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CINCINNATI - Macy's Inc. exceeded analyst expectations with its fourth-quarter earnings performance and raised its profit predictions for the year ahead. The news immediately sent Macy's stock price surging, up nearly 5 percent to $40.30 in pre-market trades.
"The numbers reflect our success in pursuing the right strategies," CEO Terry Lundgren said in a press release announcing fourth-quarter and 2012 results. "The best news of all is that we continue to see significant upside opportunity ahead in those strategies that have worked so well since we reorganized the company in 2009."
Macy's earned $2.05 per share on revenue of $9.35 million for the fourth quarter. Both numbers were better than analysts had projected. Macy's added more than $1 billion in top-line sales growth in the 2012 fiscal year. Comparable-store sales increased 3.7 percent. Full-year earnings per share grew more than 20 percent to $3.46, including one-time adjustments for store closings and debt reductions. It's the fourth straight year of double-digit profit growth for the Cincinnati-based department store chain.
Macy's announced 2013 earnings that points to continued double-digit profit growth, with diluted earnings per share expected to fall between $3.90 and $3.95. That's higher than the $3.85 expectation of analysts prior to this morning's results.
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