Macy's: Fiscal 1Q Earnings Snapshot

Macy's isn't the best day trading stock but with a move like this in the premarket we should see plenty of opportunity on this name today.

In other news, Director Deirdre P. Connelly sold 9,092 shares of Macy's stock in a transaction on Thursday, March 8th. The shares were sold at an average price of $30.30, for a total value of $606,000.00. Macy's net income was $139 million in the first quarter, up from $78 million past year. The chain's prior outlook was for an adjusted profit between $3.55 and $3.75 per share and revenue that would be down 0.5 percent to 2 percent. Macy's's quarterly revenue was up 1.8% compared to the same quarter past year.

Macy's this week had a firm answer to some of the gloom on Wall Street around the company and the department store sector as a whole.

Chairman and CEO Jeff Gennette said the company saw strength across its Bloomingdale's, Bluemercury and Macy's brands. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin", he said.

"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.

Gannette also stressed the importance of the company's turnaround effort called the "North Star" strategy and its revamped merchandising and marketing operations for the better-than-expected quarter.

On the call, Gennette attributed some of the gains to a 10 percent uptick in worldwide tourism spending, along with what he called "a very healthy inventory position", indicating that the retailer has made better merchandising decisions and relied less on discounting to sell through product. Taken together, these positive factors give us confidence to raise both our sales and earnings guidance for the fiscal year. However, the company actually generated revenue in the amount of $5.5 billion, handily beating expectations. Comparable sales rose 3.9% in Q1, Macy's said.

During the quarter, Macy's also made $24 million in gains on real estate sales and spent $19 million winding down Macy's China. Apart From this, the company estimates that comparable sales were up 1.7 percent on an owned plus licensed basis. American International Group Inc. increased its stake in shares of Macy's by 98.9% in the 4th quarter.

Shares of Macy's stock opened at $29.63 on Friday. The company anticipates recognizing additional charges of about $10 million related to the wind-down over the course of fiscal 2018. Ltd lifted its holdings in shares of Macy's by 78.4% in the first quarter.

Neil Saunders, managing director of GlobalData Retail, pointed out in comments emailed to Retail Dive that Macy's in Q1 moved up its popular Friends and Family promotion (which previously came in the second quarter), and was also posting comps that compared favorably to an abysmal sales period in Q1 2017. 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. 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.

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