Macy’s posts 3.4 percent rise in January sales, credits local management strategy

Macy’s posts 3.4 percent rise in January sales

CINCINNATI — Macy’s Inc. raised its earnings outlook Thursday after posting improved sales in January, a sign that shoppers are returning to the department store after it suffered more than many retailers in the recession.

The department store operator said Thursday that sales in stores open at least a year rose 3.4 percent in January, helped by its strategy of localizing store management.

The improvement was better than Wall Street expected. Analysts polled by Thomson Reuters projected flat sales.

Macy’s net sales rose 3.4 percent to about $1.26 billion.

The company also raised its fourth quarter earnings outlook to between $1.35 and $1.37 per share. Analysts expect $1.18.

The department store’s stock jumped 76 cents, or 4.7 percent, to $17 in premarket trading.

Macy’s full-year sales at stores open more than a year fell 5.3 percent, while net sales fell 5.6 percent to $23.49 billion.