Categories AlphaGraphs, Earnings, LATEST, Retail

Macy’s stock drops despite earnings beat

Macy’s Inc. (M) beat analyst expectations on sales and earnings numbers for the second quarter of 2018, despite sales seeing a slight decline from the prior-year period. The company also raised its earnings outlook for the full year of 2018. The stock, however, dropped 5% in premarket trade.

The retailer reported net sales of $5.57 billion for Q2 2018, down 1.1% from the same period last year. Comparable sales on an owned basis were flat – while, on an owned plus licensed basis, they were up 0.5%. Comp sales on an owned plus licensed basis beat market estimates.

Net income attributable to shareholders was $166 million or $0.53 per share compared to $111 million or $0.36 per share last year. Adjusted net income was $185 million or $0.59 per share.

Macy's second quarter 2018 earnings
Macy’s Q2 2018 Earnings Infographic

Macy’s revised its guidance for full-year 2018. The company now expects adjusted diluted EPS to be $3.95 to $4.15. Total sales growth is expected to range from flat to a 0.7% increase. Comparable sales on an owned plus licensed basis are expected to increase between 2.1% to 2.5%. Comp sales on an owned basis are expected to be 20 basis points to 30 basis points below comp sales on an owned plus licensed basis.

Macy’s saw strength across all its operating divisions – Macy’s, Bloomingdale’s and Bluemercury. The company’s brick & mortar business along with its online business performed well during the quarter, helped by the strategic initiatives it has been undertaking over the past couple of months. Despite this, sales are still seeing pressure from shifts in consumer trends and Amazon’s strong e-commerce presence.

Related: Macy’s Q2 2018 Earnings Transcript

Related: Earnings Preview: Will Macy’s continue its mojo?

Related: Macy’s Q1 2018 Earnings Infographic

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Macy’s stock drops despite earnings beat

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top