Macy's Inc. (NYSE: M) reported higher-than-expected quarterly sales and earnings on Wednesday, Nov. 13, the result of strong promotions and advertising and tailoring merchandise to local markets.
For the quarter ended Nov. 2, Macy's earned $177 million, or 47 cents per share, a 22 percent increase over the $145 million, or 36 cents per share, earned a year ago. The retailer reported revenue of $6.28 billion in sales in the quarter, up 3.3 percent from $6.08 billion reported last year. These figures beat analysts' predictions of per-share earnings of 39 cents and revenue of $6.19 billion.
Comparable-store sales, which include stores open at least a year, and online sales, rose 3.5 percent.
"We were able to achieve a very successful third quarter of 2013, despite the tepid economic climate," Macy's CEO Terry J. Lundgren said in a statement. "Our business improved during the quarter, with particular strength in October, so we are entering the fourth quarter with confidence. We have curated an outstanding offering of the best gifts, fashion, value and service for our customers throughout the Christmas season."
As the retailer heads into the pivotal holiday shopping season, Macy's said stores are getting prepared as merchandise inventory is up 7 percent year on year to $7.716 billion. For the first time in the company's histroy, Macy's stores will welcome shoppers on Thanksgiving Day to kick-off Black Friday weekend.
The quarter is a bright spot for the retailer, who didn't see as much success in the second quarter. Disappointing Q2 earnings marked the first time the retailer's results had missed analysts' expectations in six years.
Shares of Macy's rose 8.1 percent to $50.08 in premarket trading on Wednesday on relief that the retailer was back on track.
For more see:
-This Macy's press release
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