Понедельник, 22 Октября, 2018

Macy's sees robust mobile, online sales as profits soar

Macy’s sales surge thanks to tourist shoppers Modal Trigger Getty Images
Nellie Chapman | 16 Мая, 2018, 23:10

At the moment (10:41), M stock is trading at $31.80 per share after a gain of $1.87 per share or 6.25% thus far today. Net income climbed to $139 million, or 45 cents per share, in the period ended May 5, from $78 million, or 26 cents a share, a year ago. "The winning formula for Macy's, Inc.is a healthy brick & mortar business, robust e-commerce and a great mobile experience".

The retailer once again posted double-digit sales growth from digital sales, thanks in part to improvements the company has made to its website and app. Zacks Investment Research raised shares of Macy's from a hold rating to a buy rating and set a $28.00 target price on the stock in a research note on Wednesday, January 10th.

"Our first quarter performance reflects solid execution of our North Star Strategy, including merchandising and marketing activities".

Macy's has started getting in benefits of healthy consumer spending after a strong holiday season. The revenue of the company rose to $5.5 billion while the expected revenue was $5.4 billion. Much of the boost in comparable sales was attributable to a change in timing of a big Friends and Family sale, which took place in the first quarter this year after having landed in the second quarter last year.

Under Jeff Gennette, Macy's CEO of 14 months, the company emphasized what he has called Macy's "fashion authority", promoting the use of personal stylists in stores and focusing more on products in promotional materials and less on what percentage off the sales prices is being offered.

That is still slightly better than analysts' expectations of a 1.4% increase, but it suggests that Macy's may struggle to maintain its momentum in the sales-free second-quarter. Stripping out impairment charges and other costs, earnings were 48 cents per share.

The company also saw a boost from worldwide tourism but said it would be ending its joint venture with Fung Retailing Limited in China. Net operating cash flow jumped 36% to $322 million.

Also, EVP Felicia Williams sold 10,000 shares of Macy's stock in a transaction that occurred on Friday, March 2nd.

Bloomingdale's and Blue Mercury, the company's higher-end subsidiaries, are performing well, as is the off-price concept launched in a number of Macy's stores, called Backstage. Instead, Macy's will remain on Alibaba's (NYSE: BABA) TMall platform and focus efforts there. The Macy's e-commerce team in San Francisco will manage the ongoing China business with operational support from Fung Omni in Shanghai.

The company is raising its profit guidance for fiscal 2018.

When it comes to revenue for 2018, Macy's Inc says it is expecting it to range from a 1% decline to a 0.5% increase from 2017 revenue. Comparable sales on an owned plus licensed basis are predictable to increase between 1 and 2 percent.