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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.