Cautious Consumers Cancel Macy’s Results (M, JWN, SKS, JCP, KSS, DDS)

The company leads off earnings seasons for a number of big department stores, all of which will be announcing results in the next couple of weeks. Nordstrom Inc. (NYSE: JWN) reports earnings tomorrow and is expected to post EPS of $0.75 on revenue of $2.52 billion. Kohl’s Corp. (NYSE: KSS) also reports tomorrow, and the consensus estimate for EPS is $0.61 and for revenue the estimate is $4.25 billion. Saks Inc. (NYSE: SKS) reports next Wednesday and the consensus estimates call for EPS of $0.18 on revenues of $764.4 million. J.C. Penney Co. Inc. (NYSE: JCP) also reports next Wednesday and is expected to post an EPS loss of -$0.10 on revenues of $3.48 billion. Dillard’s Inc. (NYSE: DDS) has not yet scheduled its announcement, but the estimates call for EPS of $1.67 on revenue of $1.53 billion.

Macy’s grew EPS by 43%, from $0.30 a year ago to $0.43 in the first quarter of 2012. Sales rose 4.4% year-over-year, from $5.89 billion to $6.15 billion. The consensus estimates called for EPS of $0.40 on revenue of $6.13 billion.

Where Macy’s failed to impress was its outlook for full-year EPS. The company reiterated guidance of $3.25-$3.30. The consensus estimate had been $3.41. Same-store sales in April were also a weight, rising just 1.2%, well below the consensus estimate for 1.9% growth.

Macy’s cost of sales rose slightly and margins fell slightly, from 39.1% to 38.8%. Strong sales in March due to an early Easter and warm weather did not flow into April as consumers grew more cautious about purchases.

The company’s shares are down -4.3% at $37.70 in pre-market trading this morning, within a 52-week range of $22.66-$42.17.

Paul Ausick