Macy’s Inc (NYSE: M) reported market-beating results for its fiscal second quarter on Thursday. Shares of the company jumped more than 15% as it raised its guidance for the full year.
Financial performance
Macy’s said its net income in the second quarter printed at $345 million ($1.08 per share) versus the year-ago figure of $431 million ($1.39 per share). On an adjusted basis, the department store retailer earned $1.29 a share.
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The American holding company generated $5.647 billion of sales – an increase from $3.559 billion in the same quarter last year. According to FactSet, experts had forecast 23 cents of adjusted EPS on $5.011 billion in sales.
Macy’s board authorised $500 million of share repurchase this morning and reinstated dividend at 15 cents a share for the quarter.
Guidance for the full year
For the full year, the Ohio-based company now forecasts up to $23.95 billion in sales and $3.41 to $3.75 of adjusted EPS. In comparison, analysts are calling for $2.32 of adjusted per-share earnings on $22.09 billion of sales.
In related news, peer Kohl’s also reported its financial results for the second quarter this morning.
Terry Lundgren’s comments on CNBC’s “Squawk Boxâ€
On CNBC’s “Squawk Boxâ€, Macy’s former CEO Terry Lundgren said that resumed share buyback and quarterly dividend is an indication that “all arrows point green for Macy’s over the long termâ€.
“Macy’s is positioned very well. They’ve done a great job since the start of the pandemic. Macy’s has not slowed down, it made proper investments, focused on getting lean, and even got rid of stores that were cash-flow positive but without a big future in terms of top-line growth. They’ve made a lot of these hard decisions,†he added.
Lundgren said he was expecting the retail sector to shine this quarter, but names, including Target Corp and Macy’s, exceeded his expectations.
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