Macy’s, Inc. NYSE:M released its latest earnings report before opening bell this morning, posting earnings of 80 cents per share—an 11% increase year over year—on $6.27 billion in revenue, a 3.3% year over year increase. Analysts had been expecting earnings of 8 cents per share on $6.3 billion in revenue. In the same quarter a year ago, Macy’s reported earnings of 72 cents per share on $6.06 billion in revenue.
Breaking down Macy’s earnings results
Comparable store sales combined with comparable sales of departments licensed to third parties rose 4% year over year. Comparable sales rose 3.4% year over year. So far this year, Macy’s reports $12.546 billion in sales, a .7% increase. Comparable store sales with comparable sales of departments licensed to third parties rose 1.5%. Comparable sales so far this year rose .8%.
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“Our sales trend improved at both Macy’s, Inc. NYSE:M and Bloomingdale’s in the second quarter, reflecting a rebound in shopping activity once weather patterns normalized,” Macy’s Chairman and CEO Terry Lundgren in a statement. “We also benefitted from a shift in a major Macy’s promotional event into the first two days of the quarter. Advancements in our M.O.M. strategies – My Macy’s localization, Omnichannel integration and Magic Selling customer engagement – continued to drive sales growth across the country.”
During the second quarter, the department store chain bought back 8.9 million common shares for a total price of about $517 million. This year to date, Macy’s, Inc. NYSE:M bought back about 16.3 million common shares .
Macy’s cuts sales guidance
Macy’s, Inc. NYSE:M said that its expectations for the second half of this year are still on track. The company reiterated its guidance for 2% to 3% comparable store growth. However, management reports that even though sales trends improved during the second quarter, it wasn’t enough to make up for the shortfall in the previous quarter. As a result, guidance for the full year is for a 1.5% to 2% increase in comparable sales. The company’s previous guidance was for full year comparable sales to rise by between 2.5% and 3%. Macy’s still expects earnings of between $4.40 and $4.50 per share for the full year.