Macy's, Inc. (M) - Macy's beats by $0.04, misses on revenue
Q3 EPS of $0.23 beats by $0.04.
Revenue of $5.28B (-6.2% Y/Y) misses by $30M.
Q3 comparable sales on an owned plus license basis down 3.6% Y/Y, about 100 basis points worse than expectations.
Absent charges, Q3 operating income of $176M or 3.3% of sales vs. $169M and 3% a year earlier.
Operating cash flows net of investing of $43M in the first nine months of 2017 vs. outflows of $183M for same period a year ago.
Full-year comp sales guidance of down 2.2%-3.3% is affirmed. Full-year EPS (absent items) is seen at $2.91-$3.16.
Press Release
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Part of their re-structure store concept:
In the third quarter of 2017, the company opened eight new freestanding Bluemercury beauty specialty stores for a total of 135 stores and seven new Macy’s Backstage off-price stores within existing Macy’s stores for a total of 45 locations. During the quarter, the company announced that it will close the following stores in early 2018: Laguna Hills Mall in Laguna Hills, CA; Stonestown Galleria in San Francisco, CA; and Westside Pavilion in Los Angeles, CA.
Macy’s, Inc. now expects adjusted earnings per diluted share of between $3.38 and $3.63 in 2017 w/ adjusted earnings per diluted share of $2.91 to $3.16 are expected in 2017.
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Would like to see a bit more real estate sold in 2018 and more focus on On-line sales especially their high margin beauty products. Will be watching news to see more new marketing plans (not loyalty program) that must move the needle. Otherwise, I may not hold out for full value, Dividend still looks secure if adjusted earnings come in as estimated.
EKS |
