Shares of Macy’s (NYSE: M) surged nearly 5% in premarket trading Tuesday after the company reported better-than-expected EPS and net sales for Q4 2021.

Macy’s posted Q4 2021 EPS of $2.45, topping the consensus estimates of $2 per share. Net sales rose to $8.67 billion, up 28% YOY, and compared to the analyst consensus of $8.47 billion.

The gross margin stood at 36.5%, up from 33.7% in the year-ago period and beating the analyst expectations of 35.8%.

Owned plus licensed comparable sales rose by 27.8%, compared to the analyst expectations of 25.3% growth. Owned basis comparable sales climbed by 28.3%, beating the expected 26% growth. Digital sales surged by 12% YOY.

For full-fiscal 2023, Macy’s expects adjusted EPS in the range of $4.13 to $4.52, compared to the analyst consensus of $3.98 per share. The company expects net sales between $24.46 billion and $24.70 billion, topping the consensus estimates of $24.21 billion.

"Our results in the fourth quarter delivered a strong end to a solid year. I am proud that Macy’s, Inc. outperformed expectations on both the top and bottom lines every quarter in 2021, despite COVID-19 related disruptions, supply chain issues, labor shortages and elevated inflation," said Jeff Gennette, chairman, and CEO of Macy’s.

"Our business has momentum and is serving more customers at more touchpoints in their shopping journey."

By Senad Karaahmetovic | [email protected]