Anticipated Earnings Report for Macy’s on August 22
Earnings Streak Continues?
Macy’s (M) from the Retail – Regional Department Stores industry, is in the spotlight for its consistent record of exceeding earnings expectations. Over the past two reports, the company has surprised the market, with an average surprise rate of 20.74%.
In its recent quarter, Macy’s reported earnings of $0.56 per share, surpassing the market expectation of $0.46 per share. This was a positive surprise of 21.74%. Just before that, the company had reported earnings of $1.88 per share, against an expected $1.57 per share, registering a 19.75% surprise.
Such a track record has led to a positive shift in earnings estimates for Macy’s. With the company’s current rank and the positive Earnings ESP, it seems another earnings surprise might just be around the corner. The forthcoming earnings report is set for release on August 22, 2023.
Week’s Expectation Leading Up to Earnings
Heading into the anticipated earnings release, Macy’s (NYSE:M) may encounter a turbulent week. Forecasts suggest a potential dip in performance, potentially returning to recent lows. The prevailing sentiment hints at the retailer falling short of second-quarter earnings estimates and potentially issuing a subdued outlook.
The earnings announcement is scheduled for the morning of Tuesday, August 22, at 6:55 AM ET. Forecasts hint at a significant drop in both profit and sales growth due to consumers cutting back on luxury fashion items and discretionary goods.
A Closer Look at the Anticipated Figures
For the forthcoming earnings report, here’s what analysts expect:
Revenue: Macy’s expects a net sales range between $5.0 billion and $5.1 billion for Q2 2023. The market consensus stands at $5.09 billion, indicating a potential 9% decline year-over-year. Reflecting on Q1 2023, the company witnessed a 7% YoY decrease, reporting $5 billion.
Earnings: The retailer provided a guidance of $0.10-$0.15 adjusted EPS for Q2 2023. Analysts project an EPS of $0.13, which stands in contrast to the $1.00 reported in the same quarter the previous year. The first quarter of 2023 saw a dip in adjusted EPS to $0.56 from the $1.08 in Q1 of the prior year. Current challenges in the economy and shifts in consumer behavior have led to this. The shift from discretionary items to essentials has been noticeable. Comparable sales dropped by 7.9% on an owned basis and 7.2% on an owned-plus-licensed basis. Such trends seem likely to persist through Q2.
Despite the challenges, Macy’s remains optimistic due to its diversified investment strategy. There’s a positive buzz around its small-format stores, and the retailer sees potential growth in this area.
