Macy’s shares jump after earnings blow past estimates
Macy’s Inc. M, +1.02% shares jumped 6.6% in Wednesday premarket trading after the department store retailer reported first-quarter profit that blew past estimates. Net income totaled $136 million, or 44 cents per share, down from $139 million, or 45 cents per share last year. The FactSet consensus was for 33 cents. Sales totaled $5.50 billion, down slightly from $5.54 billion last year and just below the $5.53 billion FactSet guidance. Same-store sales on an owned basis rose 0.6%, and on an owned-plus-licensed basis, they were up 0.7%. FactSet guidance was for a 0.6% same-store sales decline. For 2019, Macy’s expects adjusted EPS of $3.05 to $3.25, sales to be approximately flat, and same-store sales on both an owned and owned-plus-licensed basis to be flat to up 1%. FactSet is guiding for EPS of $3.10, sales of $25.09 billion, compared with $24.97 billion last year, and same-store sales growth of 0.4%. Macy’s stock has fallen nearly 27% for the year to date while the ProShares Decline of the Retail Store ETF [S: emty] is down 3% and the S&P 500 index SPX, +0.80% has gained 13.1%.
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