Macy's exceeded earnings expectations in Q2 2024 despite revenue decrease, positive growth in comparable sales.

From Nasdaq: 2024-08-21 13:00:00

Macy’s, Inc. (NYSE: M) faces challenges in the retail sector due to economic headwinds and shifting consumer preferences. Despite a 3.8% decrease in revenue in Q2 2024, Macy’s exceeded earnings expectations with an adjusted EPS of $0.53. Comparable sales were mixed, with declines at Macy’s and Bloomingdale’s but growth at Bluemercury.

Macy’s focused on renovating top-performing stores and saw positive growth in comparable sales. Revenue streams outside of comparable sales contributed $159 million, showing positive trends. Gross margin expanded to 40.5%, attributed to disciplined practices, reduced inventory shrinkage, and cost accounting transition.

Macy’s adjusted its full-year 2024 guidance, expecting net sales of $22.1 billion to $22.4 billion and a decline in comparable sales. Despite challenges, the company reaffirmed its EPS guidance of $2.55 to $2.90, aiming for sustainable growth in a difficult economic period. Analysts provide mixed outlooks, with a consensus rating of “Hold” and an average price target of $18.10.



Read more at Nasdaq:: Macy’s Exhibits Resilience in a Demanding Retail Environment