Macy’s Inc. stock soared 10% Thursday, after the department store chain beat earnings estimates for the fourth quarter and offered upbeat guidance for fiscal 2023. Chief Executive Jeff Gennette said the company “elevated its approach to inventory management,” after high levels of inventory derailed performance a year ago.
“As a modern department store operating from off price to luxury, we have a full view of (the consumer), aided by high penetration of loyalty members and (a) robust credit card portfolio,” Gennette told analysts on the company’s earnings call, according to a FactSet transcript. “On the surface, the consumer’s in better shape than in 2019. Jobs and wages are strong and savings levels are elevated relative to historical levels. But prices for services and goods were higher. Inflation has surpassed wage growth and revolving credit is rising.” The company
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posted net income of $508 million, or $1.83 a share, for the quarter to Jan. 28, down from $742 million, or $2.44 a share, in the year -earlier period. Adjusted per-share earnings came to $1.88, ahead of the $1.58 FactSet consensus. Some 17 cents of the adjusted EPS beat was due to the favorable resolution of a state income tax litigation. Sales fell to $8.264 billion from $8.665 billion, but were also ahe …