Macy's (M) Tops Q2 EPS by 9c, Comps Fell 2.6%; To Close 100 Stores

August 11, 2016 8:00 AM EDT

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(Updated - August 11, 2016 8:01 AM EDT)

Macy's (NYSE: M) reported Q2 EPS of $0.54, $0.09 better than the analyst estimate of $0.45. Revenue for the quarter came in at $5.87 billion versus the consensus estimate of $5.74 billion.

Comparable sales on an owned plus licensed basis were down by 2.0 percent in the second quarter. On an owned basis, second quarter comparable sales declined by 2.6 percent. The difference between the year-over-year change in total and comparable sales largely resulted from the closing of 41 underperforming Macy’s stores in fiscal 2015.

Macy's reaffirmed FY2016 guidance.

In addition, Macy's outlined a series of initiatives to drive profitable growth, enhance shareholder value and strengthen Macy’s as America’s preferred omnichannel shopping destination. As part of this strategy, the company intends to close approximately 100 Macy’s full-line stores (out of a current portfolio of 728 Macy’s stores, including 675 full-line locations). Most of these stores will close early in 2017, with the balance closing as leases and certain operating covenants expire or are amended or waived. Macy's also said it will invest in improvements in ongoing stores and digital vehicles.

For earnings history and earnings-related data on Macy's (M) click here.

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