Macy's Shares Spike After Earnings Beat Estimates, 100 Store Closures Announced

Macy's Inc. shares jumped 11% in Thursday premarket trading after the retailer reported second-quarter earnings that beat estimates and announced 100 store closures. Net income totaled $11 million, or 3 cents per share, down from $217 million, or 64 cents per share, for the same period last year. Adjusted earnings were 54 cents per share, beating the FactSet consensus of 48 cents per share. Revenue totaled $5.87 billion, down from $6.10 billion last year but beating the FactSet estimate of $5.77 billion. Same-store sales on an owned-plus-licensed basis fell 2%, above the FactSet consensus of 4.7%. Macy's also announced plans to close 100 stores out of its total portfolio of 728. Most will close in early 2017. The company is also negotiating the sale of the Macy's Men's Store in San Francisco's Union Square. If the transaction takes place, the store will likely close and an enhanced men's department will be built in the main Union Square location. Macy's shares are down nearly 50% for the past year, while the S&P 500 Index is up 4.4% for the same period.