Macy’s Inc. (NYSE: M) on Wednesday reported second quarter earnings that beat analysts, but its shares still fell over 11%.
The Cincinnati-base Company said net sales fell 1.1% to USD 5.57 Billion in the second quarter of 2018. Second quarter net income was USD 166 Million, or 53 cents a share, compared to USD 111 Million, or 36 cents a share, a year earlier. Excluding certain items, the Company earned 70 cents a share in the second quarter.
Analysts polled by Thomson Reuters had estimated earnings of 51 cents per share on revenue of USD 5.55 Billion.
Comparable sales were flat in the second quarter of 2018. Including licensed departments, same-store sales rose 0.5%.
“Macy's Inc. delivered strong performance in the first half of the year, and we are pleased to report our third consecutive quarter of comparable sales growth. Macy's, Bloomingdale's and Bluemercury all performed well. It is encouraging to see the continued strengthening of our brick & mortar business where we saw trend improvements across the portfolio, led by our Growth50 stores. The combination of healthy stores, robust e-commerce and a great mobile experience is Macy's recipe for success.” said Jeff Gennette, Macy's Inc. Chairman and Chief Executive Officer.
However, Macy’s shares fell as much as 12.6% to USD 36.51 per share in the early trading on Wednesday. Excluding today’s loss, the stock was up over 66% this year.
Macy’s also raises its guidance for fiscal 2018. The Company is now expecting earning USD 3.95 to USD 4.15 per share in fiscal 2018, 20 cents higher than the Company previously forecast. Same-store sales are expected to increase by 2.5%.