Macy’s ‘First 50’ namesake stores continued sales progress in the fourth quarter as its luxury brands, Bloomingdale’s and Bluemercury, made significant comp gains.
Net income was $342 million, or $1.21 million per diluted share, versus a loss of $128 million, or 47 cents per diluted share, in the year-previous quarter, the company reported. Adjusted for one-time charges, net earnings were $507 million, or $1.80 per diluted share, versus $628 million, or $2.24 per diluted share, in the year-before quarter.
A Zacks Investment Research analyst consensus estimate looked for earnings per adjusted diluted share of $1.55 and revenue of $7.78 billion.
Macy’s comparable sales slipped 1.1% on an owned basis but were up 0.2% on an owned-plus-licensed-plus-marketplace basis.
Comps at Macy’s revamped First 50 locations increased 1.2% on an owned-plus-licensed basis. Bloomingdale’s comps gained 4.8% and 6.5% on an owned-plus-licensed-plus-marketplace basis. Bluemercury comps advanced 6.2%.
Net sales were $7.77 billion and total revenue was $8.01 billion versus $8.12 billion and $8.38 billion, respectively, in the-earlier quarter. Operating income was $500 million versus an operating loss of $149 million in the year-prior period.
For the full year, net income was $582 million, or $2.07 per diluted share, versus $45 million, or 16 cents per share, in the year previous, the company noted. Adjusted net income was $745 million, or $2.64 per diluted share, versus $913 million, or $3.28 per diluted share, in the year before
Net sales were $22.29 billion and total revenue was $23.01 billion versus $23.09 billion and $23.87 billion, respectively, in the year earlier. Operating income was $909 million versus $301 million in the year prior.
In announcing the fourth quarter results, Tony Spring, Macy’s chairman and CEO, said, “At Macy’s, our First 50 locations delivered four quarters of increased sales, while our luxury nameplates, Bloomingdale’s and Bluemercury, achieved accelerated annual sales growth. As we enter the second year of our strategy, we plan to scale initiatives that are resonating with our customers to drive long-term profitable growth and further unlock shareholder value.”
Adrian Mitchell, Macy’s, COO and CFO, added, “Building on our momentum, we continue to elevate the customer experience, deliver operational excellence and make prudent capital investments. We remain committed to generating healthy free cash flow and returning capital to shareholders through share buybacks and predictable quarterly dividends.”
