Macy's reports positive Q4, upbeat outlook

For the fourth quarter, net income at Macy’s Inc. fell to 160 million dollars or 50 cents per share from 340 million dollars or 1.09 dollars per share. The company’s adjusted diluted earnings per share were 80 cents compared to analysts’ expectation of 12 cents per share. Sales doe the quarter dropped to 6.78 billion dollars from 8.34 billion dollars a year ago, while the company’s comparable sales were down 17 percent on an owned basis and down 17.1 percent on an owned plus licensed basis. The company said, digital sales grew 21 percent over fourth quarter 2019, with digital penetration at 44 percent of net sales.

“Macy’s fourth quarter results exceeded our expectations across all three of our brands, as we showed continued quarter-to-quarter sales performance improvements and returned to profitability,” said Jeff Gennette, Macy’s Chairman and CEO, adding, “Our investments in digital innovation continued to pay off in the quarter, with digital sales up 21 percent from 2019. We anticipate annual digital sales to reach 10 billion dollars within the next three years, and that digital will become an even more profitable contributor to our business.”

Macy’s anticipates 2021 as a recovery and rebuilding year as the company sets a foundation for growth. The company’s annual guidance contemplates continued pandemic-related challenges in the spring season with momentum building in the back half of 2021. Macy’s expects net sales to range between 19.75 billion dollars and 20.75 billion dollars and adjusted diluted earnings per share to be between 40 to 90 cents for the fiscal year 2021.

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