Retail giant Macy’s posted first quarter earnings that exceeded expectations thanks to double-digit growth in digital sales as well as robust sales at its physical stores for all its main brands.
The Cincinnati-based retailer posted earnings of 42 cents a share on revenue of $5.54 billion, up 3.6 percent. Analysts polled by Zacks Investment Research expected earnings of 36 cents per share.
Sales at the retailer’s company-owned stores open more than 12 months rose 3.9% while sales at owned and licensed stores rose 4.2%.
Macy’s updated its guidance for fiscal 2018. The retailer now expects adjusted profit of $3.75 to $3.95 per share and forecasts sales to range from a 1 percent decline to a .5 percent increase.
Shares of the company rose by almost 7 percent after the results were announced.
Jeff Gennette, Macy’s, Inc. chairman and chief executive officer, said in a press release:
“Macy’s, Inc.’s results for the first quarter of 2018 reflect continuing momentum in the business. We exceeded our expectations and saw strong performance across all three brands—Macy’s, Bloomingdale’s, and Bluemercury—as well as across all geographic regions and families of business. We are maintaining a healthy inventory position, which helped us deliver improved gross margin.
“The winning formula for Macy’s, Inc. is a healthy brick & mortar business, robust e-commerce and a great mobile experience. While we have more work to do, the continuing improvement in our stores is encouraging and we once again achieved double-digit growth in the digital business. Our best customer is responding well to the improvements we’ve made to her experience in our stores, on .com and through the Macy’s app.”