Macy's Inc (M) Posts Earnings Beat, But Sales Continue to Fall

Macy's Beat Estimates, but Guidance Weighs on Shares

"The marketing process is well under way for the upper floors of State Street in Chicago, and we hope to have an update by when we next report earnings", Macy's Chief Financial Officer Karen Hoguet said during a call with analysts Thursday. The company reported $0.48 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $0.45 by $0.03. The company issued revenue guidance of down 3.2-4.3% to ~$24.7-25.0 billion, compared to the consensus revenue estimate of $24.69 billion.

Shares of Macy's (NYSE M) opened at 20.67 on Friday. The fund owned 262,877 shares of the company's stock after selling 255 shares during the period. The company has a 50-day moving average price of $22.91 and a 200-day moving average price of $26.93. The company has a market cap of $7.01 billion, a price-to-earnings ratio of 12.42 and a beta of 0.84. Macy's also was the recipient of unusually large options trading activity on Wednesday. Stock investors acquired 33,975 call options on the stock.

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.

Shares of Macy's rose almost 1% in premarket trading to $23.25, while Kohl's slipped 2.2% to $40.99. Despite the drop, it did still come in above analysts' revenue estimate of $5.52 billion. During the same quarter previous year, the firm posted $0.51 EPS. This is a decline from the retailer's revenue of $5.87 billion that was reported during the same time a year ago.

Looking ahead, Macy's reaffirmed its outlook for full-year adjusted earnings per share of between $3.37 and $3.62, excluding the impact of the anticipated settlement charges related to defined benefit plans and premiums and fees associated with debt repurchases.

Several research analysts have commented on M shares. Vetr lowered shares of Macy's from a "strong-buy" rating to a "buy" rating and set a $26.02 price objective for the a research report on Thursday, July 27th. Zacks Investment Research downgraded shares of Macy's from a hold rating to a sell rating in a research note on Tuesday. Gordon Haskett started coverage on Macy's in a report on Tuesday, May 9th. The company has a consensus rating of "Hold" and a consensus price target of $31.89. Following the transaction, the director now directly owns 5,968 shares of the company's stock, valued at $135,592.96. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. The shares were acquired at an average price of $22.72 per share, with a total value of $99,740.80. The disclosure for this purchase can be found here.

TRADEMARK VIOLATION WARNING: This report was posted by Week Herald and is the property of of Week Herald. The company credited its anniversary sale, which took place during the quarter, and said its own labels did well during the sale.

Want to see what other hedge funds are holding M? Winslow Evans & Crocker Inc. raised its stake in Macy's by 241.4% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 22,623 shares of the company's stock worth $526,000 after buying an additional 65 shares during the last quarter.

Kohl's saw same-store-sales fall 0.4 percent during the quarter. Everence Capital Management Inc. purchased a new stake in shares of Macy's during the first quarter worth about $254,000. Heritage Investors Management Corp raised its stake in Macy's by 0.3% in the first quarter.

To boost traffic, Macy's is revamping its beauty business, investing in Backstage, its off-price discount business, and improving its e-commerce site, while Kohl's has been adding more national brands such as Under Armour Inc to its stores.

Related News: