Macy's Q2 Earnings Top Estimates; Cuts FY22 Forecast Citing Macroeconomic Pressures

Macy's Inc M reported a second-quarter FY22 sales decline of 0.83% year-on-year to $5.60 billion, beating the consensus of $5.49 billion.
Comparable sales decreased 1.5% on an owned basis and down 1.6% on an owned plus licensed basis versus Q2 2021.
Comparable sales improved 4.3% on an owned basis and up 4.4% on an owned plus licensed basis versus Q2 2019.
Digital sales fell 5% Y/Y versus Q2 FY21 and grew 37% versus Q2 FY19.
The operating margin was 7.1% versus 10.6% last year. Operating income for the quarter declined 33.2% to $399 million.
The gross margin was 38.9%, down 170 basis points from Q2 2021.
Adjusted EBITDA was $616 million versus $836 million last year.
Adjusted EPS of $1.00 beat the analyst consensus of $0.85.
Macy's held $303 million in cash and equivalents as of July 30, 2022. Net cash provided by operating activities for the six months totaled $303 million.
"Despite inflationary pressures, consumers continued to shop Macy's as a style source and leading gifting destination. Additionally, Bloomingdale's and Bluemercury captured demand for luxury brands, resulting in both nameplates outperforming in the quarter," said chairman and CEO Jeff Gennette.
Outlook: Macy's lowered its annual sales and EPS forecast to incorporate risks related to increased macroeconomic pressures.
Macy's reduced its FY22 sales guidance to $24.34 billion - $24.58 billion from the previously expected $24.46 billion – $24.7 billion, against the consensus of $24.36 billion.
The company lowered the FY22 adjusted EPS outlook to $4.00 - $4.20 from $4.53 - $4.95 versus the Street view of $4.51.
Price Action: M shares are trading higher by 1.83% at $18.95 in premarket on the last check Tuesday.
Photo Via Wikimedia Commons

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