Published: Sat, November 11, 2017
Finance | By Loren Pratt

Macy's beats estimates, same-store sales fall more than expected

Macy's beats estimates, same-store sales fall more than expected

Sales at Macy's stores open more than 12 months, including sales in departments licensed to third parties, were down 3.6 percent.

Excluding restructuring costs as well as retirement plan settlement charges, adjusted earnings for the latest quarter were $0.23 per share, compared to $0.17 per share past year.

Net sales fell 6.1 percent to $5.28 billion, declining for the 11th straight quarter due to fewer stores from a year earlier.

Earnings: Net income more than doubled to $34 million in the period from $15 million previous year.

"When you think about the amount of sales and profit in the fourth quarter".

"Overall, we're pleased with the results for the third quarter and we remain on track to meet our full-year sales and earnings guidance for 2017", CEO Jeff Gennette said in a news release. Macy's launched its Star Rewards loyalty program during the third quarter and said customers are already "responding positively".

The chain affirmed its forecast this year for a decline of as much as 3.3 percent at stores that it owns. Revenue is predicted to fall by 3.2% to 4.3%, while earnings are expected to land at $3.38 to $3.63 per share.

But Macy's net income attributable to shareholders was $36 million, or 12 cents a share, in the third quarter, compared to $17 million, or 5 cents a share, one year ago.

Analysts had expected revenue of $5.31 billion and a same-store sales decline of 2.6%. The chain said on Thursday that profit plunged 20% last quarter, missing the Street's targets. The results topped Wall Street expectations, but the bar was set low. The middle of the quarter was soft as we experienced disruptions from the hurricanes and other unseasonal weather.

Online sales aren't a problem for Macy's despite its brick-and-mortar struggles.

In a Nutshell: Marks & Spencer announced Wednesday that it is redoubling its transformation efforts, with CEO Steve Rowe saying, "we are accelerating our plans to build a business with sustainable, profitable growth, making M&S special again". "We are going through all the planning now to have a more aggressive rollout in 2018 and beyond".

The company remains optimistic about the holiday season. "We are better this year than last year, particularly with fulfillment". To fuel more gains in digital, Macy's said it has improved search engine optimization and shifted more media spend to online channels. In Clothing & Home early results are encouraging and in global we now have a profitable and robust business.

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