shares soared 10% in Wednesday premarket trading after the department store retailer reported first-quarter earnings that blew past consensus. Net income totaled $139 million, or 45 cents per share, up from $78 million, or 26 cents per share, for the same period last year. EPS was 48 cents excluding impairment and other costs, and 42 cents per share excluding asset sale gains. Sales totaled $5.54 billion, up from $5.35 billion last year. The FactSet consensus was for EPS of 36 cents and sales of $5.43 billion. The company said it experienced double-digit growth in its digital business. Same-store sales on an owned basis grew 3.9%, and were up 4.2% on an owned-plus-licensed basis. The FactSet consensus was for a same-store sales increase of 0.7%. Macy’s said it is ending its joint venture with Fung Retailing Limited in China, but will remain active on Alibaba Group Holding Ltd.’s
Tmall platform and social media channels. Macy’s e-commerce team in San Francisco will manage the China business with help from Fung Omni in Shanghai. Macy’s now expects fiscal 2018 EPS of $3.75 to $3.95, excluding the anticipated settlement of charges tied to benefit plans and other charges. This is 20 cents higher than previous guidance and ahead of the $3.61 FactSet consensus. Sales are expected to range from a 1% decline to a 0.5% increase from $24.8 billion last year. And same-store sales on an owned-plus-licensed are expected to be up 1% to 2%. The FactSet guidance is for sales of $24.8 billion and same-store sales are expected to grow 0.4%. Macy’s are up 18.8% for the year to date, and up 31.2% for the last 12 months. The S&P 500 index
is up 13% for the last year.