Macy's holiday-quarter sales miss analysts' estimates

Taxi's drive past Macy's Inc. flagship store in New York.
Peter Foley | Bloomberg | Getty Images
Taxi's drive past Macy's Inc. flagship store in New York.

Department store chain Macy's reported a 2 percent rise in sales in the holiday shopping quarter, falling short of analysts' estimates.

Macy's net income fell to $793 million in the fourth quarter ended Jan. 31, from $811 million a year earlier.

However, earnings rose to $2.26 per share from $2.16 due to a lower share count.

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Net sales rose to $9.36 billion from $9.2 billion. Analysts on average had expected $9.39 billion, according to Thomson Reuters I/B/E/S.

The company's shares were down 1.7 percent at $63.10 in premarket trading on Tuesday.

Shares of the retailer were lower in premarket trading following the announcement. (Click here to track its shares.)

Earlier this month, Macy's upped its full-year guidance for 2014 with expected earnings of between $4.35 and $4.37 per diluted share.

The Cincinnati-based company also announced the acquisition of the luxury beauty products retailer, Bluemercury, for $210 million in cash. The transaction is expected to complete in the current quarter.

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In early January, the company announced it would close more than a dozen stores and taken an estimated $100 million to $110 million charge that would be booked in the fourth quarter.

Macy's stock is trading about 19 percent higher than it was a year ago, reflecting robust earnings throughout 2014.

CNBC's Reem Nasr contributed to this report.