NEW YORK, United States -- Macy’s Inc., the second-largest U.S. department-store chain, rose in early trading after forecasting annual profit that surpassed analysts’ estimates amid a surge in online sales.
The shares advanced 4.2 percent to $40.15 at 8:37 a.m. in New York, after rising to $40.40.
Earnings per share for fiscal 2013 will advance to as much as $3.95, the Cincinnati-based retailer said in a statement today. Analysts projected $3.84, the average of 18 estimates compiled by Bloomberg.
Chief Executive Officer Terry Lundgren has focused on tailoring merchandise to suit local tastes and benefited from exclusive Tommy Hilfiger, Sean John and Madonna products. Fourth-quarter revenue climbed 7.2 percent to $9.35 billion while online sales soared 48 percent, Macy’s said today.
Net income in the quarter ended Feb. 2 fell 2 percent to $730 million, or $1.83 a share, from $745 million, or $1.74, a year earlier, when it booked one-time gains from the sale of store leases, Macy’s said.
The shares had dropped 1.3 percent this year through yesterday, compared with a 4.5 percent gain for the Standard & Poor’s 500 Retailing Index.
(Macy’s will hold a conference call to discuss earnings at 10:30 a.m. New York time today. To access, visit M US <Equity> LIVE <GO>)
--Written by: Cotten Timberlake; Editors: James Callan, Kevin Orland