Macy's shares rise after earnings and sales beat expectations

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Macy's shares on the rise after earnings and sales top Wall Street estimates

shares rose 1.5% in Tuesday premarket trading after the department store retailer reported fourth-quarter earnings and sales that beat consensus. Net income totaled $740 million, or $2.37 per share, down from $1.35 billion, or $4.38 per share, last year. Adjusted EPS of $2.73 beat the $2.53 per share FactSet consensus. Sales of $8.46 billion slipped from $8.67 billion last year, but exceeded the $8.44 billion FactSet expectation. Same-store sales on an owned basis rose 0.

The same-store sales result was also lower than the company's expectations, according to a statement from Chief Executive Jeff Gennette. As part of an ongoing business transformation, Macy's is restructuring its upper management structure to speed decision making and save money. No further detail about the management restructuring was provided in the earnings release. The company expects to save $100 million in 2019 through its transformation efforts.

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