Macy's (M) Lowers FY16 Guidance, Comps Decline 2.7% in Nov/Dec

Macy’s, Inc. (NYSE: M) today announced that its comparable sales on an owned plus licensed basis declined by 2.1 percent in the months of November and December 2016 combined, compared to the same period last year. On an owned basis, comparable sales declined by 2.7 percent in the combined November/December period.

“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger. We believe that our performance during the holiday season reflects the broader challenges facing much of the retail industry. We are pleased with the performance of our digital business, with double-digit gains at both macys.com and bloomingdales.com; however, store sales continued to be impacted by changing customer behavior. Our apparel business, which includes women’s, men’s and children’s, performed well, with particular strength in active and cold-weather merchandise. Sales were also strong in fine jewelry, as well as furniture and bedding, reflecting the success of our initiatives in those categories. However, ongoing weakness in handbags and watches negatively impacted our results,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer.

2016 Guidance

Macy’s, Inc. maintains its previously provided full-year sales guidance of a 2.5 percent to 3.0 percent decrease in comparable sales on an owned plus licensed basis, and expects to come in at the lower end of that guidance, with comparable sales on an owned basis to be approximately 50 basis points lower.

The company now expects full-year 2016 diluted earnings per share (excluding asset impairment, restructuring, retirement settlement and other charges) to be in a range of $2.95 to $3.10 (compared with previous guidance of $3.15 to $3.40).

(Street sees FY EPS of $3.29)

Important Information Regarding Financial Measures

Please see the last page of this news release for important information regarding the calculation of the company’s non-GAAP measures.

Fourth Quarter Earnings Announcement

Macy’s, Inc. is scheduled to report fourth quarter sales and earnings on February 21, 2017. Additional detail on financial performance will be provided at that time. The company will webcast a call with financial analysts and investors at 10 a.m. ET on February 21, 2017. Macy’s, Inc.’s webcast is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call in on 888-599-8686, passcode 4375466. A replay of the conference call can be accessed on the website or by calling 888-203-1112 about two hours after the conclusion of the call.

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