Macy's Rises 6%; Co. Plans Closure Of Underproductive Locations; Q4 Profit Above View

(RTTNews) - Shares of Macy's, Inc. (M) are rising more than 6 percent Tuesday morning after reporting better-than-expected fourth-quarter profit. The department store chain operator also announced a new staregy "A Bold New Chapter" to return the company to enterprise growth.

As part of the strategy, the company plans to close down about 150 underproductive locations, including nearly 50 by the end of the fiscal year. Further, approximately 15 Bloomingdale's nameplate stores and at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels are expected to be opened over the next three years.

The company posted earnings excluding one-time items of $685 million or $2.45 per share for the fourth quarter, compared to last year's $524 million or $1.88 per share. Analysts expected the company to report earnings of $1.96 per share.

Looking ahead, Macy's expects annual adjusted EBITDA growth in the mid-single-digit range, capital spend to be below 2024 levels, and free cash flow to return to pre-pandemic levels.

Macy's shares are at $20.34 currently. The stock has been trading in a range of $10.54 - $23.19 in the last 1 year.