Macy’s Inc (NYSE:M) stock rose 0.50% (As on May 22, 1:56:00 AM UTC-4, Source: Google Finance) after the company reported better-than-expected earnings for the first quarter which saw the department store operator raise its full year outlook.  Macy’s sales and earnings declined in the first quarter but the department store giant reported that its turnaround efforts are beginning to yield positive results. Macy’s net income fell 60% to $62 million, or $0.22 per share, for the quarter ended May 4, compared with $155 million, or $0.56 per share for the year-ago period. Same-store sales, fell 1.2% on an owned basis and down 0.3% on an owned-plus-licensed-plus-marketplace basis, less than the Street had expected. Macy’s nameplate banner continues to be its weakest link, with same-store sales down 1.6%. Same-store sales at Bloomingdale’s rose 0.8% and were up 4.3% at Bluemercury. Net revenue from Macy’s media network rose $8 million to $37 million amid increased vendor engagement.

Further, Macy’s, Inc. go-forward business comparable sales, inclusive of go-forward locations and digital, down 0.9% on an owned basis and up 0.1% on an owned-plus-licensed-plus-marketplace basis. Credit card revenues, net declined by $45 million to $117 million. The decline was attributable to the impact of expected higher delinquency rates and net credit losses within the portfolio. Macy’s Media Network revenue, net rose $8 million to $37 million from increased vendor engagement. Merchandise inventories were up 1.7% versus first quarter of 2023. Entering the second quarter of 2024, end-of-quarter inventories are well-positioned for the upcoming summer season.

M in the first quarter of FY 24 has reported the adjusted earnings per share of 27 cents, beating the analysts’ estimates for the adjusted earnings per share of 18 cents. The company had reported the adjusted revenue decline of 2.7 percent to $4.85 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $4.84 billion. Gross margin rate for the quarter was 39.2%, down from 40.0% in the first quarter of 2023. Merchandise margin declined 100 basis points, primarily reflecting additional discounting for slower-moving warm weather products.

Macy’s Inc. today revised its full-year guidance, raising expectations for adjusted earnings per share to a range of $2.55-$2.90 from previous guidance of $2.45-$2.85.

It also narrowed the range for full year net sales, which are now expected to land between $22.3 billion and $22.9 billion. Originally, Macy’s Inc. forecast net sales of $22.2 billion to $22.9 billion.