Macy’s earns $116M in 2Q, tops Street forecasts
Cincinnati — Macy’s saw an important sales figure fall again in the latest quarter, its tenth such decline in a row. The decrease wasn’t as bad as Wall Street analysts expected, but shares in the department store chain fell in premarket trading Thursday.
Traditional department stores have been hurt as more people shop online or at discount stores. Macy’s has cut jobs and closed some stores to try to reverse falling sales. It has also started an off-price brand, and it plans to launch a loyalty program in the fall that it hopes will bring more shoppers through its doors.
The company said sales fell 2.8 percent at established stores during the second quarter, which was better than the 3.3 percent drop that Wall Street analysts expected, according to FactSet.
CEO Jeff Gennette cited “a notable contribution” from changes in the women’s shoes and jewelry departments.
Its overall results also topped Wall Street expectations. The Cincinnati-based company reported net income of $116 million, or 38 cents per share, in the three months ending July 29. That’s up from $11 million, or 3 cents per share, in the same period a year before.
Earnings, adjusted for non-recurring costs, came to 48 cents per share, beating the 45 cents per share analysts expected, according to Zacks Investment Research.
Revenue fell 5 percent to $5.55 billion, beating expectations of $5.5 billion, according to Zacks.
But Macy’s expects full-year earnings in the range of $2.90 to $3.15 per share, below the $3.27 per share that analysts expected, according to FactSet.
Shares of Macy’s Inc., which are down 36 percent since the beginning of the year, rose 1 percent to $23.22 before the stock market opened Thursday.
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