Macy's 2Q profit rises almost 4 percent, misses estimate

MarketsAssociated Press

Macy's Inc. (M) on Wednesday reported a 4 percent increase in earnings in its fiscal second quarter as business rebounded from slow sales earlier in the year.

But Macy's cut its outlook for a key sales measure saying it couldn't make up the sales shortfall in the first quarter.

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The Cincinnati-based company says net incomes increased to $292 million, or 80 cents per share, from $281 million, or 72 cents per share, in the same quarter a year earlier. The average estimate of analysts surveyed by Zacks Investment Research was for profit of 86 cents per share.

The company said revenue rose 3.3 percent to $6.27 billion from $6.07 billion in the same quarter a year earlier, but missed Wall Street forecasts. Analysts expected $6.29 billion, according to Zacks.

The company said that sales at stores open at least a year rose 3.4 percent.

Shares slipped more than 4 percent, or $2.46 to $57.30 in premarket trading.