Macy's Stock Falls After Profit And Sales Miss Expectations

Macy's Inc.'s stock slumped 1.8% in premarket trade Wednesday, after the retailer reported fiscal second-quarter profit and sales that missed expectations. For the quarter ending Aug. 1, earnings fell to $217 million, or 64 cents a share, from $292 million, or 80 cents a share, in the same period a year ago. That missed the FactSet earnings-per-share consensus of 76 cents. Sales fell 2.6% to $6.1 billion, below the FactSet consensus of $6.22 billion, as same-store sales on an owned plus licensed basis declined 1.5%. On an owned basis, same-store sales fell 2.1%. The FactSet consensus was for a same-store sales decline of 0.2%. The company now expects full-year 2015 same-store sales to be in line with last year, compared with its previous expectation of about 2% growth. "We are disappointed in our second quarter results, which were impacted by a variety of factors, both internal to the company and in the macroeconomic environment," said Chief Executive Terry Lundgren. Separately, Macy's announced sales growth initiatives, including beginning e-commerce sales in China and plans to redevelop its Brooklyn space. The stock has gained 2.7% year to date through Tuesday, while the S&P 500 had gained 1.2%.