Macy's beats by $0.01, reports revs in-line; reaffirms FY18 guidance (23.03)
- Reports Q2 (Jul) earnings of $0.48 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.47; revenues fell 5.4% year/year to $5.55 bln vs the $5.52 bln Capital IQ Consensus.
- Comparable sales on an owned basis were down 2.8% vs. -3.3% ests... down 2.5% on an owned plus licensed basis; Inventory down 6.4%.
- Co reaffirms guidance for FY18, sees EPS of $2.90-3.15, excluding non-recurring items, vs. $3.12 Capital IQ Consensus Estimate; sees FY18 revs down 3.2-4.3% to ~$24.7-25.0 bln vs. $24.69 bln Capital IQ Consensus; comps down 2.2-3.3%.
- "We saw a notable contribution from the full execution of our new women's shoe and jewelry models and the continued successful testing of Backstage in store. We are excited about plans for fall, including the launch of a new loyalty program and the new marketing strategy, which we anticipate will further improve our sales trend in the back half of the year," said Jeff Gennette, Macy's president and chief executive officer. "We are working with a mindset of continuous improvement and will adapt our business in order to reach our goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile. Key to this strategy is engaging our customers with an improved experience that includes more elevated and exclusive assortments, a better integration of technology both online and in the store, and additional enhancements intended to drive traffic and sales. There is still work ahead of us, however, I'm encouraged by the progress we're making on overall performance."