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%.