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Home / Business / Macy's Earnings Crush Views, but CEO Warns of Trumpet Prices; Macy's Stock Falls | Investors Business Daily

Macy's Earnings Crush Views, but CEO Warns of Trumpet Prices; Macy's Stock Falls | Investors Business Daily



Macy's (M) beat quarterly earnings and the same sales forecasts early on Wednesday, but sales were missing, and the warehouse chain warned of the potential impact of further China tariffs President Trump has threatened. Macy's stock fell.




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Macy's Earnings

Estimates: Wall Street expects Macy's earnings per share to dive 31% to 33 cents. Revenue is expected to reach $ 5,529 billion, largely unchanged from a year ago. Consensus Metrix assumes sales with the same sales of 0.1%, which include stores that are open for over a year and online sales.

Results: EPS of 44 cents on revenue of $ 5.5 billion. Same store sales increased 0.6% on owned and 0.7% on owned plus licensed basis.

Outlook : Management supported its previous guidance. In February, Macy's 2019 EPS led to $ 3.05 – $ 3.25 on flat revenue, with complicated sales at 1%.

"Our brick & mortar sales trend improved sequentially in the first quarter, backed by Growth50 stores and Backstage. Had another quarterly double-digit growth in our digital business, and mobile continues to be our fastest growing channel," says CEO Jeff Gennette. ] But he later told analysts that Macy's forecast does not include another round of China tariffs that Trump has threatened to impose more than $ 300 billion in consumer imports.

"It's hard to find a way through what won't affect customers, "It will affect many clothing and accessory categories" among Macy's private labels and national brands.

Yet he added that the company has strategies that should ease the impact on shoppers.

Macy's Stock [19659012] Macy's stock was down 1% at 21.57 on the stock market today after it had first picked up the earnings report. Possible 99. Its EPS rating is 50, which also indicates weaker profit growth.

MarketSmith analysis shows that the relative strength of Macy's stock has also stumbled over the past several months, indicating that the stock is worse than the general S & P 500.

Among other merchants were the warehouses JCPenney (JCP) down 2.8%, Norstrom ) lost 2% and Kohls (KSS) fell 1%.

Macy's stock crumbled after third quarter results. And in January, Macy's team suffered its worst-daily losses. At that time, Macy trimmed its earnings and same store forecast for 2018 – whose results had not yet been reported – and the chain turned into disappointing sales in the same store for the crucial holiday season.

The company went better when reported results for the fourth quarter, although the profit forecast for 2019 came below expectations. Macy said that then a new restructuring plan would help save $ 100 million a year. The plan included simplifying Macy's governance structure to help the company adapt more quickly to shift consumer demands.

Stores, Tariffs

As more customers shop online and retail chains eat in sales, Macy's added its off-price Backstage retail space to dozens of new locations. The company plans to add more in the coming months.

Macy's management, in February, said the Backstage Roma did "a lot of heavy lifting" for the company. The company has also tried to focus more sales efforts on its home department and mobile shopping.

As Macy and other retailers close stores, an analyst assumes thousands more closures ahead while the US and China surround a fight against trade. 19659007] The analyst, UBS & # 39; Jay Sole, said that the tariff escalation could create "intense stock dislocations and discounting", on top of already existing retailer efforts to reduce prices to attract customers to stores.

He also said that Macy's warehouse, as well as other stores such as Kohls (KSS) and Ross Stores (ROST), could fall 40% during trade escalation .

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