Macy’s Earnings Beat Street As Comps Struggle Forward

Macy’s rebound continued into the second quarter, beating Wall Street estimates, although the retailer struggled to deliver sales growth.

The company posted net income of $166 million, or 53 cents per diluted share, versus $111 million, or 36 cents per diluted share, in the year-earlier quarter. With designated one-time charges excluded, company net income was $219 million, or 70 cents per diluted share, versus $141 million, or 46 cents per diluted share, in the quarter a year prior.

A Thomson Reuters consensus analyst estimate called for adjusted earnings per diluted share of 51 cents.

The company reported comparable sales that were flat on an owned basis and up 0.5% on owned plus licensed basis in the quarter year over year. Net sales were $5.57 billion versus $5.64 billion in the year-previous quarter, Macy’s stated. Operating income was $303 million compared to $282 million in the year-before period.

Jeff Gennette, chairman and CEO of Macy’s, said the company “delivered strong performance in the first half of the year, and we are pleased to report our third consecutive quarter of comparable sales growth. Macy’s, Bloomingdale’s and Bluemercury all performed well. It is encouraging to see the continued strengthening of our brick and mortar business where we saw trend improvements across the portfolio, led by our Growth50 stores. The combination of healthy stores, robust e-commerce and a great mobile experience is Macy’s recipe for success. We are focused on improving our customer journey every step of the way because we know that our customers expect a great experience whenever and wherever they engage with our brands. We also continue to be disciplined with inventory management, which allows us to give our customers more fashion and freshness, while increasing sales and improving gross margin.”