The shares of Macy’s, Inc. (NYSE:M) witnessed multiple spikes after the retailer announced its third quarter results and the shares closed at $61.65 in the extended trading session. In addition to it, the retailer has forecasted better same-store sales in the holiday season.
Macy’s announced its third quarter results with total sales of $6.19 billion during the quarter, which was comparatively lower than the sales of $6.27 billion in the year ago quarter. The retailer reported operating income of $422 million during the quarter with net cash of $777 million in first three quarter of 2014. Net income during the quarter was $217 million or $0.61 per diluted share against the diluted earnings of $0.47 during the year ago quarter.
While talking about the sales forecast for the current quarter, the chief executive of Macy’s, Inc. (NYSE:M), Terry J. Lundgren, discussed about the latest in-store strategy of the retailer.
Mr. Lundgren, said,
“Going forward, we remain optimistic for the fourth quarter based on several factors. First, we have developed an outstanding merchandise assortment for holiday gift-giving and self-purchase rooted in great style, exclusive offerings and outstanding value during this key shopping period. Second, we have enhanced our transition to fresh post-holiday vacation and resort assortments. Third, we have new store, omnichannel and marketing strategies in place that we believe will drive incremental business throughout the fourth quarter.”
Macy’s, Inc. (NYSE:M) adjusted its guidance for fiscal 2014 with diluted earnings per share of $4.25 to $4.35 during the year, which is lower than the previous expected guidance of $4.40 to $.50 per diluted share.
The retailer has invested into online portal and same-day delivery services to compete with other retailers including Amazon.com, Inc. (NASDAQ:AMZN). “Buy Online Pick Up in Store” is the latest service from the retailer under which customers can purchase goods online and pick them up later from the store.
This article has been written by Prakash Pandey.