Department store giant Macy’s on Tuesday reported quarterly earnings that easily surpassed analyst estimates, buoyed by steep discounts and promotions, attracting shoppers back to its stores after a holiday season marred by supply chain challenges and rising inflation.
In the fiscal fourth quarter ended January 29, 2023, the retailer saw its net sales increase by 4.2% to $8.27 billion, exceeding market expectations of $8.17 billion. Comparable sales, a key retail metric that tracks sales at stores open for at least a year, jumped 5.5%, also surpassing estimates of a 4.2% increase.
The company’s net income, however, declined by 40.1% to $244 million, or $1.04 per share, compared to $408 million, or $1.54 per share, in the same period last year. This was primarily due to higher markdowns and clearance sales, as well as increased supply chain and labor costs.
Despite the decline in net income, Macy’s surpassed analysts’ earnings per share estimates of $1.00. The retailer’s strong sales performance was driven by its successful omnichannel strategy, including its mobile app and website, which contributed to a 14.4% increase in digital sales.
The company also benefited from its loyalty program, which now has over 54 million members. Macy’s credited its various promotions and discounts, such as its .
