Macy’s Inc. shares jumped 9.3% in Tuesday premarket trading after the department store retailer reported fourth-quarter earnings that beat expectations and gave upbeat guidance. Net income totaled $1.33 million, or $4.31 per share, up from $475.0 million, or $1.54 per share, for the same period last year. Adjusted EPS, excluding tax benefits and other items, was $2.82, beating the $2.67 FactSet consensus. Sales were $8.666 billion, up from $8.515 billion last year and met the $8.666 billion FactSet consensus. Same-store sales on an owned basis rose 1.3%, and were up 1.4% on an owned-plus-licensed basis. The FactSet consensus was for 0.4% growth. Macy’s expects same-store sales growth on both an owned and an owned-plus-licensed basis to be flat to up 1% in fiscal 2018. Sales are expected for fall between 0.5% and 2%. And adjusted EPS is expected to be $3.55 to $3.75. The FactSet consensus is for a same-store sales decline of 0.8% and EPS of $3.05. The retailer sold floors 8 through 14 of its Chicago State Street store to a private real estate fund sponsored by Brookfield Asset Management in February. Macy’s will receive $27 million of consideration and a $3 million contribution for certain improvements. The transaction is expected to close in the first half of fiscal 2018. And the company is exploring chances to sell the 240,000-square-foot I. Magnin part of the San Francisco Union Square building. Macy’s stock is up 29.4% for the past three months, but down 18.2% for the last 12 months. The S&P 500 index is up 17.3% for the past year.
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