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Macy & # 39; s (M) exceeded the fourth quarter earnings forecast on Tuesday morning, but did not achieve comparable store sales, while aiming for annual savings of $ 100 million from a restructuring plan. Macy's stock rose slightly before opening.
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Macy's earnings
estimates: Wall Street expects a 10% drop in Macy's earnings per share, at $ 2.53, according to Yahoo Finance. Revenues were also expected to fall by 3% to $ 8.45 billion. Consensus Metrix expected comparable store sales to increase 0.6%, or 0.9% if approved departments are included.
Results: Macy's earnings were $ 2.73 per share for $ 8.455 billion in revenue. Same store sales increased 0.4%, or 0.7% if licensed stores are included.
Perspective: $ 3.05 to $ 3.25 for the full year, below consensus of $ 3.30, on stable revenue growth, in line with views, with flat-rate sales up reach 1%.
Macy's announced a first step in its restructuring plan that simplifies the management of its management team to speed decision-making, reduce costs and be more at ease. listen to customers. Ultimately, the restructuring plan aims to increase margins by improving inventory and operations planning, supply chain efficiency, price optimization, private label sourcing, and acquisition and acquisition strategies. customer loyalty.
As of 2019, Macy's expects the restructuring to generate annual spend savings of $ 100 million. For fiscal year 2018, the Company recorded non-recurring charges of approximately $ 80 million pre-tax for restructuring activities.
"The measures we are announcing to further streamline our management structure will enable us to move faster, reduce costs and better meet changing customer expectations," said Jeff Gennette, President and Chief Executive Officer. . "What's important is that these changes lay the foundation for achieving significant improvements in business productivity."
Macy's stock
Shares rose 1.2% before the open stock markets today. Macy's action showed weakness, with his relative strength line on a downward trend. In addition, it trades below its moving averages over 50 and 200 days.
Last month, Macy's shares posted their biggest loss in a day as a result of weak sales. Shares plummeted 17.7%, beating 17.5% in the 2008 financial crisis, the worst loss in its history. Target (TGT) slips despite the publication of positive numbers.
Macy's canceled its sales and earnings forecast for the full year less than two months after its rise. According to the department store giant, comparable sales increased by only 0.7% over the period from November to December.
The holiday shopping period started on Black Friday and during Cyber Week, but it weakened in mid-December and did not resume until Christmas week. said Gennette at the time.
Regional department store Dillard (DDS) beat Q4 views after Monday's close. Dilard's stock jumped 10% on Tuesday.
There are also other results to come for department stores, with Nordstrom (JWN) and low end J.C. Penney (JCP) both for Thursday.
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