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Macy's Gains on Strong EPS Beat as Investors Ignore Lowered Guidance

Published 23/08/2022, 13:46
© Reuters.
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By Senad Karaahmetovic

Shares of Macy’s (NYSE:M) are up almost 2% in premarket Tuesday despite the company cutting its profit and revenue guidance for the full year.

For Q2, Macy’s reported an adjusted EPS of $1.00 to beat the estimate of $0.85. Net sales came in at $5.60 billion while comparable sales fell by 1.6%.

“During the second quarter, we delivered solid results, despite the challenging environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s.

For the third quarter, the company is forecasting adjusted EPS in the range of $0.15 to $0.21, much weaker than the consensus of $0.41. Net sales are seen between $5.16 billion and $5.23 billion, better than the estimate of $5.18 billion.

For the full year, Macy’s sees an adjusted EPS between $4.00 and $4.20, down from the prior outlook that called for $4.53 to $4.95 and the estimate of $4.54. Net sales are seen between $24.34 billion and $24.58 billion, which marks a guide down but still better than the consensus of $24.35 billion.

Macy’s shares are down nearly 30% YTD.

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