Macy's reports better than expected Q3

Macy’s, a large industry customer, reported better than expected third quarter earnings this morning and increased its full-year earnings guidance.

Sales grew 3.8% to $6.1 billion, and same store sales rose 3.7%.

Online sales for Macy’s and Bloomingdale’s combined rose 40.4% and positively impacted same store sales by 2.2 points.

Net income increased 4.3% to $145 million. Earnings per share were 36 cents vs. 32 cents for the same period last year.

Macy’s increased its earnings guidance for the full year, and now expects earnings per share of $3.35 to $3.40 vs. the $3.30 to $3.35 previously expected.

Earlier, the company had raised its second half same store sales outlook to an increase of 4% vs. the former forecast of up 3.7%.

For the fourth quarter, Macy’s expects same store sales to increase 4.2%. For the year, the company expects same store sales to increase 3.9%.