Shares for Macy’s Inc. are up more than 6% in premarket trading after the retailer posted holiday revenues that showed only a slight decline.
The Cincinnati-based firm announced that it had logged same-store sales for the months of November and December that dropped 0.7% on an owned basis and fell 0.6% on an owned-plus-licensed basis. Investors appeared bullish on signs of improvement for the struggling department store chain, sending its stock up 6.40% to $18.80 at 8:40 a.m. ET.
“Macy’s Inc.’s performance during the holiday season reflected a strong improvement from the third quarter. Our digital business and Growth150 stores performed well. Additionally, customers responded to our gifting assortment and marketing strategy, particularly in the 10 days before Christmas,” said Chairman and CEO Jeff Gennette. “The entire organization committed to delivering holiday 2019, and it showed up in our execution.”
Ahead of the crucial holiday shopping season, Macy’s in late November released its third-quarter earnings report showing its first same-store sales declined in two years. Comps dipped 3.5%. The department store also slashed its guidance for the fiscal year. Macy’s blamed the disappointing results on the warmer fall season, coupled with slowing foot traffic, amid a broader shift from brick-and-mortar to online retail.
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In the past few months, Macy’s has been investing more resources in its e-commerce mobile app, which it said is on track to exceeding the goal of $1.5 billion in sales, as well as enhancing its website to promote online sales and drive in-store visits.
The holiday sales results come a day after the company confirmed that it would close 15 stores across the country in early 2020. In a statement to FN, a spokesperson said that Macy’s “regularly review[s] our store portfolio” and will provide an update of its growth plans and three-year strategy at its investor day on Feb. 5.
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