Macy's (M) Misses Q2 EPS by 17c, Lowers FY EPS Guidance

Macy's (NYSE: M) reported Q2 EPS of $0.28, $0.17 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $5.5 billion versus the consensus estimate of $5.55 billion.

• Comparable sales growth of 0.2% on an owned basis; 0.3% on an owned plus licensed basis

“Macy’s, Inc. delivered another quarter of comparable sales growth. That said, we had a slow start to the quarter and finished below our expectations. Rising inventory levels became a challenge based on a combination of factors: a fashion miss in our key women’s sportswear private brands, slow sell-through of warm weather apparel and the accelerated decline in international tourism. We took markdowns to clear the excess Spring inventory and are entering the Fall season with the right inventory to meet anticipated customer demand,” said Jeff Gennette, Macy’s, Inc. chairman & chief executive officer. “While we had seasonal inventory challenges in Spring, there are many areas of the business that are performing well, notably our Destination Businesses. We continue to see healthier sales within our brick and mortar business, led by our Growth50 stores and Backstage expansion. Our digital business posted its fortieth consecutive quarter of double-digit growth, and mobile remained our fastest growing channel.”

“Our 2019 strategic initiatives are on track to contribute to sales growth in the back half of the year, and we have plans to drive productivity and improve gross margins,” Gennette added. “Our team has responded quickly to the external environment, course corrected when needed and we remain confident. Our 130,000 colleagues compete every day to win our customers’ business.”

GUIDANCE:

Macy's sees FY2019 EPS of $2.85-$3.05, versus the consensus of $3.07.

Macy's, Inc. is reaffirming its previously provided annual sales guidance for 2019. Based primarily on its second quarter of 2019 performance, the company is lowering its guidance for Diluted EPS, excluding settlement charges, impairment and other costs, by 20 cents.

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

You May Also Be Interested In

• Amphenol (APH) Tops Q1 EPS by 7c, offers guidance
• AT&T (T) beats earnings estimates in Q1 but revenue falls short, shares climb
• Bok Financial Corp (BOKF) Misses Q1 EPS by 27c