**Macy’s Inc.** reported better-than-expected quarterly earnings on Wednesday as shoppers responded to heavy promotions during the holiday season.
The department store operator said net income fell to $256 million, or $1.13 per share, in the quarter ended January 30, compared with $272 million, or $1.15 per share, a year earlier.
Excluding items, the company earned $1.39 per share, beating analysts’ average estimate of $1.19, according to IBES data from Refinitiv.
Total sales decreased 3.8% to $5.51 billion, but also beat analysts’ expectations of $5.49 billion.
Comparable sales fell 3.3%, a smaller decline than the 3.6% estimated by analysts.
Chief Executive Officer Jeff Gennette said in a statement that the company was ‘pleased with our fourth quarter performance, which exceeded our expectations.’
‘We drove comparable sales growth in key categories such as women’s apparel and accessories, and home, while continuing to manage our expenses effectively,’ he said.
The company said it expects net sales for the fiscal year 2023 to be in the range of $23.9 billion to $24.3 billion, representing a decrease of approximately 1.7% to 3.5% compared to 2022.
Comparable sales are expected to decrease by approximately 0.5% to 2.0%.
The company also announced that it will close 12 Macy’s stores in early 2023 as part of its three-year plan to close 150 underperforming stores.
Macy’s shares were up 2.7% in premarket trading.
The results come as department stores face increasing competition from online retailers such as Amazon.com Inc. and fast-fashion chains such as H&M and Zara.
In recent years, Macy’s has been working to revamp its business by closing underperforming stores, investing in its e-commerce platform, and launching new brands.
The company has also been focused on offering more exclusive merchandise and experiences to its customers.
The fourth-quarter results suggest that Macy’s is making progress in its turnaround efforts, but the company still faces challenges in the face of increasing competition.
**Highlights:**
+ Net income fell to $256 million, or $1.13 per share
+ Adjusted earnings per share of $1.39 beat estimates
+ Total sales decreased 3.8% to $5.51 billion
+ Comparable sales fell 3.3%
+ Company expects net sales for fiscal 2023 to decrease by approximately 1.7% to 3.5%
+ Comparable sales expected to decrease by approximately 0.5% to 2.0%
+ Company to close 12 Macy’s stores in early 2023.
