Macy’s stock soars 7% premarket after earnings beat as company raises full-year EPS guidance

Macy’s Inc. stock
M,
-8.07%
soared 7% in premarket trade Thursday, after the department store chain beat consensus estimates for the third quarter and raised its full-year profit guidance. The operator of Macy’s, Bloomingdales and Bluemercury stores posted net income of $108 million, or 39 cents a share, for the quarter, down from $239 million or 76 cents a share, in the year-earlier period. Adjusted per-share earnings came to 52 cents, ahead of the 18 cent FactSet consensus. Sales fell to $5.230 billion from $5.440 billion a year ago, but were ahead of the $5.202 billion FactSet consensus. Same-store sales fell 3.1% on an owned basis and were down 2.7% on an owned-plus-licensed basis. The FactSet consensus was for a decline of 4.3%. Chief Executive Jeff Gennette said luxury outperformed at Bloomingdale’s and Bluemercury and that the company’s Polaris strategy that aims to boost profitability is working. The company is now expecting full-year adjusted EPS of $4.07 to $4.27, up from prior guidance of $4.00 to $4.20. It still expects full-year sales of $24.340 billion to $24.580 billion. Shares have fallen 25% in the year to date, while the S&P 500
SPX,
-0.83%
has fallen 17%.