Despite a slight dip in the bottom line, Macy’s posted another quarter of comparable-sales growth and said it had a “solid start” to the year.
Net income for the first quarter ended May 4, slipped to $136 million, from $139 million in the year-ago quarter. However, the company saw comparable-sales expand 0.7 percent on an owned plus licensed basis, marking the sixth-consecutive quarter of comp gains.
The $25 billion department store chain also reported 44 cents in earnings per share, beating Wall Street consensus estimates of 34 cents.
Total sales declined slightly to $5.5 billion from $5.54 billion a year earlier. The revenue result fell just shy of Wall Street expectations.
“Macy’s Inc. is off to a solid start this year, delivering our sixth-consecutive quarter of comparable-sales growth and making progress against the North Star Strategy,” said Jeff Gennette, Macy’s chairman and chief executive officer.
“Our brick and mortar sales trend improved sequentially in the first quarter, supported by the Growth 50 stores [which Macy’s puts extra resources into to capture greater market share] and Backstage,” the company’s offprice format.
“We had another quarter of double-digit growth in our digital business, and mobile continues to be our fastest-growing channel,” said Gennette. “We are pleased with the progress we are making on our strategic initiatives as they continue to drive top-line growth, keeping us on track to reach our 2019 goals. We believe these initiatives, coupled with productivity improvements, position our company well for long-term profit growth.”