Citing a strong digital performance and improvement in its physical stores, Macy’s reported net income in its third quarter more than doubled to $62 million, up from $27 million in the year-ago period.
Comparable sales rose 3.3 percent for the three months ended Nov. 3 while total sales rose to $5.4 billion from $5.28 billion.
Based on the performance, which beat expectations, and momentum going into the fourth quarter, the $25 billion Macy’s raised its annual sales and earnings guidance. Comparable sales for 2018 are seen increasing 2.3 percent to 2.5 percent from previous guidance of 2.1 percent to 2.5 percent. Net sales are now seen rising to 0.3 percent to 0.7 percent for 2018, from earlier expectations of being flat to 0.7 percent ahead, while diluted earnings per share are now seen at $4.10 to $4.30, versus the previous guidance of $3.95 to $4.15.
Jeff Gennette, chairman and chief executive officer, noted it was Macy’s fourth consecutive quarter of comparable sales growth. “Macy’s, Bloomingdale’s and Bluemercury all performed well,” he said.
“Our strategic initiatives are gaining momentum and delivering results,” Gennette added. “Another double-digit quarter from our digital business and a strong stores performance combined to help us exceed expectations. We continue to see an improved trend in brick-and-mortar across the fleet with particularly strong results from our Growth50 stores,” where Macy’s is investing more heavily with selling floor and technology innovations.