The department store company is now expecting its full-year sales to be between $22.8 billion and $23.2 billion, reduced from its previous annual forecast in the range of $23.7 billion to $24.2 billion. Adjusted full-year profit is expected to be between $2.70 and $3.20 per share, compared to its previous forecast of $3.67 to $4.11 per share.

Having already ramped up its discounts as consumers remain affected by heavy inflation, Macy’s revealed that it will need to increase its discounts further in the second quarter in order to clear out its spring and summer inventories as consumer spending continued to dwindle. This contrasts the company’s intention last quarter to reduce its promotional activities.

With food prices and rentals continuing to rise, customers are now viewing high-end products that are offered by the likes of Macy’s as lower down on their lists of priorities.

The post Macy’s Shares Fall After Annual Forecast Cut appeared first on theprimarymarket.com.

The retail chain’s earnings were largely boosted by its decision to offer steep discounts during the holiday period in an effort to get rid of excess inventory and attract consumers amid steep inflation. According to Chief Executive Jeff Gennette, these promotions were “competitive but measured.”

Despite tight economic conditions, Macy’s was able to limit its decline in profit for the period. Its 34.1% margin was just a 2% decline; a fall that was minor in comparison to competitors such as Kohl’s Corp, which took a 10 percentage point hit.

Following the sale of large volumes of excess inventory, the retail group will look to dial back on its promotions, refocusing its efforts on expanding profit margins.

Despite other retailers such as Walmart Inc and Target Corp making more cautious forecasts in the face of unwavering inflation, Macy’s has remained cautiously optimistic. It forecasts an adjusted full-year profit per share between $3.67 and $4.11, with full-year sales projected to be between $23.7 billion and $24.2 billion.

The post Macy’s Stock Rises Following Positive Earnings Forecast appeared first on theprimarymarket.com.

Macy’s did well in Q2 versus the Wall Street estimates, recording $5.6 billion in net sales versus the $5.49 billion expected. The department store’s gross margin was 38.9%, narrowly missing out on the 39% estimate, but came at adjusted earnings per share of $1.00 compared to an estimated $0.85.

For the full year, Macy’s now expects to see revenue of $24.34 billion to $24.58 billion after previously forecasting revenue of $24.46 billion to $24.7 billion. It anticipates that the customers will further scale down on the non-essential items like clothing, forcing the company to start cleaning its shelves by offering significant discounts.

“The consumer is not as healthy as they were in prior quarters,” Macy’s CFO Adrian Mitchell explained. “We have seen declining retail traffic in areas of weakening apparel sales over the quarter as the consumer faces higher costs on essential goods, particularly grocery.”

Macy’s stock closed at $18.61 on Monday before jumping to $20.20 early on Tuesday. It later settled at $19.31, which marks a 6.69% increase in value in the last month but still remains 29.47% down year to date.

The post Macy’s Stock Jumps Despite Full-Year Forecast Cut appeared first on theprimarymarket.com.

The department store company is now expecting its full-year sales to be between $22.8 billion and $23.2 billion, reduced from its previous annual forecast in the range of $23.7 billion to $24.2 billion. Adjusted full-year profit is expected to be between $2.70 and $3.20 per share, compared to its previous forecast of $3.67 to $4.11 per share.

Having already ramped up its discounts as consumers remain affected by heavy inflation, Macy’s revealed that it will need to increase its discounts further in the second quarter in order to clear out its spring and summer inventories as consumer spending continued to dwindle. This contrasts the company’s intention last quarter to reduce its promotional activities.

With food prices and rentals continuing to rise, customers are now viewing high-end products that are offered by the likes of Macy’s as lower down on their lists of priorities.

The post Macy’s Shares Fall After Annual Forecast Cut appeared first on theprimarymarket.com.

The retail chain’s earnings were largely boosted by its decision to offer steep discounts during the holiday period in an effort to get rid of excess inventory and attract consumers amid steep inflation. According to Chief Executive Jeff Gennette, these promotions were “competitive but measured.”

Despite tight economic conditions, Macy’s was able to limit its decline in profit for the period. Its 34.1% margin was just a 2% decline; a fall that was minor in comparison to competitors such as Kohl’s Corp, which took a 10 percentage point hit.

Following the sale of large volumes of excess inventory, the retail group will look to dial back on its promotions, refocusing its efforts on expanding profit margins.

Despite other retailers such as Walmart Inc and Target Corp making more cautious forecasts in the face of unwavering inflation, Macy’s has remained cautiously optimistic. It forecasts an adjusted full-year profit per share between $3.67 and $4.11, with full-year sales projected to be between $23.7 billion and $24.2 billion.

The post Macy’s Stock Rises Following Positive Earnings Forecast appeared first on theprimarymarket.com.

Macy’s did well in Q2 versus the Wall Street estimates, recording $5.6 billion in net sales versus the $5.49 billion expected. The department store’s gross margin was 38.9%, narrowly missing out on the 39% estimate, but came at adjusted earnings per share of $1.00 compared to an estimated $0.85.

For the full year, Macy’s now expects to see revenue of $24.34 billion to $24.58 billion after previously forecasting revenue of $24.46 billion to $24.7 billion. It anticipates that the customers will further scale down on the non-essential items like clothing, forcing the company to start cleaning its shelves by offering significant discounts.

“The consumer is not as healthy as they were in prior quarters,” Macy’s CFO Adrian Mitchell explained. “We have seen declining retail traffic in areas of weakening apparel sales over the quarter as the consumer faces higher costs on essential goods, particularly grocery.”

Macy’s stock closed at $18.61 on Monday before jumping to $20.20 early on Tuesday. It later settled at $19.31, which marks a 6.69% increase in value in the last month but still remains 29.47% down year to date.

The post Macy’s Stock Jumps Despite Full-Year Forecast Cut appeared first on theprimarymarket.com.