Macy’s and Sodastream released their latest earnings reports before opening bell this morning. Macy’s posted adjusted earnings of 17 cents per share on $5.6 billion in sales, compared to the consensus estimates of 41 cents per share and $5.6 billion in revenue. In last year’s third quarter, the department store chain reported adjusted earnings of 56 cents per share and $5.9 billion in sales.
Sodastream reported adjusted earnings of 69 cents per share on $124.2 million in revenue, against the consensus estimates of 24 cents per share and $117 million in sales. In last year’s third quarter, the company reported earnings of 69 cents per share on $110 million in revenue.
Macy’s shares rise but not because of earnings
Macy’s GAAP earnings fell to 5 cents per share from 36 cents per share last year, mostly due to store closings. Comparable sales declined 2.7% year over year, which was a little better than the consensus of a 2.8% decline. The total decline includes a 3.3% decline for owned stores. The company said the difference in the change was due to the closing of 41 underperforming stores at the end of last year.
Macy’s also said this morning that it has formed a strategic alliance with Brookfield Asset Management to explore monetization opportunities for its real estate portfolio. Further, it has agreed to sell its Union Square Men’s building in San Francisco for $250 million and will use some of the proceeds of the sale to consolidate the Men’s store into the main store in Union Square. It will also sell its downtown Portland, Ore. store for $54 million.
The department store chain reaffirmed its full-year guidance for adjusted earnings of $3.15 to $3.40 per share. It also raised its full-year comparable sales guide to a decline of 2.5% to 3% from the previous expectation for a 3% to 4% decline.
Shares of Macy’s popped in premarket trading before pulling back, probably due to the wide earnings miss. However, investors are clearly weighing the earnings report with the real estate announcement. After rising by more than 2%, Macy’s stock reversed course and was bouncing around within 1% in either direction in the $38 per share range.
Sodastream shares soar on strong earnings beat
Sodastream’s EBITDA skyrocketed 140.6% to $23.3 million, compared to $9.7 million in last year’s third quarter. Net income rose 217.4% to $14.9 million from $4.7 million last year.
Western Europe sales continued to be the company’s best-performing region with $68.5 million in sales. The Americas recorded $26.2 million in revenue, while Asia-Pacific revenue rose to $9 million and Central and Eastern Europe, Middle East, and Africa sales rose to $6.3 million. Sales of sparkling water maker starter kits surged 33% to $34.2 million, while consumables sales rose 4% to $73.9 million.
Shares of Sodastream skyrocketed in premarket trades, climbing by as much as 12.02% to $31.50. The shares are on track to open at their highest level in two years.