NEW YORK (AP) — Macy’s deeply discounted spring merchandise to make room for new fall and holiday merchandise amid cautious customer spending, but second-quarter adjusted earnings and sales still beat Wall Street expectations.
Macy’s, which also operates high-end cosmetics stores Bloomingdale’s as well as Blue Mercury, on Tuesday confirmed its annual sales and earnings forecasts, citing uncertainty about the economy in the second half. Shares fell just over 1% in pre-market trading on Tuesday.
Macy’s is one of the last remaining retailers to report second-quarter results in an earnings season that shows how high inflation, despite some mitigation, is forcing shoppers to continue cutting back on discretionary goods like clothing in order to afford larger grocery bills. .
I mentioned her goal First decline in quarterly sales in six years Last week, due to cautious spending as well as backlash by some customers on Pride items.
Home Depot, the nation’s largest home improvement retailer, said last week that Sales continue to decline, with a drop in expensive items such as appliances and other things that often require financing. This has become a problem with interest rates rising rapidly over the past year, making credit cards a much greater burden for consumers.
but Walmart It delivered another strong quarterly gain in sales as its lower prices continued to attract budget-conscious consumers looking for bargains in a tough economic environment. The country’s largest retailer boosted its annual outlook last week after reporting better-than-expected second-quarter results sent stocks higher.
Macy’s reported a loss of $22 million, or 8 cents per share, for the quarter ended July 29. That compares to earnings of $275 million, or 99 cents per share, in the same period last year.
The loss includes a non-cash settlement fee related to the transfer of the retirement obligations of certain retirees and beneficiaries under the Company’s pension plan. Adjusted earnings for the most recent quarter were 26 cents a share.
Revenue fell to $5.28 billion from $5.83 billion a year ago.
Analysts had expected a profit of 14 cents on sales of $5.06 billion.
Comparable sales — those from stores and digital channels that have been open for at least a year — fell 8.2% in the quarter. The figure excludes licensed owned businesses such as cosmetics.
In a separate announcement, Macy’s said it would open New small format Stores in the West and Northeast in an effort to increase customer traffic and attract new shoppers.
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