Macy’s Inc. is proving that its recent rebound isn’t just a fleeting moment: The company posted third-quarter same-store sales that beat Wall Street’s expectations. Even so, the shares fell in early trading — a sign that investors are still skeptical the rebound will hold.
Comparable sales, a closely-watched measure, rose 3.3 percent for owned and licensed stores, topping analyst expectations of 2.8 percent. It was the fourth straight quarter of growth.
Key insights
Macy’s earlier struggles adapting to online shopping now look like a thing of the past: The latest data, including double-digit e-commerce growth, show the retailer’s rebound has staying power. Macy’s is heading into the crucial holiday shopping season with momentum. The retailer expressed confidence the gains will continue, raising its full-year forecast for profit to as much as $4.30 a share, up from a previous outlook of as much as $4.15. “The business is continuing to firm up,” said Alex Arnold, managing director of the consumer sector at Odeon Capital Group. “I think they are well set-up for the holiday.” Even so, the shares swung between gains and losses in early trading — a sign that some investors are still skeptical.
Market reaction
The shares fell as much as 5 percent to $34 in early trading. Macy’s stock has gained 42 percent so far this year.
