The Reason Macy, Inc.'s Shares Popped 11% Despite a Lackluster Third Quarter

Shares of Macy's, Inc. (NYSE: M), one of the largest U.S. department stores under brands such as Macy's, Bloomingdale's, Bloomingdale's Outlet, and Bluemercury, popped 11% as of 3:00 p.m. EST, after the retailer beat earnings estimates and had a positive outlook for the upcoming holiday season.

Despite the uptick in Macy's shares today, it was far from a blockbuster third quarter. Comparable-store sales, those at stores open more than 12 months, dropped 3.6% which was worse than the anticipated 2.6% decline. That, in combination with store closings, drove Macy's total sales 6.1% lower to $5.28 billion during the third quarter compared to the prior year. Despite the sales headwinds, Macy's did report adjusted earnings per share of $0.23, topping analysts' estimates calling for $0.19 per share.

"Overall, we're pleased with the results for the third quarter and we remain on track to meet our full-year sales and earnings guidance for 2017. Importantly, we also saw better gross margin performance primarily due to our tightly controlled inventory position," said Macy's Inc. CEO Jeff Gennette in a press release.

Source: Fool.com