Shares of Macy’s Inc (NYSE: M) are up just under 15% in premarket trading after the department store retailer blew past Wall Street estimates in its fiscal third quarter.
McGhee’s remarks on CNBC’s “Worldwide Exchange”
On CNBC’s “Worldwide Exchange”, Pivotal Advisors’ Tiffany McGhee lauded Macy’s turnaround plan that pulled the stock from the pits of the pandemic to about 200% up year-to-date.
They’re focused on increasing margins, managing inventory, increasing online sales, and launching a couple of billion-dollar private labels under their umbrella. If they’re able to execute on all of these strategies, I think the stock goes higher.
Macy’s stock has already topped the price targets of several analysts this year. Including the price action this morning, it is now down only about 5.0% from the Street high PT.
Key takeaways from Macy’s Q3 earnings report
Macy’s reported $239 million in net income (76 cents per share) versus the year-ago figure of $91 million in loss (29 cents per share). On an adjusted basis, it earned $1.23. The Ohio-based company generated $5.44 billion in sales, representing an annualised increase of 36.5%.
According to FactSet, experts had forecast 31 cents of adjusted EPS on $5.20 billion in sales. Earlier this week, the U.S. Commerce Department said retail sales climbed faster than expected in October despite the worst inflation in over three decades.
Same-store sales came in 37.2% up in the recent quarter versus 32.3% expected. Both of its notable brands, Bloomingdale’s and Bluemercury, noted a similar growth in comparable sales, as per the earnings press release.
For the full financial year, Macy’s now forecasts up to $4.76 of adjusted EPS on $24.12 billion to $24.28 billion in sales. In comparison, analysts are calling for $3.65 in adjusted per-share earnings on $22.11 billion in sales.
The post Macy’s blows past estimates in Q3: ‘I think the stock goes higher’ appeared first on Invezz.