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 & 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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets