Macy's reports positive comparable sales growth, initiates restructuring plan
For the fourth quarter, Macy’s, Inc. reported net sales of 8,455 million dollars against 8,672 million dollars in the fourth quarter of 2017, while for the full year, the company’s net sales reached 24,791 million dollars compared to 24,939 million dollars in 2017. Fourth quarter comparable sales on owned basis rose by 0.4 percent and on owned plus licensed basis, increased 0.7 percent. Full year comparable sales on owned basis were up 1.7 percent and on owned plus licensed basis, increased by 2 percent. Macy’s also announced a restructuring plan that it said should help it generate annual cost savings of 100 million dollars, starting in fiscal 2019.
“2018 was an important year for Macy’s, Inc. as we changed the trajectory of the company and delivered positive comparable sales for the full year. I’m pleased with the impact of our strategic initiatives, particularly as they gained traction in the back half of the year,” said Jeff Gennette, Macy's, Inc. Chairman & CEO in a statement, adding, “The steps we are announcing to further streamline our management structure will allow us to move faster, reduce costs and be more responsive to changing customer expectations.”
Macy’s posts decrease in Q4 and full year profit
Net income for the quarter was 740 million dollars compared to 1,347 million dollars, while diluted earnings per share were 2.37 dollars compared to 4.38 dollars. The company’s fourth quarter Ebitda reached 1,287 million dollars against 1,483 million dollars. Adjusted net income was 850 million dollars compared to 876 million dollars and adjusted diluted earnings per share were 2.73 dollars against 2.85 dollars in the previous year’s fourth quarter. Adjusted ebitda reached 1,399 million dollars compared to 1,667 million dollars.
For the full year, Macy’s reported net income of 1,108 million dollars compared to 1,566 million dollars, in 2017, while diluted earnings per share were 3.56 dollars compared to 5.10 dollars, and Ebitda for the year reached 2,661 million dollars compared to 2,818 million dollars in the previous year. Adjusted net income for 2018 was 1,301 million dollars compared to 1,162 million dollars, while diluted adjusted earnings per share were 4.18 dollars compared to 3.79 dollars and adjusted ebitda was 2,877 million dollars against 3,109 million dollars.
Macy’s provides outlook for FY19
For the fiscal year 2019, Macy’s expects comparable sales on owned basis and owned plus licensed basis to range between flat to increase of 1 percent. Net sales are expected to remain approximately flat and Diluted EPS excluding settlement charges, impairment and other costs is expected to range from 3.05 dollars to 3.25 dollars.
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