For its third quarter ending in October, the retailer earned an operating profit of 23 cents per share on sales of $5.28 billion, versus analyst estimates of 19 cents per share on revenue of $5.31 billion. Despite the sales headwinds, Macy's did report adjusted earnings per share of $0.23, topping analysts' estimates calling for $0.19 per share.
Nordstrom, Inc. (NYSE:JWN) shares were riding higher today in tandem with Macy's (NYSE:M), whose stock jumped after the company posted better-than-expected earnings. Macy's said the decline, in part, reflected the closure of stores previously announced by the company.
CEO's Take: Jeff Gennette, chief executive officer, said: "Overall, we're pleased with the results for the third quarter and we remain on track to meet our full-year sales and earnings guidance for 2017".
Quarterly profit rose to $36m compared to $17m a year ago. Nordstrom said the hurricanes hurt sales by about $20 million and earnings by about 4 cents a share. Excluding restructuring costs and other items, Macy's earned 23 cents per share, beating the average analyst estimate of 19 cents, and up from 17 cents past year. We also saw continued double-digit growth in digital and are encouraged by the potential of Backstage in Macy's stores.
Macy's reaffirmed its outlook for full-year comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2.0 percent and 3.0 percent.
Macy's continues to struggle with brick-and-mortar, with sales at stores open for more than 12 months dropping 3.6 percent. That was worse than the company's guidance of "-2.5% or slightly worse", and Wall Street's view of a -2.7% decline.
Like many retailers, Macy's and Kohl's have wrestled with weak sales as customers go online.
Most Macy's stores will open at 5 p.m. local time on Thanksgiving and close at 2 a.m., similar to previous year.
Clothing and home revenue was flat for the half at 1.8 billion pounds ($2.4 billion).
"At the same time, we're innovating with new smaller store concepts, rightsizing some of our stores with other retailers and piloting concepts like our initiative with Amazon", Mansell said.
"The business still has many structural issues to tackle as we embark on the next five years of our transformation, in the context of a very challenging retail and consumer environment".