Shares of Macy’s Inc. shot up 12.4 percent to $14.17 in premarket trading on Thursday because the retailer showed some unexpected strength on the underside line because it navigated a troublesome sales environment.  

The corporate’s adjusted earnings per share fell to 21 cents within the third quarter from 52 cents a yr earlier, but that was well ahead of the breakeven performance analysts had penciled in, based on FactSet. 

Net income fell 60 percent to $43 million, or 15 cents a diluted share, from $108 million, or 39 cents, a yr earlier.

Revenues for the three months ended Oct. 28 decreased 7.8 percent to $5 billion from $5.5 billion a yr earlier. 

 Jeff Gennette, chairman and chief executive officer of Macy’s, said: “We delivered better-than-expected top and bottom line third quarter results and are entering the vacation period in a healthy inventory position. Our portfolio of nameplates are leading gift-giving destinations across the worth spectrum offering exclusive products. We have now refined our gift assortment, simplified our promotions and improved our shopping experience. Looking forward, now we have strong continuity with Tony Spring transitioning to CEO in February and I’m confident he and our leadership team will guide Macy’s, Inc. to sustainable long-term profitable sales growth in the longer term.”

The Macy’s division logged a 7.6 percent comparable sales decline on an owned basis within the quarter and a 6.7 percent drop when the licensed businesses were included. Bloomingdale’s fared higher with a 3.2 percent owned comp decline and a 4.4 percent drop with the licensed businesses. And the Bluemercury beauty business comped up 2.5 percent on an owned basis.

Inventories at the top of the quarter were down 6 percent from a yr earlier and down 17 percent compared with 2019.

Macy’s narrowed its guidance for adjusted EPS for the complete yr and is now searching for profits to range from $2.88 to $3.13, where the outlook previously stood  at $2.70 to $3.20.