Macy’s Posts Quarterly Gains, Lifts EPS Outlook

Macy’s Inc. (NYSE: M) reported second-quarter adjusted earnings per share (EPS) of $0.67 and $6.12 billion in revenue before markets opened today. EPS for the same period a year ago came to $0.55, and last year’s revenue totaled $5.94 billion. The results compare to the Thomson Reuters consensus estimates for $0.65 per share and $6.1 billion in revenue.

The company’s chairman and CEO said:

We were pleased with our spring season results, and they came on top of exceptionally strong spring season performances in each of the past two years. This indicates that our business continues to have forward momentum, even with challenges that include a soft economy, lower spending by international tourists, and temporary disruptions associated with the major remodeling of our Herald Square flagship store in New York City

Macy’s raised its full-year EPS guidance from $3.25 to $3.30 to a range of $3.30 to $3.35. The consensus estimate had called for EPS of $3.36. The forecast for full-year same-store sales remained unchanged at 3.7%.

Macy’s noted that online sales at its macys.com and bloomingdales.com websites rose 36.1% in the quarter and added 1.7% to the company’s same-store sales numbers. Same-store sales in the first half of the year are up 3.7%.

Macy’s shares are up about 3.4% in premarket trading, at $38.25. The current 52-week range is $22.66 to $42.17. Thomson Reuters had a consensus analyst price target of $42.44 before today’s results were announced.

Paul Ausick