American retailer Macy’s swung to its first quarterly profit in a year and beat expectations. They reported revenues at $6.78bn for the quarter ending Jan 2021 vs expectations of $6.5bn, though it was lower than $8.34bn a year ago. Net income fell to $160mn vs $340mn a year earlier. Macy’s noted same-store sales (owned plus licensed basis) fell 17.1% in the quarter YoY while analysts expected a 21.3% drop. E-commerce sales were up 21% in the same period with digital sales at 44% of net sales. The company ended the year with $1.7bn in cash and repaid $530mn in debt last month at maturity. The company cut inventory levels and relied less on deep discounting over the holidays to help keep profits above water – inventory was down 27% from Q4 2019. “Macy’s, Inc.’s fourth quarter results exceeded our expectations across all three of our brands, as we showed continued quarter-to-quarter sales performance improvements and returned to profitability,” said Jeff Gennette, chairman and CEO. Macy’s bonds were trading higher – its 4.5% 2024s were up 1.4 cents to 84.5 cents on the dollar, yielding 6.2%.
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