Macy’s Analysts Break Down Q3 Earnings: ‘Potential For New Value Unlocks’

Macy’s on Thursday reported third-quarter adjusted earnings per share (EPS) of $1.23 on revenue of $5.4 billion. Both numbers topped consensus analyst estimates of 31 cents and $5.2 billion, respectively. Revenue was up 35.3 percent from a year ago. Macy’s reported 35.6 percent comparable-store sales growth, exceeding analyst estimates of 29.3 percent. Online sales were up 19 percent year-over-year and 49 percent on a two-year basis. Macy’s said online sales now make up 33 percent of total sales, up from just 23 percent in 2019. Perhaps the most bullish news from Macy’s is that the company has hired consulting firm AlixPartners to review its business model. Activist investor Jana Partners has been pressuring Macy’s to spin-off its e-commerce business to potentially unlock value. Voices From The Street Morgan Stanley analyst Kimberly Greenberger said rising costs and margin risks keep her cautious on Macy’s. “Rising costs & difficulty lapping robust full price sales …

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