Macy's (M) shares moved higher Tuesday after the retailer posted better-than-expected second quarter earnings while trimming its full-year profit forecast amid the extended impact of inflation on domestic discretionary spending.
Macy's said adjusted earnings for the three months ending in April, the group's fiscal second quarter, came in at $1.00per share, down more than 22% from the same period last year but well ahead of the Street consensus forecast of 85 cents share. Group net sales, Macy's said fell 0.8% to $5.6 billion, narrowly topping analysts' estimates of a $5.49 billion tally, while same-store sales were down 1.5%.
Looking into the 2022 financial year, Macy's said it sees net sales in the region of $24.34 billion to $24.65 billion, modestly shy of its prior forecast, and trimmed its earnings estimate to between $4.00 and $4.20 per share, down from its May range of $4.53 to $4.95 per share.
“During the second quarter, we delivered solid results, despite the challenging environment,” said CEO Jeff Gennette. “Our teams have consistently responded to the dynamic landscape with disciplined, data-driven actions to ensure the health and stability of our business"
"We believe that we are well positioned to respond to changing consumer behaviors," he added. "Despite inflationary pressures, consumers continued to shop Macy's as a style source and leading gifting destination."
Macy's shares were marked 3.05% higher in early Tuesday trading immediately following the earnings release to change hands at $19.17 each.
