The company’s holiday performance marked the third consecutive quarter of sequential improvement driven by strong digital sales growth.

Net income fell to $160M, or 50 cents per share, from $340M or $1.09 per share, a year earlier. Excluding onetime charges, the company earned 80 cents per share, a huge increase in the 12 cents that was expected by analysts. Sales also beat analysts’ expectations despite dropping from $8.34bn to $6.7bn.

E-commerce sales were up by 21 per cent in period and the company stated that digital sales accounted for around 44 per cent of new sales.

“Macy’s, Inc.’s fourth quarter results exceeded our expectations across all three of our brands, as we showed continued quarter-to-quarter sales performance improvements and returned to profitability,” said Jeff Gennette, Chairman and Chief Executive Officer.

“Performance was driven by the home, beauty, jewellery and watch categories, growth in digital sales and by acquiring new customers. Our investments in digital innovation continued to pay off in the quarter, with digital sales up 21% from 2019.