarter was $253 million or $0.80 per share compared to $661 million or $2.12 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Net sales for the fourth-quarter declined 18.7 percent to $6.78 billion from $8.34 billion last year. Analysts expected revenues of $6.50 billion for the fourth-quarter.

In Tuesday pre-market trade, M was trading at $15.74 up $0.46 or 3.01 percent.

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