Latest News

: Macy’s reports earnings beat, hikes dividend, approves $2 billion share repurchase program


Macy’s Inc. shares rose 8% in Tuesday premarket before pulling back 4% during trading hours after the department store retailer reported fourth-quarter earnings that beat expectations and announced a dividend hike.

Net income totaled $742 million, or $2.44 per share, up from $160 million, or 50 cents per share, last year. Adjusted EPS of $2.45 exceeded the FactSet consensus for $2.01. Sales of $8.665 billion were up from $6.780 billion and ahead of the FactSet consensus for $8.465 billion. Digital sales were up 12% and accounted for 39% of net sales.

Comparable sales on an owned basis were up 28.3%, and increased 27.7% on an owned-plus-licensed basis. The FactSet consensus was for a comparable sales increase of 25.1%.

Read: Rihanna’s Fenty Beauty heading to Ulta on March 6

Bloomingdale’s comparable sales were up 37.8% on an owned basis and up 37.6% on an owned-plus-licensed basis. And Bluemercury comparable sales rose 30.9% on both an owned and an owned-plus-licensed basis.


announced a new $2 billion share repurchase program after completing a previous $500 million program.

The company also raised its dividend by 5% to 15.75 cents per quarter, payable on April 1 to shareholders of record as of close of business March 15.

Activist investors Jana Partners had called for Macy’s to separate its e-commerce business from its brick-and-mortar stores. The company has completed a business review and says it has determined that continuing as an omnichannel operation would be the better option.

See: Macy’s upgraded but Nordstrom downgraded, as department store category continues to shift

“Key to the Board’s decision-making were the high separation costs and ongoing costs from operating separated businesses, as well as high execution risk for the business and the company’s customers. As a result of the review, the company is accelerating Polaris initiatives that span digital, brand partners, private label, marketing and loyalty and the expansion of off-mall, small-format Market by Macy’s and Bloomie’s stores,” the company said in a statement.

Polaris is Macy’s turnaround strategy, which was launched two years ago.

For 2022, Macy’s is guiding for sales of $24.46 billion to $24.70 billion, and adjusted EPS of $4.13 to $4.52.

The FactSet consensus is for sales of $24.34 billion and EPS of $4.09.

Macy’s stock has run up 62% over the last year while the S&P 500 index

is up 11.8% for the period.

Futures Movers: Brent oil posts highest finish since 2014 after Russia orders troops to Ukraine

Previous article

Russia’s Ukraine incursion could complicate the Federal Reserve’s interest rate decisions

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News