Macy's offers cautious holiday outlook as company manages turnaround story after best sales growth in 3 years

Core Viewpoint - Macy's reported better-than-expected third quarter results but provided a cautious outlook for the holiday quarter, anticipating a decline in net sales [1][2]. Financial Performance - In the third quarter, Macy's revenue was $4.7 billion, matching last year's figures and exceeding Wall Street's estimates of $4.6 billion [2]. - Adjusted earnings per share for the third quarter were $0.04, surpassing analysts' expectations of a $0.14 loss [2]. - Same-store sales increased by 2.5%, significantly higher than the expected 0.6% growth, marking the fastest growth in 13 quarters [3]. Future Outlook - For the fourth quarter, Macy's expects net sales to decline by 3%-5% year-over-year, projecting a range of $7.35 billion to $7.5 billion [2]. - The company raised its full-year same-store sales outlook to a range between unchanged and up 1%, an improvement from the previous forecast of a decline of up to 1.5% [6]. - Adjusted earnings per share for the full year are now expected to be between $2.00 and $2.20, up from the previous range of $1.70-$2.05 [7]. Strategic Initiatives - Macy's CEO Tony Spring emphasized the importance of cautious guidance to maintain credibility with investors, especially after three consecutive quarters of beating expectations [4][5]. - The company plans to close 150 stores over a three-year period, having already closed 64 stores last year [7]. - The luxury segment, particularly Bloomingdale's, is performing well, with an 8.8% increase in same-store sales, the highest growth in 13 quarters [7].