Macy’s Inc. Earnings: Beats Estimates as Profit and Revenue Rise

S&P 500 (NYSE:SPY) component Macy’s Inc. (NYSE:M) reported its results for the first quarter. Macy’s, Inc. is a retailer (NYSE:XRT) that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.

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Macy’s Earnings Cheat Sheet for the First Quarter

Results: Net income for Macy’s Inc. rose to $131 million (30 cents/share) vs. $23 million (5 cents/share) in the same quarter a year earlier. A substantial increase from the year earlier quarter.

Revenue: Rose 5.7% to $5.89 billion YoY.

Actual vs. Wall St. Expectations: The company beat the mean estimate of 18 cents per share. Estimates ranged from 14 cents per share to 20 cents per share.

Quoting Management: “We are building a culture of growth at Macy’s, Inc. Our performance cannot be attributed to a single factor, but rather to the coordinated execution of a series of complementary customer-centric strategies. In the first quarter, we benefitted from strong topline sales, disciplined margin and expense management, improved credit performance and lower interest expense,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer.

Key Stats: Gross margin shrunk 0.3 percentage point to 39.1%. The contraction appeared to be driven by rising costs as the figure rose 6.2% from the year earlier quarter while revenue rose 5.7%.

Over the last five quarters, revenue has increased 6.4% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 7.2% from the year earlier quarter.

Competitors to Watch: Saks Incorporated (NYSE:SKS), J.C. Penney Company, Inc. (NYSE:JCP), Kohl’s Corporation (NYSE:KSS), Nordstrom, Inc. (NYSE:JWN), Dillard’s, Inc. (NYSE:DDS), Sears Holdings Corporation (NASDAQ:SHLD), The Bon-Ton Stores, Inc. (NASDAQ:BONT), Target Corporation (NYSE:TGT), Wal-Mart Stores, Inc. (NYSE:WMT), and The TJX Companies, Inc. (NYSE:TJX)

Stock Performance: Shares of M are up 8.24% to $28.50 per share from the previous close of $26.33.

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