Macy’s Q2 2017 earnings were released before opening bell this morning. The department store operator reported adjusted earnings of 48 cents per share on $5.55 billion in sales, while the consensus stood at 46 cents per share and $5.52 billion in revenue. In last year’s second quarter, Macy’s reported $5.87 billion in sales and adjusted earnings of 54 cents per share.

Macy's Q2 2017 earnings
By Macy’s Inc./ Fairlyoddparents1234 [Public domain], via Wikimedia Commons

Macy’s Q2 2017 earnings

On a reported basis, Macy’s Q2 2017 earnings per share rose to 38 cents from 3 cents per share in the year-ago quarter. Same store sales fell 2.8% on an owned basis and 2.5% on an owned plus licensed basis. The consensus was expecting a 3.3% decline in same store sales. Macy’s said part of the year-over-year decline in revenue is due to store closures.

“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,” Macy’s President and CEO Jeff Gennette said in a statement. “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.”

Macy’s releases weak outlook

Macy’s affirmed its guidance for a 2.2% to 3.3% decline in same store sales on an owned basis for the full year. The department store operator also affirmed its full-year outlook for sales to be down by 3.2% to 4.3%. Macy’s added that its total sales estimates for this year include 53 weeks, while comparable sales estimates are on a 52-week basis.

The company now expects full-year earnings to be between $3.37 and $3.62 per share on an adjusted basis. Excluding impacts from the expected fourth-quarter gains from the sale of its Union Square Men’s building in San Francisco and other charges and fees, the company expects adjusted earnings to be between $2.90 and $3.15 per share. The consensus is at $3.27 per share.

After Macy’s Q2 2017 earnings were released, the company’s stock initially surged, climbing by as much as 6% in premarket trades, but then it reversed course and declined by more than 1% ahead of the bell.