Macy’s (ticker: M) has announced its third-quarter earnings, surpassing Wall Street’s expectations. The retailer reported adjusted earnings of 21 cents per share, beating forecasts of no earnings, while sales stood at $4.86 billion, exceeding expectations of $4.78 billion.
In comparison to the same period last year, Macy’s experienced a decline in earnings from 52 cents per share to 21 cents per share. Despite this decrease, Chief Executive Tony Spring expressed satisfaction with the company’s performance during the third quarter, highlighting better-than-expected results and a healthy inventory position leading into the upcoming holiday season. Notably, Macy’s merchandise inventory saw a 6% decrease from the previous year.
Given the uncertain economic environment and the resulting impact on consumers, Macy’s also adjusted its outlook for fiscal 2023. The updated guidance reflects the potential risks associated with these circumstances. Earnings for fiscal 2023 are now expected to range between $2.88 and $3.13 per share, compared to the prior estimate of $2.70 to $3.20 per share. Similarly, sales are projected to fall between $22.9 billion and $23.2 billion, as opposed to the previous estimate of $22.8 billion to $23.2 billion.
Following this positive outcome, Macy’s stock experienced a surge of 12% in premarket trading on Thursday, reaching $14.17 per share. It is important to note that Macy’s shares have suffered a 29% decline throughout this year.