Macy’s and Kohl’s released their latest earnings reports before opening bell this morning. Macy’s reported adjusted earnings of 24 cents per share on $5.34 billion in revenue, compared to the Wall Street estimates of 36 cents per share in adjusted earnings and $5.48 billion in sales. In last year’s first quarter, Macy’s reported adjusted earnings of 40 cents per share on $5.77 billion in revenue.

Kohl’s posted adjusted earnings of 39 cents per share on $3.84 billion in sales, compared to the analyst estimates of 29 cents per share and $3.91 billion in revenue. In last year’s first quarter, the retailer reported $3.97 billion in revenue and 31 cents per share in adjusted earnings.

Macy’s shares tumble

macy's kohl's earnings
By Macy’s Inc./ Fairlyoddparents1234 [Public domain], via Wikimedia Commons
Macy’s GAAP earnings per share fell to 23 cents from 37 cents per share a year ago. The retailer said the sales decline is partially result of the store closings announced last year. Comparable sales on an owned basis fell 5.2%, while on an owned plus licensed basis, comparable sales fell 4.6% in the first quarter.

Macy’s continues to expect same store sales to fell by 2.2% to 3.3% for the full year. The department store operator also still expects full-year sales to fall by 3.2% to 4.3% and full-year adjusted earnings to be between $3.37 and $3.62 per share.

Shares of Macy’s reached levels not seen since 2011 in premarket trading after this morning’s release. The stock slumped by as much as 7.5% to $27.14.

Kohl’s earnings rise

Kohl’s posted GAAP earnings of 39 cents per share, up from 9 cents per share in last year’s first quarter. Net income surged 288% to $66 million from $17 million a year ago. Same store sales fell 2.7%, which was much worse than the consensus of a 1.2% decline. However, it was an improvement from the 3.9% decline recorded in the first quarter of 2016. The retailer’s gross margin improved 83 basis points to 36.4% from 35.5% in the year-ago quarter.

“We are encouraged by the significant improvement in sales and traffic for the March and April period, after a weak February start to the first quarter,” Kohl’s Chairman, President and CEO Kevin Mansell said in a statement. Continued strong inventory management led to a major improvement in gross margin, and our teams managed expenses exceptionally well.”

Shares of Kohl’s initially ticked higher in premarket trades before turning lower and falling by as much as 3.65% to $38.85.