Macy’s, Inc. (NYSE:M) reported q3 earnings Thursday morning, sales and earnings were weaker than analyst expectations. Although it missed, the company had raised its sales outlook. The company stated that it entered into a joint venture with Brookfield Asset Management to redevelop 50 of its stores.
The department store chain’s share value was up 3 percent during premarket trading. The company had a rally of share value to a high of $42.00 intraday. Macy’s earned 17 cent a share, on revenue of $5.626 billion. Wall Street anticipated the company to report earnings of 41 cents per share. Analysts estimated a revenue fall to $5.64 billion.
Although Macy’s fell short, forecast for full-year sales on owned and licensed items has been raised. CEO Terry Lundgren told CNBC, “We are right on track with what our own expectations were.” “Inventory is in different shape today than it was one year ago. Last year we were loaded with it. All we did was mark it down… Now our inventory’s in perfect shape because we planned for this.”
Macy’s has signed a contract to sell its men’s flagship in San Francisco’s Union Square for $250 million. The transaction is expected to close in January and estimated to gain $235 million in one year. The company also signed a contract to sell its store in Portland, Oregon for $54 million which is estimated to close in the fourth quarter.