Macy’s (NYSE: M) topped fourth-quarter earnings Tuesday with sales that surpassed analysts’ estimates. Moreover, the company says that following a strategic review, it has opted to hasten its turnaround plans. The retailer’s shares rose more than 4% during morning trading amid the news.
The American department store chain reported earnings of USD2.45 per share, compared to the expected USD2.00 a share. Revenue amounted to USD8.67 Billion, higher than analysts anticipated USD8.47 Billion.
“Our results in the fourth quarter delivered a strong end to a solid year. I am proud that Macy’s, Inc. outperformed expectations on both the top and bottom lines every quarter in 2021, despite COVID-19 related disruptions, supply chain issues, labor shortages, and elevated inflation,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Our business has momentum and is serving more customers at more touchpoints in their shopping journey.”
The company has failed to consider suggestions from activist Jana Partners for it to split its e-commerce division from its stores. Macy’s has been working with consulting firm AlixPartners to analyze the best course of action for the business.
“Our team began the large-scale work of transforming Macy’s, Inc. two years ago when we launched the Polaris strategy, and today we believe the evidence is clear – our business is stronger, more agile, and financially healthier. We are more digitally-led and customer-centric and believe we are better positioned for long-term sustainable and profitable growth,” Gennette continued.
The retailer’s digital sales have shot up 12% year over year and rose 36% on a two-year basis. E-commerce amounted to 39% of total net sales.
However, Macy’s shares have fallen 2% year to date and have a current market cap of USD7.7 Billion.