Macy's Shares Sink After Earnings Miss

Macy's Inc. shares sank nearly 10% in Thursday premarket trading reaching the lowest point seen during regular hours since 2011 after the retailer reported first-quarter earnings and sales that missed expectations. Net income was $71.0 million, or 23 cents per share, down from $116.0 million, or 37 cents per share, for the prior year. Adjusted EPS was 24 cents, below the 36-cent FactSet consensus. Sales were $5.3 billion, down from $5.8 billion last year and below the $5.5 billion FactSet consensus. Macy's said store closures are partly to blame for the sales decline. Same-store sales on an owned basis were down 5.2%, and on an owned-plus-licensed basis same-store sales fell 4.6%. Macy's reaffirmed its full-year 2017 guidance, forecasting a same-store sales decline between 2.2% and 3.3% on an owned basis, and a decline between 2% and 3% on an owned-plus-licensed basis. Sales are expected to fall between 3.2% and 4.3%. Adjusted EPS is expected to be $3.37 and $3.62. The FactSet consensus is for full-year sales of $24.81 billion, down from $25.78 billion, and adjusted EPS of $3.34. Macy's shares are down more than 18% for the year to date while the S&P 500 index is up 7.2% for the period.