Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Macy's Earnings Grow, Miss Expectations

Shares of Cincinnati-based Macy's (NYSE: M  ) were off more than 4% in early Wednesday trading following an earnings release this morning that showed the department store owner earning $0.72 per diluted share and profits missing analyst targets by $0.06 per share.

Despite the miss, Macy's Q2 earnings represented 7.5% growth over last year's Q2. Q2 sales however, at $6.1 billion, declined a fraction of a percent. Gross margins slipped 10 basis points to 41.8%; operating profit margins shed 30 basis points, falling to 8.8%.

Macy's CEO Terry Lundgren lamented the Q2 performance as "softer than anticipated," and said in the company press release that he was disappointed with the results. However, Lundgren also noted that "on the positive side, we have seen a strengthening of the sales trend in key elements of women's ready-to-wear, a category which has lagged over the past couple of years. Bloomingdale's sales rebounded in the second quarter, and we are encouraged by our recent momentum."

Going forward, Macy's is predicting its same-store sales (comps) will grow between 2.5% and 4% in the second half of 2013. Full-year comps growth should exceed 2%. Full-year earnings are now estimated to be between $3.80 and $3.90 per diluted share -- $0.05 to $0.10 less than previously expected.

Macy's, which operates its namesake stores and Bloomingdales, is seen as a barometer of spending among middle- to upper-income shoppers. Macy's today said it was encouraged by its early read on the back-to-school season and said that it has been marking down prices after a cool spring and that shoppers are responding positively.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2595167, ~/Articles/ArticleHandler.aspx, 8/30/2016 5:38:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,502.99 107.59 0.58%
S&P 500 2,180.38 11.34 0.52%
NASD 5,232.33 13.41 0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/29/2016 4:00 PM
M $38.69 Up +0.13 +0.34%
Macy's CAPS Rating: **