Macy’s beat analyst estimates, and asserted that it was making progress on its performance, although sales and comps continued to decline in the second quarter.
For the second quarter ended July 29, Macy’s posted company earnings of $116 million, or 38 cents per diluted share, versus $11 million, or three cents per diluted share, in the year-earlier period. Adjusted earnings per diluted share, excluding one-time charges, were 48 cents versus 54 cents in the 2016 quarter.
Macy’s adjusted earnings per diluted share topped a MarketBeat analyst average estimate of 44 cents.
Comparable sales in company-owned stores slipped 2.8%, while those on an owned-plus-licensed basis declined 2.5% versus the previous second quarter. Net sales in the quarter were $5.55 billion compared with $5.87 billion in the prior-year period. Macy’s maintained that the sales slide reflected not only the comp decline but also the effect of previously announced store closures. Operating income was $254 million versus $117 million in last year’s second quarter.
“Macy’s, Inc.’s results for the second quarter were in line with our expectations, and we are on track to meet 2017 sales and earnings guidance,” said Jeff Gennette, Macy’s president and CEO. “We saw a notable contribution from the full execution of our new women’s shoe and jewelry models, and the continued successful testing of Backstage in store. We are excited about plans for fall, including the launch of a new loyalty program and the new marketing strategy, which we anticipate will further improve our sales trend in the back half of the year. We are working with a mindset of continuous improvement and will adapt our business in order to reach our goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile. Key to this strategy is engaging our customers with an improved experience that includes more elevated and exclusive assortments, a better integration of technology both online and in the store, and additional enhancements intended to drive traffic and sales. There is still work ahead of us, however, I’m encouraged by the progress we’re making on overall performance.”
