Macy’s Q3 earnings: ‘entering holiday period in healthy inventory position’

November 16, 2023 07:35 AM PST | By Invezz

Macy’s Q3 earnings: ‘entering holiday period in healthy inventory position’ — Image source: Invezz

Macy’s Inc raised its future outlook today

Investors are cheering also because the management raised its guidance for the full year on Thursday.

Macy’s now forecasts $2.88 to $3.13 of adjusted per-share earnings on up to $23.2 billion in sales. According to Jeff Gennette – its Chief Executive:

Looking forward, we have strong continuity with Tony Spring transitioning to CEO in February. I’m confident he’ll guide Macy’s to sustainable long-term profitable sales growth.

The retail company improved its gross margin from 38.7% to 40.3% in the recently concluded quarter. Macy’s stock is currently down about 40% versus its year-to-date high.

Breaking: Retail spending fell last month for the first time since March. Americans are pulling back just as the holiday season comes around. https://t.co/XhMKMmCcSR https://t.co/XhMKMmCcSR
— The Wall Street Journal (@WSJ) November 15, 2023

Notable figures in Macy’s Q3 earnings release

Earned $43 million versus the year-ago $108 million
Per-share earnings also declined from 39 cents to 15 cents
Adjusted EPS printed at 21 cents as per the press release
Sales tanked 7.1% year-over-year to $4.86 billion
Consensus was breakeven on $4.78 billion worth of sales

Merchandise inventories at $6.03 billion were down 5.9%. CEO Gennette added in the earnings release:

We are entering the holiday period in a healthy inventory position.

What else was noteworthy?

Other notable figures in the earnings report include a less-than-expected 7.0% hit to same-store sales. Macy’s chief executive also said today:

We have refined our gift assortment, simplified our promotions and improved our shopping experience.

Bloomingdale and Macy’s branded stores saw comparable sales slip 3.2% and 7.6%, respectively while Bluemercury’s same-store sales increased 2.5% year-on-year instead.

Earlier this week, Jefferies analyst Ashley Helgans reiterated her “buy” rating on Macy’s stock but lowered the price target to $16. That still represents about a 13% upside from here, though.

Watch here: https://www.youtube.com/embed/7wfKE1iFdtY?feature=oembed

The post Macy’s Q3 earnings: ‘entering holiday period in healthy inventory position’ appeared first on Invezz

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