Beating expectations, Macy’s reported that its net income for the fourth quarter of 2017 rose to $1.33 billion, versus $475 million in the year-ago period.
Fourth quarter earnings per diluted share were $4.31 compared to $1.54 per share in the fourth quarter of 2016. Fiscal 2017 earnings per diluted share were $5.04 compared to $1.99 per share in fiscal 2016.
Sales in the fourth quarter, which ended on Feb. 3, totaled nearly $8.7 billion, an increase of 1.8 percent, compared with sales of approximately $8.5 billion in the fourth quarter of 2016.
Comparable sales, including owned and leased sales were up 1.4 percent in the fourth quarter, and up 1.3 percent on an owned basis only.
Total sales in the fourth quarter of 2017 reflect a 14th week of sales, whereas comparable sales are on the same 13-week basis as fiscal 2016.
Sales in fiscal 2017 totaled over $24.8 billion, down 3.7 percent from total sales of approximately $25.8 billion in fiscal 2016. Comparable sales on an owned and leased basis declined by 1.9 percent in fiscal 2017. Total sales for fiscal 2017 reflect a 53rd week of sales, whereas comparable sales are on the same 52-week basis as fiscal 2016.
“We are committed to returning Macy’s, Inc. to comparable sales growth in 2018 and will build on the momentum we created in the fourth quarter of 2017,” said Macy’s chairman and chief executive officer jeff Gennette. “Macy’s, Inc. had a solid fourth quarter, including strong performance in January, and the full year exceeded our expectations for annual comparable sales and adjusted earnings per diluted share. We are encouraged to see a trend improvement in our brick and mortar business, and we had the 34th consecutive quarter of double-digit growth in our digital business.”
Gennette said consumer spending was strong in the fourth quarter. “We were ready with improved execution and great products across all categories. We were disciplined with our promotional cadence and maintained a good inventory position. We head into 2018 with an improved base business, healthy inventories, a focused and engaged organization and a clear path to return Macy’s to growth.”
For fiscal 2018, Macy’s expects comparable sales on both an owned and an owned plus licensed basis to be flat to up 1 percent. Total sales are expected to be down between 0.5 percent and 2 percent.
Adjusted earnings per diluted share of $3.55 to $3.75 are expected in fiscal 2018, excluding anticipated settlement charges related to the company’s defined benefit plans.