- Macy’s lowered its full-year earnings and sales outlook.
- The department store operator beat first-quarter revenue estimates but missed revenue.
- Shares fell more than 10% in premarket trading.
Macy’s beat Wall Street’s earnings expectations on Thursday but cut its full-year guidance after discretionary sales weakened significantly in March.
Shares fell as much as 10% in premarket trading.
The department store operator, which includes its namesake brand Bloomingdale’s and beauty chain Bloomercury, now expects sales of $22.8 billion to $23.2 billion, down from a previous range of $23.7 billion to $24.2 billion. Macy’s expects comparable owned-plus-licensed sales to fall 6% to 7.5%, worse than its previous outlook of a 2% to 4% decline.
For the year, it expects adjusted earnings of $2.70 to $3.20 per share — a big reduction from the previous $3.67 to $4.11 per share guidance.
The Macy’s logo is seen at the Herald Square store in New York City on March 02, 2023.
Michael M. Santiago | Good pictures
In a statement, CEO Jeff Gennett said “demand trends have weakened” for preferred products starting in March. He said the guidance “reflects incremental clearance markdowns to address excess spring inventory in the second quarter, along with adjustments to category structure and inventory levels later in the year.”
Here’s how Macy’s did for the three months ended April 29, compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
- Stock Gains: 56 cents adjusted vs. 45 cents expected
- Revenue: $4.98 billion and expected $5.04 billion
Macy’s net income was $155 million, or 56 cents per share, compared with $286 million, or 98 cents per share, a year earlier.
Revenue fell 7% to $4.98 billion, compared to $5.35 billion in the year-ago period. Sales missed analysts’ forecasts.
Comparable sales on an owned-plus-license basis fell 7.2% in the quarter, compared with the 4.7% decline expected by analysts surveyed by Refinitiv.
Shares of Macy’s closed at $13.59 on Wednesday, bringing the company’s market value to $3.69 billion. The company’s stock has fallen 34% so far this year. That trailed the S&P 500’s roughly 9% gains and the retail-focused XRT’s roughly 6% loss over the same period.
This is breaking news. Check back for updates.
“Friend of animals everywhere. Devoted analyst. Total alcohol scholar. Infuriatingly humble food trailblazer.”