Macy’s, Inc. (NYSE:M) released its latest earnings report before opening bell this morning, posting earnings of 61 cents per share, an improvement of 30%, on $6.2 billion in sales, a 1.3% decline year over year. Analysts had been looking for earnings of 50 cents per share on $6.34 billion in revenue for the third quarter. In the same quarter last year, Macy’s earned 47 cents per share on $6.28 billion in revenue.
Key metrics from Macy’s earnings report
Same store sales fell by .7% year over year, compared to Wall Street’s expectations of 1.3% growth. Comparable sales excluding licensed businesses fell 1.4% year over year. During the third quarter, Macy’s opened three new stores and closed two. The retail chain also consolidated three stores into one in the Torrance, Calif. market.
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Operating income was $422 million or 6.8% of sales, compared to $360 million or 5.57% of sales in last year’s third quarter. Net cash from operations was $7
Macy’s lowers guidance
The department store chain also cut its full year earnings per share guidance. The previously provided outlook was between $4.40 and $4.50 per share. The new guidance is for between $4.25 and $4.35 per share.
The company expects full year comparable sales with comparable sales of departments licensed to third parties to rise by between 1.2% and 1.5%. Excluding licensed businesses, Macy’ expects a .7% to 1% increase. The previous guidance was for growth of between 2% and 2.5% in comparable sales and growth of between 1.5% and 2% excluding comparable sales of departments licensed to third parties. For the fourth quarter, the retail chain expects comparable sales to grow by between 2% and 3% and comparable sales excluding sales of licensed departments to grow by between 1.8% and 2.8%.
Macy’s repurchased about 9 million shares for about $534 million during the third quarter. So far this year, the company repurchased about 25.3 million shares for about $1.48 billion. As of Nov. 1, Macy’s had about $1.45 billion in repurchase authorization left on its current program.