Economy

Macy's higher into earnings

Macy's higher into earnings”

A big driver of the sales increase was a promotional event that shifted into this year's first quarter, compared with last year, when it occurred during the second quarter.

Net income totaled $139 million for the quarter, or 2.5 percent of sales, compared to $78 million, or 1.5 percent of sales, for the same quarter previous year. Excluding one-time items, it earned 48 cents per share.

Same-store sales on an owned plus licensed basis were up 4.2 percent, almost 3 percentage points higher than the Street's forecast.

Macy's said that sales were healthy at physical stores for all its main brands as well, which include Bloomingdale's and makeup and beauty chain Bluemercury in addition to Macy's.

Chief Executive Jeff Gennette said in prepared remarks that Macy's "saw continued healthy consumer spending and significant improvements in worldwide tourism".

Full-year guidance from management will be a crucial test to see if new initiatives are starting to pay off. Consensus estimates are for Macy's to guide for revenue of $24.79B and EPS of $3.59. We also saw continued healthy consumer spending and significant improvements in global tourism. "Our best customer is responding well to the improvements we've made to her experience in our stores, on.com and through the Macy's app." . Both reports took a toll on Macy's stock price. Same-store sales climbed 4.2%, almost 3% points higher than analysts' prediction. Apart From this, the company estimates that comparable sales were up 1.7 percent on an owned plus licensed basis. Morgan Stanley analysts downgraded Macy's stock last week, writing, "While Macy's has proactively closed stores, ongoing negative store-only comps lead us to question if it is closing them fast enough".

Neil Saunders, managing director of GlobalData Retail, pointed out in comments emailed to Retail Dive that Macy's in Q1 moved up its popular Friends and Family promotion (which previously came in the second quarter), and was also posting comps that compared favorably to an abysmal sales period in Q1 2017.

Macy's also ended with Chinese joint venture with Fung Retailing Limited but will remain active on Alibaba's (BABA) TMall, as well as social media channels. Its online sales increased by a double-digit percentage during the first quarter alone. BMO Capital Markets set a $38.00 price target on shares of Macy's and gave the company a buy rating in a research report on Friday, January 5th. LSV Asset Management lifted its stake in Macy's by 3.8% during the fourth quarter.

The company said it now expects adjusted profit of $3.75 to $3.95 per share for the year, up from a prior forecast of $3.55 to $3.75.

Total sales in 2018 are predicted by Macy's to climb as much as half a percent.

Full-year same-store sales on an owned-plus-licensed are expected to be up 1% to 2%.



Like this

loading...
loading...

Latest


16 May 2018
Total halts Iran's South Pars gas project over U.S. sanctions risk
The total project, which also involves China 's CNPC and Iranian company Petropars, is estimated to be around $2 billion for the first phase.

16 May 2018
Solo: A Star Wars Story, Soho Square, W1
And we get to see that relationship blossom throughout the film as the two get to know each other - at times very intimately. While Disney is delivering ambitious new additions to the property, numerous hardcore fandom seem impossible to please.

16 May 2018
Q1 Wage Growth Slumps Below Forecasts
The RBA said stricter lending criteria by banks had helped in containing the build-up of risk on household balance sheets. The Board still agrees the next move was more likely up than down, assuming the economy gathered momentum as expected.

16 May 2018
Hewlett Packard Enterprise Company (HPE) EPS Estimated At $0.31 on May, 22
A simple moving average is an indicator that calculates the average price of a security over a specified number of periods. Following the transaction, the insider now directly owns 5,665 shares in the company, valued at approximately $104,859.15.

16 May 2018
Mark Waugh calls India selfish for not playing pink-ball Test
Meanwhile, Waugh lauded Ireland for giving Pakistan a run for their money in their Test debut. Bangladesh , Ireland and India are three nations who are yet to play with a pink ball.

16 May 2018
US Steel (X) PT Lowered to $42.00
Looking at some alternate time periods, the 12 month price index is 1.7855, the 24 month is 2.58655, and the 36 month is 1.38283. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.

16 May 2018
US software company accuses Google of harvesting data
All this information it shares with the advertisers to report how online ads have helped in increasing store visits. That watch doesn't need to necessarily have cellular connectivity to make use of some of the new features either.

16 May 2018
Italy's populists stir markets with pre-euro nostalgia
The 5 Star Movement emerged as the biggest party, but was seen as unlikely to enter into alliances. What do the two parties want? Both parties have a history of Euroscepticism.

16 May 2018
BSNL introduces Rs 118 prepaid plan to counter Jio, Airtel and Idea
However, BSNL's offer can be compared with RJio's Rs 98 pack which gives 2GB data in 4G network for a period of 28 days. BSNL (Bharat Sanchar Nigam Limited) in the war tariff has once again launched a new prepaid plan of Rs 118.

16 May 2018
Jose Mourinho receives huge boost after Fred decision
United have been battling with rivals City to land the 25-year-old since before the January transfer window, but the latest reports suggest that Mourinho has come out on top in a bid to land the Brazilian.