Leaner Macy’s tops estimates for 4Q

Macy’s Inc. posted fourth-quarter earnings that beat analysts’ estimates as the company closes stores and cuts costs in a bid to cope with an industrywide slump.

Profit was $2.02 a share, excluding some items, the Cincinnati-based company said Tuesday. Analysts projected $1.96 on average. While same-store sales declined 2.1 percent, that was better than the 2.2 percent drop predicted by analysts.

The results offered hope that Macy’s can pull out of a downturn that has rocked the largest U.S. departmentstore chain.

Macy’s shares fell a penny to close at $33.21. Macy’s previously announced plans to close 100 underperforming stores, with 68 of those shutting down this year. That move will eliminate about 4,000 jobs, in addition to the 6,200 job cuts announced in January.

The drive to cut costs should generate annual savings of $550 million, beginning in 2017, Macy’s said. That’s higher than a previous goal of $500 million announced in 2015.

Macy’s is also looking for more real estate transactions, which generated about $673 million in cash proceeds last fiscal year, according to the statement.