Macy’s Inc. (NYSE: M) reported its fiscal first-quarter financial results before the markets opened on Thursday. The retailer said that it had $0.24 in earnings per share (EPS) and $5.34 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.34 in EPS and revenue of $5.47 billion. The same period from last year had $0.40 in EPS and $5.77 billion in revenue.
Comparable sales on an owned basis were down 5.2% in the first quarter and down 4.6% on an owned plus licensed basis.
During the first quarter, the company opened new Macy’s stores in Murray, Utah, and Los Angeles, as well as 10 new freestanding Bluemercury beauty specialty stores and 11 new Macy’s Backstage stores.
In terms of guidance for the 2017 full year, the company expects to see comparable sales on an owned plus licensed basis to decline between 2.0% and 3.0%. At the same time, total sales are expected to be down between 3.2% and 4.3%.
The consensus estimates for the 2017 full year are $3.45 in EPS and $24.8 billion in revenue.
On the books, Macy’s cash and cash equivalents totaled $1.2 billion at the end of the quarter, up from $734 million in the first quarter of last year.
Jeff Gennette, president and CEO of Macy’s, commented:
Our first quarter sales and earnings results were consistent with our expectations, and we remain on track to meet our 2017 guidance. We are encouraged by the performance of the pilot programs we tested last year in categories like women’s shoes, fine jewelry, and furniture and mattresses. We look forward to expanding these successful initiatives nationally this year and anticipate they will have a measurable impact on our performance starting in the second quarter, building through the fall. Additionally, our digital platforms showed continued strong growth in the first quarter. In 2017, we are focused on taking actions to stabilize our brick and mortar business, including the testing and iteration of additional pilot programs in order to bring them to scale in future years. At the same time, we will invest to aggressively grow our digital and mobile business, while continuing the integration of our online and offline experience to allow our customers to shop the way they live.
Shares of Macy’s closed Wednesday at $29.34, with a consensus analyst price target of $34.21 and a 52-week trading range of $27.72 to $45.41. Following the release of the earnings report, the stock was down 10% at $26.40 in early trading indications Thursday.
It’s Your Money, Your Future—Own It (sponsor)
Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.
If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.