Macy’s Quarterly Results: Shares of the US-based retail company Macy’s (NYSE:M) have jumped after the company released its first-quarter earnings report, for 2018.
Macy’s saw a 3.6% increase in net sales, rising from $5.35 billion USD during the first quarter of 2017 to $5.54 billion. Operating incomes also saw an increase as it jumped from $219 million during the previous year’s first quarter to $238 million.
Although the company will be ending its partnership with the China-based Fung Retailing Limited, Macy’s will remain in China by running on Alibaba’s (NYSE:BABA) TMall, an e-commerce platform.
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Chairman and CEO of Macy’s, Jeff Gennette, has said that the company “exceeded [its] 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. “
Forecasting for fiscal 2018 financial results has also changed, and Macy’s is now expecting comparable sales to increase between one to two percent. Total sales are also predicted to rise up to 0.5% in 2018.
Late last week, Morgan Stanley had downgraded Macy’s shares as a result of the company’s declining sales and pressure from online retailers.
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According to Gennette, the quarter “saw continued healthy consumer spending and significant improvements in international tourism” which gave the company “confidence to raise both our sales and earnings guidance for the fiscal year.”
For the second quarter, Gennete has said that the company will focus on building initiatives to help improve the performance of the company for the second half of the year.
After Macy’s earnings report was released, share value has risen over 10% and has reached a little over $33.00 as of 12:40 pm EDT on Wednesday. Macy’s has already reached a high of $33.30 and a low of $31.41.
Comparatively the company closed at a share value of $29.93 on Tuesday, with a high of $30.20 and a low of $28.94.
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