Macy’s impresses with its quarterly results

By: Miguel A. Rodriguez

17:31, 23 February 2021

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The company posted its first successful quarter in a year

One of the largest department store chain in the US posted Q4 2020 results that topped estimates.

Macy’s reported an adjusted EPS of 80 cents, on revenues of 6.78 billion. Both figures came in higher than the 12 cents earnings per share and $6.5 billion expected revenues. It is the first quarter in a year when Macy’s reports profit.

The store’s net income came in at $160 million, lower than the $340million reported a year ago.

On the other hand, e-commerce sales gained 21% in the latest quarter, accounting for 44% of the overall net sales. It expects its online sales to top $10 billion in the next three years, as it believes it will still prefer the internet even after the pandemic is over.

For the future, Macy’s intends to keep its word and close 125 locations by 2023, with more than 40 stores to be shut down by mid-2021. For fiscal 2021, the store expects its sales to reach a high of $20.75 billion and an adjusted EPS of 90 cents. Analysts are looking for an adjusted EPS of 77 cents on revenues of $20.13 billion.

After the news hit the wires, Macy’s stock price added 2.2%.

Source: cnbc.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.