Macy’s slashes its full-year outlook even as earnings beat

Finance

In this article

The Macy’s company signage is seen at the Herald Square store on March 02, 2023 in New York City. 
Michael M. Santiago | Getty Images

Macy’s on Thursday beat Wall Street’s earnings expectations, but cut its full-year guidance after discretionary sales weakened significantly in March.

The department store operator, which includes its namesake brand, Bloomingdale’s and beauty chain Bluemercury, said it now expects sales of $22.8 billion to $23.2 billion for the year, down from a previous range of $23.7 billion to $24.2 billion. Macy’s anticipates comparable owned-plus-licensed sales will fall 6% to 7.5% during the period, worse than its previous outlook of a 2% to 4% decline.

For the year, it expects adjusted earnings per share of $2.70 to $3.20 — a major reduction from the previous $3.67 to $4.11 a share guidance.

Here’s how Macy’s did for the three-month period that ended TK compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: 56 cents adjusted vs. 45 cents expected
  • Revenue: $4.98 billion vs. $5.04 billion expected

Net income for Macy’s was $155 million, or 56 cents per share, compared with $286 million, or 98 cents per share, a year earlier.

Revenue fell about 7% to $4.98 billion from $5.35 billion in the year-ago period. Sales missed analysts’ forecast.

Shares of Macy’s closed Wednesday at $13.59, bringing the company’s market value to $3.69 billion. So far this year, the company’s stock is down 34%. That lags behind the nearly 9% gains of the S&P 500 and approximately 6% loss of the retail-focused XRT during the same period.

This is breaking news. Please check back for updates.

Articles You May Like

Euro Gains as Inflation Data Strengthens Hawkish Case for ECB
We’re hiking our GEHC price target, looking beyond a mixed quarter to next year’s catalysts
NASDAQ index pushes for a record close (again)
Standard Chartered lifts income guidance again after beating third-quarter profit forecasts
Aussie Struggles Persist as Disinflation Raises Rate Cut Prospects

Leave a Reply

Your email address will not be published. Required fields are marked *