Macy’s, Inc. (NYSE:M) Moves Up Sharply After Increase In Sales
Macy’s, Inc. (NYSE:M), the $20.56 billion market capped in store and online retailer which is tracked by the S&P 500 index saw its stock value shoot up by a huge 7.64 percent during trading on December 9. This huge upsurge in the investor’s confidence in this retail player happened on the back of the company’s announcement on January 8 (after market closing) that its holiday period sales for the November/December time frame (which includes the Thanksgiving black Friday sales) had shot up by a impressive 3.6 percent. This increase was tracked on the sales similar stores had recorded in 2012 for the same time period.
Holiday Season Sales Picks Up Impressively
On the back of such strong showing during the most important three months of the year, Macy’s, Inc. (NYSE:M) has upped reiterated its previously provided earnings per share forecast for the year to come in between $3.8 and $3.9 per share. It has also provided a bullish forecast for the current year, thanks to the general improvement in the economic scenario in U.S and a sharp pickup in consumer confidence in the last quarter. For full year 2014, the Cincinnati headquartered retailer expects earnings per share to come in between $4.4 and $4.5 per share which would be a 15 percent growth over FY13 earnings.
Cost Cutting and Right Sizing Efforts Continue
In the same statement, Macy’s, Inc. (NYSE:M) also disclosed that close to 2,500 employees will be asked to leave as part of a workforce right sizing exercise. It has also identified 5 stores which were closed down for non performance. These hard decisions of the firm have to be seen as a continuation of its efforts to bring in operational changes to increase in bottom line and emerge as a more profitable retailer.