CINCINNATI -- Macy's Inc. said Thursday that a key revenue figure rose 4.9 percent in September, edging past analyst expectations ahead of the key holiday selling season.
After steep sales declines during the recession, department stores retooled their clothing offerings in an effort to improve results. Macy 's ( M - news - people ) has said that its strategy of tailoring merchandise for local markets is helping it overcome the weakening economy.
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Macy's, which is based in Cincinnati, said revenue in stores open at least one year were strong at Macy's and its pricier Bloomingdale's department stores, although it does not break out results from the two chains.
Analysts had expected revenue in stores open at least one year to grow 4.4 percent. The measure is considered a key gauge of a retailer's financial health because it excludes stores that open or close during the year.
Online sales continued to be a bright spot, rising 43.3 percent in September.
The September result "underscores that our business remains on track, despite the persistently negative macroeconomic news," said CEO Terry Lundgren. "We are feeling quite confident that we will continue to gain market share as we head toward the holiday selling season."
Macy's said it now expects third-quarter revenue growth in stores open at least one year to be at the high end of its previous guidance of 4 percent to 4.5 percent. It still expects the measure to rise from 4 percent to 4.5 percent in the fourth quarter.
Total revenue for the five weeks ended Oct. 1 rose 5.3 percent to $2.3 billion, from $2.18 billion last year.
Year-to-date, revenue in stores open at least one year rose 5.6 percent and total revenue rose 6.1 percent to $15.84 billion.
Shares dipped 6 cents to $26.11 in premarket trading.
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