Earnings

Macy’s slashes its full-year outlook even as earnings beat

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The Macy’s company signage is seen at the Herald Square store on March 02, 2023 in New York City. 
Michael M. Santiago | Getty Images

Macy’s on Thursday beat Wall Street’s earnings expectations, but cut its full-year guidance after discretionary sales weakened significantly in March.

The department store operator, which includes its namesake brand, Bloomingdale’s and beauty chain Bluemercury, said it now expects sales of $22.8 billion to $23.2 billion for the year, down from a previous range of $23.7 billion to $24.2 billion. Macy’s anticipates comparable owned-plus-licensed sales will fall 6% to 7.5% during the period, worse than its previous outlook of a 2% to 4% decline.

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For the year, it expects adjusted earnings per share of $2.70 to $3.20 — a major reduction from the previous $3.67 to $4.11 a share guidance.

Here’s how Macy’s did for the three-month period that ended TK compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: 56 cents adjusted vs. 45 cents expected
  • Revenue: $4.98 billion vs. $5.04 billion expected

Net income for Macy’s was $155 million, or 56 cents per share, compared with $286 million, or 98 cents per share, a year earlier.

Revenue fell about 7% to $4.98 billion from $5.35 billion in the year-ago period. Sales missed analysts’ forecast.

Shares of Macy’s closed Wednesday at $13.59, bringing the company’s market value to $3.69 billion. So far this year, the company’s stock is down 34%. That lags behind the nearly 9% gains of the S&P 500 and approximately 6% loss of the retail-focused XRT during the same period.

This is breaking news. Please check back for updates.

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