Macy’s (M) – Get Macy’s Inc Report posted stronger-than-expected fourth quarter earnings Tuesday, while boosting its dividend and share buyback plans, as the department store bellwether continues its spectacular turnaround under CEO Jeff Gennette.
Macy’s said adjusted earnings for the three months ending in January, the group’s fiscal fourth quarter, came in at $2.45 per share, up more than 200% from the same period last year and well ahead of the Street consensus forecast of $2.00 per share. Group net sales, Macy’s said rose 27.8% to $8.67 billion, again topping analysts’ estimates of a $8.47 billion tally.
Same-store sales were up 28.3%, Macy’s said, and up 6.1% from the pre-pandemic comp period of January 2019.
Looking into the 2022 financial year, Macy’s said it sees net sales in the region of $24.4 billion to $24.7 billion with adjusted earnings in the range of $4.13 to $4.52 per share. Macy’s also boosted its dividend by 5%, to $15.75 per share, and added $2 billion to its share buyback plans.
“Our results in the fourth quarter delivered a strong end to a solid year. I am proud that Macy’s outperformed expectations on both the top and bottom lines every quarter in 2021, despite COVID-19 related disruptions, supply chain issues, labor shortages and elevated inflation,” Gennette said. “Our business has momentum and is serving more customers at more touchpoints in their shopping journey.”
“Our team began the large-scale work of transforming Macy’s two years ago when we launched the Polaris strategy, and today we believe the evidence is clear – our business is stronger, more agile, and financially healthier,” he added. “We are more digitally led and customer centric and believe we are better positioned for long-term sustainable and profitable growth.
Macy’s shares were marked 6.1% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $27.25, a move that would extend the stock’s one-year gain to around 77% and value the New York based retailer at more than $8 billion.