Macy’s reported third quarter results this morning that exceeded the company’s expectations in same-store sales, gross margin, earnings and cash flow.
Macy’s, the largest department store customer for the action sports industry, actually sounded upbeat – a rare emotion in the retail world these days. It also raised its full-year guidance.
Wall Street didn’t like the company’s fourth quarter guidance, however. Share are trading down 5.7% in pre-market trading.
Here are some highlights from the quarter:
Sales: down 3.9% to $5.3 billion
Same-store sales: down 3.6%
Online sales: up 21.1%
Net loss: $35 million vs. a net loss of $44 million the same period last year
Gross margin: 40.2% vs. 39.5%
Cash: The company ended the quarter with $489 million in cash. Cash flow has been strong enough that Macy’s could fund buying with cash during peak periods without tapping its credit lines.
Q4 guidance: Same-store sales are expected to be down 1% to 2%. Earnings per share should range between $1 and $1.05
Full year guidance: Same-store sales down 5.4% to 5.7%, better than the 6% to 8% decline expected. Earnings per share are expected to range from $1.01 to $1.06, better than the previously forecast of 70 to 80 cents per share.
