UPDATE 1-Macy's, Saks beat holiday quarter expectations
* Macy's Q4 adj EPS $2.05 vs est $1.99
* Saks Q4 adj EPS 17 cents vs est 15 cents
* Macy's, Saks both focus on online, omni channel platforms
* Sees comparable sales rise in the year
Feb 26 (Reuters) - Department store chains Macy's Inc and Saks Inc both beat holiday quarter profit estimates and said sales at established stores were expected to rise in the coming year, as they invest in online technology.
Macy's, which has been actively wooing "millennials," or shoppers born in and around 1980s, has invested heavily in its technology systems to integrate stores with its e-commerce business.
For the quarter, online sales at the company that also operates the Bloomingdale's chain of luxury stores, soared 47.7 percent.
The retailer on Tuesday reported net income of $730 million, or $1.83 per share for the quarter that ended Feb. 2. Excluding pretax expenses, it earned $2.05 a share, while analysts, on average, were expecting $1.99 a share.
Saks, which has been investing tens of millions of dollars into updating e-commerce systems as it tries to catch up to Nordstrom Inc, earned $20.4 million, or 13 cents per share for the quarter that ended Feb. 2, versus a year-earlier profit of $40 million, or 21 cents per share.
Excluding store closing expenses, asset impairment charges and other items, Saks had a profit of 17 cents per share. Wall Street analysts were expecting 15 cents, according to Thomson Reuters I/B/E/S.
Chief Executive Stephen Sadove said while he expects 2013 to be "somewhat volatile" as higher tax rates take effect, he also expects sales at established stores to rise 3 percent to 5 percent for the full year.
Macy's said it expected same-store sales to rise about 3.5 percent during the year and forecast earnings of $3.90 to $3.95 a share, compared with an average Wall Street estimate of $3.41, according to Thomson Reuters I/B/E/S.