Shares of Macy’s Inc. (NYSE:M) shot up after the American retailing giant crushed market expectations for both its fiscal first-quarter revenue and profit and raised its outlook for the full year.
Indeed, the retailer's shares jumped more than 6% in early trade to US$31.77 after Macy’s saw a strong quarterly sales showing from its trio of brands – Macy’s, Bloomingdale’s and Bluemercury.
For the thirteen-week period ended May 5, Macy’s earned US$139mln, or US$.045 per share, which was more than a third higher than the year-ago quarter, when it earned US$78mln or US$.026 per share.
On an adjusted basis, the retailer earned 48 cents per share, which whizzed past analysts’ expectations of 36 cents.
Jeff Gennette, Macy’s chairman and chief executive, said that Macy’s success formula is a “healthy brick & mortar business, robust e-commece and a great mobile experience”.
“The continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business,” Gennette said in a statement.
Macy’s net sales in its first quarter amounted to US$5.54bln, coming in ahead of Wall Street’s expectations of US$5.4bln.
On the corporate news front, Macy’s revealed that it has come up with a new approach to handle its business in China. It is ending its joint venture with Fung Retailing Limited and it will instead try to draw business via Alibaba’s e-commerce platform TMall, as well as social media channels.
Macy’s is one of a number of department stores which are attempting to adapt to people spending more of their money online by shutting stores with weak foot traffic and broadening their online services.
READ: Macy's plans nationwide rollout of mobile checkout, expanded use of virtual reality to buy furniture
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.
Macy’s operates 690 department stores under the names Macy’s and Bloomingdale’s and an additional 160 stores that include Bluemercury, Macy’s Backstage and Bloomingdale’s The Outlet.