Macy's share price falls 1% after Q1 results revenue miss
The department store chain barely missed revenue expectations.
Macy's share price is down despite a mostly positive Q1 earnings report. Macy’s Q1 earnings beat expectations, but Macy’s Q1 revenue narrowly missed Wall Street projections.
Macy's earnings:key figures
|Earnings per share||$0.44|
Macy’s share price falls despite Q1 earnings beat
Macy’s Q1 earnings per share were $0.44, more than the $0.33 predicted by financial experts. Macy’s Q1 revenue was $5.504 billion, slightly less than the expected $5.505 billion. Same-store sales grew by 0.7%. Chief executive officer, ( CEO ), Jeff Gennette, touted the success of Macy's discount brand Backstage, Growth50 stores, and online sales.
‘Our brick and mortar sales trend improved sequentially in the first quarter, supported by the spin-off Growth50 stores and Backstage. We had another quarter of double-digit growth in our digital business, and mobile continues to be our fastest-growing channel,’ said Gennette.
Despite the strong sales, Macy’s Q1 revenue was less impressive than predicted because sales are down overall from a year ago. Cowen and Company's analysts noted that department stores like Macy’s need to attract younger female customers to compete with Amazon.
‘We believe the biggest department store sector vulnerability remains women’s apparel — and specifically the need to better attract and retain new millennial and Generation Z customers,’ wrote Cowen and Company’s retail analysts.
How did Macy’s Q1 results compare to other retailers?
What’s next for Macy’s Q2 earnings?
For fiscal year 2019, Macy’s Q2 earnings per share are predicted to be in the range of $3.05-$3.25. Gennette also noted that the US-China trade war could impact Macy’s Q2 sales.
‘If the potential fourth tranche of tariffs is placed on all Chinese imports, that will have an impact on both our private and our national brands,’ said Gennette.
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