For the most part, the retail sector has struggled for the majority of 2017. And yet, when Macy’s Inc. (NYSE:$M) reported its third-quarter earnings Thursday morning, the market seemed to really like what the Cincinnati-based company had to say.
Macy’s stock ended the trading day up almost 11%. Not too shabby considering its competitors, like JC Penney Company (NYSE:$JCP), have experienced a few setbacks as of late.
However, one can’t get too excited. It’s very likely that once the dust settles, investors will come to the realization that Macy’s isn’t safe from the monster – Amazon.com (NASDAQ:$AMZN) – that is targeting the retail industry.
Missed the report? Here’s what you need to know:
For Macy’s third quarter ending in October, the department store company brought in an operating profit of 23 cents per share on sales of $5.28 billion. As a point of reference, analysts had forecasted the retailer would earn 19 cents per share on revenue of $5.31 billion.
This is what CEO Jeff Gennette had to say about the Q3 results:
“Overall, we’re pleased with the results for the third quarter and we remain on track to meet our full-year sales and earnings guidance for 2017. Importantly, we also saw better gross margin performance primarily due to our tightly controlled inventory position. A highlight of the third quarter was the launch of the new Star Rewards loyalty program — our best customers are responding positively. We also saw continued double-digit growth in digital and are encouraged by the potential of Backstage in Macy’s stores.”
Featured Image: twitter
