The stock had a trading volume of 393,408 shares, compared to its average volume of 10,137,291.
Investors sent the stock soaring in early trading, and they are right to be cheered by Macy's progress. Insiders sold 107,392 shares of company stock valued at $3,173,164 over the last quarter. Excluding asset sales gains, earnings were 42 cents per share.
Macy's good quarter suggests that many consumers are still willing to actually go to stores to shop instead of just buying clothes on their phones and tablets. The firm's quarterly revenue was up 1.8% compared to the same quarter past year.
This was the second quarter of same-store sales growth in a row. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin", said Jeff Gennette, Macy's, Inc. chairman and chief executive officer. "The winning formula for [Macy's] is a healthy brick-and-mortar business, robust e-commerce and a great mobile experience". She thinks Macy's needs to close more stores than it already has and may have made the most it can from real estate sales.
"Our first quarter performance reflects solid execution of our North Star Strategy, including merchandising and marketing activities". Macy's also said business got a lift from an increase in spending from global tourists, the first time since 2014. Ltd lifted its holdings in shares of Macy's by 78.4% in the first quarter.
Same-store sales on an owned plus licensed basis were up 4.2 percent, almost 3 percentage points higher than the Street's forecast.
The U.S. department store chain also issued comparable sales growth guidance that topped estimates, boosting its shares 10 percent to $32.92 by midday.
The real test of what Macy's is up to could come next quarter.
Looking ahead, Macy's now projects its fiscal 2018 adjusted profit to fall between $3.75 and $3.95 per share, up from a range of US$3.55 to US$3.75. Sales are expected to range from a 1% decline to a 0.5% increase from $24.8 billion previous year compared to the prior call for a decline of 0.5% to 2%. Its online sales increased by a double-digit percentage during the first quarter alone. Yet it was also driven by Macy's decision to shift its "Friends & Family" sale from the second-quarter to the first. Net operating cash flow jumped 36% to $322 million. Morgan Stanley raised their target price on shares of Macy's from $23.00 to $27.00 and gave the company an "equal weight" rating in a report on Wednesday, February 28th. The Macy's e-commerce team in San Francisco will manage the ongoing China business with operational support from Fung Omni in Shanghai.
Macy's is off to a better start to 2018 than anyone saw coming, including Macy's itself. In recent weeks, the company acquired the retail concept Story, an acquisition that brought with it a much-talked-about innovator in founder Rachel Shechtman, and also announced it has broadened its loyalty program beyond credit card holders and expanded its off-price Backstage business.
As the recently-floundering retailer keeps raising its outlook, though, it also risks creating expectations it can't meet.
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