Macy's beats by $0.02, misses on revs; lowers FY17 EPS and sales guidance; raises quarterly dividend 4.9% to $0.3775
- Reports Q1 (Apr) earnings of $0.40 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.38; revenues fell 7.4% year/year to $5.77 bln vs the $5.94 bln Capital IQ Consensus. The year-over-year decline in total sales reflects, in part, the 41 stores closed in 2015.
- Comparable sales on an owned plus licensed basis were down by 5.6 percent in the first quarter. On an owned basis, first quarter comparable sales declined by 6.1 percent.
- Co issues downside guidance for FY17, sees EPS of $3.15-3.40 vs. $3.78 Capital IQ Consensus Estimate; sees FY17 revs of below down 2% to ~$26.54 bln vs. $26.51 bln Capital IQ Consensus Estimate.
- Noting that the uncertain direction of consumer spending makes predictions of future performance difficult, Macy's, Inc. now expects full-year 2016 comparable sales on an owned plus licensed basis to decrease in the range of 3-4%, with comparable sales on an owned basis to be ~50 basis points lower. This compares with previous guidance for comparable sales on an owned plus licensed basis to decline by approximately 1 percent in fiscal 2016.
- "We are seeing continued weakness in consumer spending levels for apparel and related categories. In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook. Headwinds also are coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets where Macy's and Bloomingdale's are key destinations, as well as a slowdown in some center core categories -- further intensifying the challenges associated with growing topline sales revenue."
- Macy's, Inc.'s board of directors has authorized an increase in the quarterly dividend on Macy's common stock to 37.75 cents per share from the current 36 cents per share.
- Related stocks to watch: Upcoming department store earnings releases include Kohl's (KSS) reports earnings May 12 before the open, Nordstrom (JWN) May 12 after the close, JC Penney (JCP) May 13 before the open, Sears (SHLD) early June.