Macy’s beats earnings expectations and unveils ‘A Bold New Strategy’ to revitalize the brand, but the stock falls

Macy’s Inc.
M,
-1.03%
reported Tuesday a fiscal fourth-quarter earnings beat and announced a “A Bold New Chapter” strategy aimed at boosting growth, that includes monetizing up to $750 million of assets through 2026, but the stock fell 2.8% in premarket trading. Macy’s swung to a net loss for the quarter to Feb. 3 of $71 million, or 26 cents a share, from $508 million, or $1.83 a share, in the year-ago period. Excluding nonrecurring items, including $1 billion in impairment and restructuring costs, adjusted earnings per share of $2.45 beat the FactSet consensus of $1.98. Total revenue fell 2.4% to $8.38 billion, but that was above the FactSet consensus of $8.09 billion. Same-store sales, or sales of stores open at least a year, fell 5.4%, to miss expectations of a 4.7% decline. For the current full fiscal year, the company expects adjusted EPS of $2.45 to $2.85, which surrounds the current FactSet consensus of $2.77. Chief Executive Tony Spring said the new strategy “challenges the status quo to create a more modern Macy’s,” and it includes revitalizing the sales assortment, accelerating luxury growth and rationalizing and monetizing the supply chain asset portfolio.