money Macy’s holiday sales top estimates, expects upbeat 2021 sales
On Tuesday, Macy’s topped fourth-quarter earnings and sales expectations thanks in strength in digital, while same-store sales fell 17%, less than the 23% decline analysts predicted.
Video Transcript
MYLES UDLAND: This morning, a couple of names out right in Brian Sozzi's wheelhouse. Let's start with Macy's, Sozzi. That stock is actually up just a little bit in premarket trade after they came out with their latest quarterly results. What's your take on this quarter, Brian, just because Macy's has had a tough go, regardless of there being a pandemic or not, but actually being able to come out and beat some numbers is a nice change for that company.
BRIAN SOZZI: Myles, do we have to start on Macy's? Can we just move to the next block, because this was another challenging quarter. And I think why you're not seeing Macy's shares rise significantly when you come out and you beat by $0.73 on an adjusted basis really reflects a couple of things.
Perhaps lost in the sauce here, same-store sales on an owned plus licensed basis, a key metric for Macy's, down 17.1%. Gross margins down 300 basis points. If you look at the company's guidance, and it's great, they put out guidance this year and a lot of companies are doing that, like you just mentioned to Henry Schuck over at ZoomInfo, the midpoint of that guidance is actually below consensus by $0.05. So I understand the market's hesitance with a quarter like this.
MYLES UDLAND: Yeah, and I think, to that point, Sozzi, it's interesting that they come out right at the top of the press release one, they're still talking about a liquidity profile, which is interesting in this kind of moment. But they're also saying three-year digital sales guidance of $10 billion is where they want to get over that time period. And that's great, but there is, as you know, the games that management can always play with that guidance.
The Street is looking for current quarter, full year. That's the simple formula. When you do three years, then the question is, OK, so what, are we just writing off the next three years? How exactly are we thinking about this? And certainly-- certainly still some questions--
BRIAN SOZZI: They don't even know, Myles. They're not even sure.
MYLES UDLAND: I don't think-- I'm not sure. I think they're still-- still trying to figure that one out.
