Macy's Shares Fall In Premarket After Sales Miss Expectations, Outlook Lowered

Macy's Inc. shares fell 7.5% in Wednesday premarket trading after the retailer reported first-quarter sales that missed expectations and issued a profit warning. Macy's reported net income of $115 million, or 37 cents per share, down from $193 million, or 56 cents per share, for the same period last year. Adjusted earnings were 40 cents per share, beating the FactSet consensus of 36 cents per share. Revenue for the quarter totaled $5.8 billion, down from $6.2 billion and below the $5.9 billion FactSet consensus. Same-store sales on an owned and licensed basis were down 5.6% for the quarter. The retailer expects full-year 2016 same-store sales to fall between 3% and 4%, and earnings per share in the range of $3.15 to $3.40, lowered from previous guidance of $3.80 to $3.90. Macy's raised its dividend to 37.75 cents per share from 36 cents per share. Company shares are down 44% for the past year while the S&P 500 is down 1% for the same period.