The 10-second takeaway
For the quarter ended July 28 (Q2), Macy's met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Macy's tallied revenue of $6.12 billion. The seven analysts polled by S&P Capital IQ predicted sales of $6.12 billion on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $5.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.67. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.64 per share. GAAP EPS of $0.67 for Q2 were 22% higher than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.9%, 10 basis points better than the prior-year quarter. Operating margin was 9.1%, 60 basis points better than the prior-year quarter. Net margin was 4.6%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.04 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $27.71 billion. The average EPS estimate is $3.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 513 members out of 809 rating the stock outperform, and 296 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Macy's a green thumbs-up, and 54 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Macy's is outperform, with an average price target of $42.47.
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