2Q Profits Of Macy’s Barely Budge
Denver, CO, 08/15/2013 (Avauncer.com) – Macy’s, Inc. (NYSE:M) closed at $46.33 in the previous trading session after going down by 4.47% (or -$2.17). With around 383.70 million outstanding shares, the market capitalization of the company is $17.78 billion.
The company, Macy’s, Inc, which is a departmental store operator, indicated a weaker than expected 0.7% bump in the profits of 2Q on Wednesday and dimmed its outlook on full-year earnings amid softer sales projections. This iconic retailer was punished by Wall Street for the latest results, as it drove its shares down as much as 4.6%. Macy’s said that it earned 72 cents a share or $281 million in the last quarter. If we compare this result with the last year’s result, the profit last year was 67 cents a share or $279 million.
The revenue of the company was $6.08 billion. It was contracted by 0.8% as according to the view of Street, the revenue should have been $6.26 billion. Also the sales of the same store fell by 0.8% whereas the analysts forecasted a jump of 2.3%. The Chief Executive Officer of the company, Terry Lundgren said in a statement that their performance in the period is affected by the continuing uncertainty of the customers to spend on discretionary items in the present economic environment.
Same-store sales, for the full year, are expected to increase 2% to 2.9% by the management as compared with the prior target of the company of about 3.5%. Lundgren said that, to recent markdowns, customers are “responding favourably” and the retailer has seen strengthening of the sales trend in the key elements. Lately, it has struggled in an area of “ready-to-wear” clothing for women. He also said that the executives of the company are encouraged by the back-to-school season and the retailer is capturing sales opportunities in active-wear, children-wear and Impulse apparel