Messi It beat Wall Street earnings expectations on Thursday, but cut its guidance for the full year after discretionary sales weakened significantly in March.
Shares fell as much as 10% in pre-market trading.
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The department store operator, which includes its namesake brand, Bloomingdale’s and cosmetics chain Bloomercury, 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 expects owned and licensed comparable sales to decline 6% to 7.5% during the period, worse than its previous forecast of a 2% to 4% decline.
For the year, you expect adjusted earnings per share of $2.70 to $3.20 — down significantly from $3.67 to $4.11 for guidance per share.
Macy’s signs are seen at the Herald Square store on March 2, 2023 in New York City.
Michael M. Santiago | Getty Images
In a statement, CEO Jeff Genette said “demand trends are weakening” for discretionary items beginning in March. He added that the guidance “reflects the incremental reductions in customs clearance to address the surplus of spring seasonal merchandise in the second quarter, along with adjustments to category composition and inventory levels in the second half of the year.”
Here’s what Macy’s did for the three-month period that ended April 29 compared to what Wall Street was expecting, based on a Refinitiv survey of analysts:
- Earnings per share: 56 cents adjusted For an expected 45 cents
- he won: $4.98 billion versus the expected $5.04 billion
Macy’s net income was $155 million, or 56 cents per share, compared to $286 million, or 98 cents per share, a year ago.
Revenue fell about 7% to $4.98 billion from $5.35 billion in the same period last year. Sales missed analysts’ expectations.
Comparable sales on an owned and licensed basis fell 7.2% for the quarter, worse than the 4.7% decline expected by analysts surveyed by Refinitiv.
Macy’s shares closed Wednesday at $13.59, bringing the company’s market capitalization to $3.69 billion. So far this year, the company’s stock is down 34%. This trails a nearly 9% gain for the S&P 500 and nearly a 6% loss for retail-focused XRT over the same period.
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