Macy’s sees pre-holiday climb thanks to solid earnings

Here’s a surprise: before we even hit the much-anticipated holiday shopping season, at least one retailer is already cashing in on a very strong quarterly earnings report.

Which one? That would be Macy’s (M), which was able to turn a profit even before the madness of Black Friday and the ensuing shopping season. The retail giant saw its revenue rise 3 percent to $6.28 billion in the quarter that ended on November 2. During that time, Macy’s earned 47 cents per share, up from 36 cents per share just a year ago.

Other indicators that have caused optimism include the revenue at stores opened for at least a year, which climbed by 3.5%, outperforming the 2.1% that analysts predicted.

As far as explanations go, they have varied from Macy’s strength in the beauty, jewelry, and home retail areas, the company’s advertising campaign, and even the decreasing price of gas that has led to a little more dispensable income for consumers.

Whatever the case, the retailer’s stock responded quickly, jumping to $49.80 in premarket trading. That represents an increase of $3.47, or 7.5% per share.

With big earnings expected through the holiday season as usual, Macy’s could stay up for awhile. In fact, the strong earnings report is seen by many as a harbinger of better than expected holiday spending for retailers across the board. That remains to be seen, of course.