Macy's Earnings And Revenue Beat, But Shares Fall After Downbeat Outlook

Macy's Inc. shares fell nearly 2% in Thursday premarket trading after the retailer reaffirmed downbeat guidance for the year. Shares first rose after the retailer reported second-quarter earnings and revenue that beat expectations. Net income was $116.0 million, or 38 cents per share, up from $11.0 million, or 3 cents per share, for the same period last year. Adjusted EPS was 48 cents, beating the 46-cent FactSet consensus. Sales totaled $5.55 billion for the quarter, down from $5.87 billion and ahead of the $5.52 billion FactSet consensus. Same-store sales on an owned basis were down 2.8% for the quarter, and down 2.5% on an owned-plus-licensed basis. Macy's Chief Executive Jeff Gennette said the company saw a "notable contribution" from women's shoes and jewelry. Macy's reaffirmed its full-year guidance for same-store sales decline between 2.2% and 3.3% on an owned basis and down 2% to 3% on an owned-plus-licensed basis. Sales are expected to be down between 3.2% and 4.3% and adjusted EPS is forecast to be $2.90 to $3.15 excluding the impact of anticipated fourth-quarter gains from the sale of the San Francisco men's building and charges, premiums and fees associated with debt repurchases. The FactSet EPS consensus is $3.27 for the year. Macy's shares are down 35.7% for the year so far while the S&P 500 index is up 10.5% for the period.