Macy's offers cautious holiday outlook as company manages turnaround story after best sales growth in 3 years

Macy's (M) posted better-than-expected 3rd 4th results connected Wednesday portion offering a cautious outlook for the vacation quarter.

The retailer said nett income for the 4th fourth are expected to autumn 3%-5% from a twelvemonth agone to a scope of $7.35 billion-$7.5 billion.

In the 3rd quarter, Macy's posted gross of $4.7 billion, successful enactment with past twelvemonth and somewhat much than Wall Street's estimates of $4.6 billion, per Bloomberg statement data. That's alongside adjusted net per stock of $0.04, amended than the $0.14 nonaccomplishment analysts were expecting.

Same-store income grew 2.5%, up of the 0.6% summation that was expected. This marked the fastest gait of same-store income maturation successful 13 quarters.

Macy's banal was down astir 0.4% connected Wednesday pursuing the results.

"We don't marque commitments lightly, and truthful that doesn't acceptable a ceiling connected however assertive and however ambitious our squad is," Macy's CEO Tony Spring said Wednesday astir the company's guidance for the 4th quarter.

"But the past happening I privation to bash is, aft 3 consecutive quarters of beating the Street, and 2 consecutive quarters of comp growth, get into a concern wherever we get up of our skis," Spring added. "[That would] truly [dilute] the credibility that we're gathering with the investment."

Macy's revealed its Bold New Chapter Strategy successful aboriginal 2024.

Read more: Live sum of firm earnings

The institution besides raised its yearly outlook connected Wednesday, saying it expects full-year same-store income to autumn successful a scope betwixt unchanged and up 1%. Macy's antecedently said it expected income to autumn up to 1.5% for the year.

Adjusted net per stock are besides expected to travel successful betwixt $2.00 and $2.20, up from a scope of $1.70-$2.05 previously.

In the 3rd quarter, its cosmetics brand, Blue Mercury, posted a 1.1% income increase, portion Bloomingdale's saw an 8.8% summation successful same-store sales, besides marking the highest maturation successful 13 quarters.

Spring said the luxury concern is "hitting connected each strides close now" with its assortment, marketing, store portfolio, and "very steadfast integer business."

"The K-shaped system helps," Spring said. "Bloomingdale's is successful the zeitgeist of the mode the modern affluent shopper wants to shop."

At the stores the institution plans to support unfastened crossed its portfolio, same-store income accrued 3.4% successful the 3rd quarter. Macy's plans to adjacent 150 stores implicit a three-year period; it closed 64 past year.

Brooke DiPalma is simply a newsman for Yahoo Finance. Follow her connected X astatine @BrookeDiPalma oregon email her astatine [email protected].

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