Macy's Q2 2024 earnings below expectations, lowered sales forecast, shares drop 8% premarket

From CNBC: 2024-08-21 07:10:58

Macy’s revised its full-year sales forecast downward due to selective shoppers and increased promotions. The retailer topped earnings expectations but missed revenue predictions. It now expects net sales between $22.1 billion and $22.4 billion, lower than the previous range. Shares fell 8% in premarket trading after the announcement.

Despite efforts to close 150 underperforming stores, invest in remaining locations, and open new stores, Macy’s struggled in the recent quarter. Net sales dropped from the year-ago period, with the Macy’s brand performing the worst. Bloomingdale’s saw a decline in sales, while Bluemercury experienced growth in comparable sales.

Macy’s reported a net income of $150 million in the quarter, a significant improvement from the year before. While some stores have shown positive comparable sales, overall performance was lackluster. Efforts to turn the business around are ongoing, despite challenges from a difficult sales environment and prior attempts to take the company private.

Amid plans to restructure, Macy’s board ended negotiations with an activist group looking to privatize the company. Shares closed at $17.74, with a market cap of $4.9 billion. The stock has decreased by about 12% this year, trailing behind the S&P 500. Stay tuned for further updates on this developing story.



Read more at CNBC:: Macy’s (M) Q2 2024 earnings