Friday, 25 May, 2018

Macy's same-store sales growth trumps estimates, shares rise

Macy's Quarterly Results Macy's (M) Upgraded to Positive by OTR Global
Laurie Berry | 16 May, 2018, 23:11

Macy's, Inc.'s results for the first quarter of 2018 reflect continuing momentum in the business.

During the first quarter of the year, Macy's Inc reported operating income of $238 million.

Macy's Inc shares rose $2.57 (+8.59%) in premarket trading Wednesday. The rosy performance bodes well for J.C. Penney and Nordstrom, both set to report their quarterly results on Thursday.

Executives told investors the changes were paying off as planed, drawing more shoppers online and in stores and boosting sales overall.

Macy's said that sales were healthy at physical stores for all its main brands as well, which include Bloomingdale's and makeup and beauty chain Bluemercury in addition to Macy's. It's also testing more curated merchandise displays and localized marketing. She thinks Macy's needs to close more stores than it already has and may have made the most it can from real estate sales.

He believes the company has still not figured out a digital strategy to counter the shift to ecommerce, and said that part of the jump in sales came from Macy's moving its Friends & Family loyalty program from the second quarter to the first. "We are maintaining a healthy inventory position, which helped us deliver improved gross margin", he said. Tax cuts have also left most USA households with more money to spend, though higher gasoline prices have been cutting into that.

"Tax cuts, bonuses and good tax refunds have all been a windfall to consumers who have responded by increasing spending", said Neil Saunders, managing director of GlobalData Retail.

With BOPIS (buy online/pickup in store) expanding, Macy's is also adding At Your Service counters for easy order pick up.

Senate likely to vote Wednesday to restore net neutrality
House of Representatives will even vote on the issue or President Trump would impart his required signature on the matter. For almost all of the past 10 years, the FCC has had in place rules that sought to guarantee net-neutrality protections.

Net income totaled $139 million for the quarter, or 2.5 percent of sales, compared to $78 million, or 1.5 percent of sales, for the same quarter previous year.

In related news, CFO Karen M. Hoguet sold 67,515 shares of Macy's stock in a transaction on Thursday, March 1st. There were no impairment and other costs in the first quarter of 2017.

Excluding special items, the company announced Non-GAAP net income of $ 149.00 million or 48 cents per share.

Still, Macy's stock is now up almost 30% this year, a clear sign that many on Wall Street also believe that Macy's is back on track. During the quarter, the company generated same store sales growth in the amount of 4.2%.

The company is raising its profit guidance for fiscal 2018. Revenue is now expected to be down 1 percent to up 0.5 percent. Revenue is seen down 1% to up 0.5%, up from a prior view of down 0.5%-2%. It will remain active on Alibaba's e-commerce platform TMall and social media channels.

Also, EVP Felicia Williams sold 10,000 shares of Macy's stock in a transaction that occurred on Friday, March 2nd.

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.

Recommended

Shenmue 3 Delayed To 2019 To Deliver The Game At Its Best Shenmue 3 Delayed To 2019 To Deliver The Game At Its Best The game is now being developed by Ys Net, an independent development studio founded by franchise creator Yu Suzuki. Creator Yu Suzuki also apologized for the delay, promising "to use this time to improve the quality of Shenmue 3 .

Battlefield V will be revealed next week Battlefield V will be revealed next week The live reveal stream has already been embedded in the site and is counting down the days till EA reveals the next project. PDT, viewers can tune in through the official Battlefield YouTube channel , Twitch , Mixer .com and the official website .

Your Body Clock Is Linked To Risk Of Developing Mood Disorders Your Body Clock Is Linked To Risk Of Developing Mood Disorders Biobank general population cohort whose activity levels were recorded by a wrist-worn accelerometer. Some researchers believe modern life may be the reason for this trigger.

Pope Francis decries 'spiral of violence' in Middle East Pope Francis decries 'spiral of violence' in Middle East This is our Christian vocation, Pope Francis continued, to walk as sons and daughters of the light, persevering in faith.

Neuer makes German squad, but not 2014 hero Gotze Neuer makes German squad, but not 2014 hero Gotze Low's backroom team of Thomas Schneider, Andreas Kopke, Oliver Bierhoff and Marcus Sorg have also all extended their contracts. Borussia Dortmund's Mario Gotze , who scored the goal to win Germany the World Cup in 2014, has been omitted by Low.

School Resource Officer Credited with Saving Lives in Dixon High School Shooting School Resource Officer Credited with Saving Lives in Dixon High School Shooting In regard to the students and teachers, Simonton said they were prepared and that they did exactly what we asked them to do. The school resource officer confronted the suspect, who then fled from the school with the officer in pursuit, Howell said.

EPA chief Scott Pruitt to face extra questions from Congress EPA chief Scott Pruitt to face extra questions from Congress As Pruitt left the hearing room, protesters trailed him through the halls of the Senate office building shouting "Mr. The EPA has said that the first-class flights were necessary, because of security threats against Pruitt.

DR Congo receives first doses of Ebola vaccine amid outbreak DR Congo receives first doses of Ebola vaccine amid outbreak This is the 9th Ebola outbreak that the DRC is witnessing in four decades, after the first outbreak in 1976. A new experimental vaccine has been shown to be highly effective, though quantities are now limited.

Novartis Top Lawyer Resigns Over Cohen Payments, Calls Contract an 'Error' Novartis Top Lawyer Resigns Over Cohen Payments, Calls Contract an 'Error' Klinger cited changes to bonus schemes for Novartis's drug sales force that are meant to avoid potential for corruption. Novartis executives said in the statement that they have "the greatest respect" for Ehrat's decision to step down.

5 people dead as severe storms lash Northeast 5 people dead as severe storms lash Northeast Rainfall totals likely will be the highest in the mid-Atlantic, where more than 4 inches is possible in certain spots. The city and town of Newburgh are two different entities a few miles away from each other.

Pokemon For Nintendo Switch Could Be Officially Announced This Month Pokemon For Nintendo Switch Could Be Officially Announced This Month Emily Rogers is a well-connected video games industry veteran who used to break news before moving to the game creation side. Obviously, none of this info has been verified yet, so we'll just have to wait it out until Ninty drops an official reveal.

Indicted Russian Firm Accuses US Of Inventing 'Make-Believe Crime' Indicted Russian Firm Accuses US Of Inventing 'Make-Believe Crime' Ellis III for the Eastern District of Virginia, has yet to rule on whether to dismiss the charges against Manafort. A spokesman for Mueller's office declined to comment.

JR Smith: 'I Don't Want the Opposing Fans to Like Me' JR Smith: 'I Don't Want the Opposing Fans to Like Me' Not only is he arguably the world's most avid celebrity golfer , he might love the game we love more than anyone on this planet. After the All-Star center was sent careening to the floor, Smart quickly got in the face of Smith in defense of his teammate.

Wisconsin basketball to play Xavier in 2018 Gavitt Games Wisconsin basketball to play Xavier in 2018 Gavitt Games In two additional Wednesday contests, Seton Hall travels to Nebraska and Marquette plays at Indiana. Gavitt passed away in 2011 and was named to the Naismith Memorial Basketball Hall of Fame in 2006.

Kristen Stewart Goes Barefoot at Cannes Film Festival, Defies Heels-Only Rule Kristen Stewart Goes Barefoot at Cannes Film Festival, Defies Heels-Only Rule The festival has earlier received flak for their strict dress code that frowns upon women who refrain from donning sky-high heels. In 2015, Emily Blunt called the rule "very disappointing" and said that "everyone should wear flats, to be honest".