Macy’s earnings top forecasts as promotions attract shoppers
Bloomberg
Macy’s Inc. profit beat analyst expectations as markdowns attracted bargain-hunting shoppers who are pulling back on purchases after a pandemic shopping boom.
While US shoppers are still spending at stores like Walmart Inc. for necessities, as well as on travel and entertainment, outlays on apparel and accessories have fallen from record highs during the pandemic.
Promotions were “surgically implemented” to clear seasonal items, Macy’s chief executive officer Jeff Gennette
Adjusted earnings per share were 26 cents, compared with the average analyst estimate of 13 cents. Gross margin of 38.1%, meanwhile, weakened from the prior quarter due to heightened levels of clearance markdowns, the company said.
Second-quarter comparable sales topped the average analyst estimate, though were down from a year ago.
The shares were little changed in early trading in New York. The stock has tumbled more than 28% for the year to date as of Monday’s close.
Same-store sales at the Macy’s namesake brand were down 9.2% on an owned basis, while the higher-end Bloomingdale’s fell 2.7% and Bluemercury rose 5.8%.
Prior to the earnings report, analysts at Goldman Sachs
Results this month from luxury retail companies Tapestry
