Macy’s sales slide in Q2
However, the retailers’ net sales in the half were US$11.112 billion, an increase of 1.1 percent from compared to the first half of 2017, and earnings and sales outperformed analyst expectations.
Net income attributable to Macy shareholders for Q2 2018 was US$166 million, or 3 per cent of sales, compared to US$111 million, or 2 percent of sales, in the same quarter last year.
Excluding impairment and other costs, settlement charges and losses on the early retirement of debt, net income for the second quarter of 2018 totaled US$219 million, or 3.9 per cent of sales.
Net income was US$306 million, or 2.8 per cent of sales, in the first half of 2018, compared to US$189 million, or 1.7 per cent of sales for the first half of 2017.
Excluding impairment and other costs, settlement charges and losses on the early retirement of debt, net income for the first half of 2018 totaled US$369 million, or 3.3 per cent of sales.
Macy’s raised its guidance for fiscal 2018. It now expects total sales to range from flat to 0.7 per cent increase, with comparable sales on an owned plus licensed basis expected to grow between 2.1 and 2.5 per cent for the year.
Comparable sales on an owned basis are expected to be 20-30 basis points below comparable sales on an owned plus licensed basis in fiscal 2018, which is consistent with earlier guidance.
Despite this, the retailer’s shares were nearly 10 per cent down at close of trade on Wednesday.
Macy’s chairman and CEO Jeff Gennette said it was a strong half for the department store chain.
“Macy’s Inc. delivered strong performance in the first half of the year, and we are pleased to report out third consecutive quarter of comparable sales growth,” he said.
“Macy’s, Bloomingdale’s and Bluemercury all performed well. It is encouraging to see the continued strengthening of our brick & mortar business where we saw trend improvements across the portfolio.
“The combination of healthy stores, robust e-commerce and a great mobile experience is Macy’s recipe for success.”