Investing.com -- Macy's has lifted its profit forecast for the full year, as the retailer's new chief executive leads an attempt attempt to rein in costs and revamp its operations.
The department store chain has been the focus of a take-private bid from Arkhouse Management and Brigade Capital that values the company, which has been hit by fierce competition from cheaper rivals and online offerings, at $6.58 billion.
In February, Macy's (NYSE:M) unveiled a turnaround plan that included the shuttering of around 150 stores through 2026. The firm said the push would save around $100 million in expenses this year.
Chief Executive Tony Spring, who took over at the helm of the company in February, said in a statement that Macy's has been executing this overhaul drive with "discipline and efficiency."
"Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth,” Spring said.
Net sales in the retailer's first quarter dropped by 3.7% versus the year ago period to $4.8 billion. Analysts had called for a top-line figure of $4.81 billion.
Diluted earnings per share slipped to $0.22 from $0.56 a year ago, while gross margin of 39.2% was also below estimates of 39.6%.
But Macy's improved its annual earnings per share guidance to a range of $2.55 to $2.90. Its previous outlook had called for $2.45 to $2.85 a share, while Wall Street analysts had seen the figure at $2.62.
"We see several puts and takes to the result," analysts at Goldman Sachs said in a note to clients.
Shares in Macy's were trading slightly higher in early U.S. trading on Tuesday.