Macy’s reports Q2 earnings of 38 cents per share

Macy's second quarter earnings per diluted share were 38 cents or 48 cents per share excluding non-cash retirement plan settlement charges and net premiums and fees associated with debt repurchases. This the company said, compares with 3 cents per share in the second quarter of 2016 or 54 cents excluding asset impairment and other charges primarily related to store closings and non-cash settlement charges. Sales in the quarter of 5.552 billion dollars, decreased 5.4 percent, while comparable sales on an owned basis were down 2.8 percent and down 2.5 percent on an owned plus licensed basis.

"Macy's results for the second quarter were in line with our expectations, and we are on track to meet 2017 sales and earnings guidance. 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," said Jeff Gennette, Macy's President and CEO in a media release.

Macy’s reports improved earnings in the first half

Macy's, Inc.'s earnings per diluted share in the first half of 2017 were 61 cents, or 71 cents excluding non-cash settlement charges and net premiums and fees associated with debt repurchases, compared with 41 cents per share, or 94 cents excluding asset impairment and other charges primarily related to store closings and non-cash settlement charges, in the first half of 2016.

Year to date, Macy's sales totalled 10.890 billion dollars, down 6.4 percent, while comparable sales on an owned basis were down 4 percent in the first half of 2017 and down 3.6 percent on an owned plus licensed basis.

Operating income totalled 254 million dollars or 4.6 percent of sales for the second quarter compared to 117 million dollars or 2 percent of sales for the second quarter of 2016. Excluding non-cash settlement charges of 51 million, operating income totalled 305 million dollars or 5.5 percent of sales. For the first half, Macy's operating income totalled 474 million dollars or 4.4 percent of sales compared to 393 million dollars or 3.4 percent of sales for the first half of 2016. Excluding non-cash settlement charges of 51 million dollars, operating income totalled 525 million dollars or 4.8 percent of sales.

In the second quarter, the company opened 16 new freestanding Bluemercury beauty specialty stores and 12 new Macy's Backstage off-price stores within existing Macy's stores. As previously announced, the company closed two Macy's stores in Temple, TX, and Dublin, OH, in the quarter. Subsequent to the end of the second quarter, the company announced that it will close the Macy's store at Magic Valley Mall in Twin Falls, ID, in early 2018.

Macy’s reaffirms FY17 sales and earnings guidance

Macy's expects comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2 percent and 3 percent. Total sales are expected to be down between 3.2 percent and 4.3 percent in fiscal 2017.

Adjusted earnings per diluted share of between 3.37 dollars and 3.62 dollars are expected in 2017, excluding the impact of the anticipated settlement charges and net premiums and fees associated with debt repurchases. Excluding the impact of the anticipated fourth quarter gain on the sale of the Union Square Men's building in San Francisco and the anticipated settlement charges and net premiums and fees associated with debt repurchases, adjusted earnings per diluted share of 2.90 dollars to 3.15 dollars are expected in 2017.

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