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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Macy's Income for the First Quarter of 2019

Macy's Income for the First Quarter of 2019



Macy reported first-quarter earnings and sales from the same store that surpassed analysts' expectations, as its initiatives to refurbish obsolete stores and increase the number of users in their stores through its mobile application showed signs of payouts.

fell a year ago, as the department store chain continues to face many of the same challenges that now affect all retailers. It's not easy to get people in the shopping center to buy clothes when they can shop online at Amazon, or from platforms such as Stitch Fix and Rent the Runway.

His shares initially grew by more than 7 percent in the pre-marketing trade of News.

Macy also confirmed his earnings forecast for the whole year.

Here's what Macy reported as compared to what analysts expect, based on Refinitiv data:

* Revenue per unit: 44 cents vs. 33 cents expected
* Revenue: $ 5.504 billion vs. expected $ 5.505 billion
* Sales from the same store: up 0.7% at a decline of 0.2% expected on own plus licensed base [1

9659002] CEO Jeff Gennett said ecommerce revenue rose by a two- in the quarter, while the mobile remains the fastest growing sales growth channel.

There was some influence on business because the Easter holiday fell later this season's season than last year, he added, and the colder, damp weather covers much of the country's early spring, encouraging more consumers to stay indoors.

But Macy is doing particularly well with her most faithful buyers, "said the CEO. Transactions growth of 5.7% in the quarter was driven by Macy's most loyal customers who "shop more often than ever," said Gennette.

Reported net profit for the quarter ended May 4 amounted to $ 136 million, or 44 cents per share, by $ 139 million or 45 cents a share a year ago. This was before analysts 'expectations for 33 cents based on data from Refinitiv

Sales fell to $ 5.504 billion from $ 5.541 billion. This is in line with analysts' expectations for revenue of $ 5.505 billion

Sales in Macy's stores, open for at least 12 months, on a property plus licensed basis, increased by 0.7%, better than expected 0.2% decline.

For the fiscal year 2019, Macy's still calls for net sales to be almost equal to the previous year. Sales of the same store on own plus licensed basis are projected to be equal to 1%. And Macy's is still expecting adjusted earnings per share to fall within the range of $ 3.05 to $ 3.25. Analysts call for a $ 3.09 per share profit per share

Macy tries to clear his clothing offer as her stocks have been inflated in the past, with the items staying on the shelves unsold and thus doing pressure on profits. In a broader sense, she is still trying to find a fashionable way to compete with the likes of Zara, Lululemon and Madewell.

"We believe that the biggest vulnerability in the department of department stores remains women's clothing – and in particular the need to better attract and retain new millennia and generation Z customers," Cowen & Co. analysts say. in a study. Other recent initiatives to attract buyers include adding rotation markets for popular brands to more than two dozen stores, using virtual reality headphones to sell furniture and launching a US mobile payment option to reduce costs and increase sales. Macy's also said he planned to start cutting some of his larger locations without requiring so much real estate

Macy's, with a market capitalization of approximately 6.7 billion dollars, have seen the decline of its shares by nearly 27% so far this year. This compares with the S & P 500 Retail ETF (XRT) earnings of about 5%.

Meanwhile, the tariffs are another threat to retailers like Macy's, and the White House just earlier this week has released a new list of about $ 300 billion. The Chinese goods that President Donald Trump has said are planning to reach tariffs of up to 25%. The list includes everything from clothes and sneakers to sporting goods and other accessories that are often found in the mall. – CNBC Courtney Reagan contributes to this
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