Macy's: forecasts for new fiscal year disappoint

(CercleFinance.com) - Macy's announced on Thursday that it had exceeded its earnings forecasts for the 4th quarter, but its targets for the new financial year were well below those set by consensus.


The American department store chain saw its sales fall by 4.3% to $7.8 billion in the three months to February 1, including a 1.1% decline on a comparable basis.

Net profit came to 342 million euros, or 1.21 dollars per share, compared with a net loss of 128 million, or 0.47 dollars per share, for the same period last year.

On an adjusted basis, earnings per share came to 1.80 dollars, or 2.64 dollars for the full 2024/2025 financial year, whereas the distributor had set itself a target of between 2.25 and 2.50 dollars.

For its new fiscal year, the New York-based group - which also owns the Bloomingdale's chain - said it was expecting EPS of between $2.05 and $2.25, whereas the consensus was for close to $2.40.

Sales are expected to come in at between $21 and $21.4 billion, again far from the $22.2 billion forecast by the market.

In its press release, Macy's explains that it plans to resume share buybacks under a previous $1.4 billion authorization, which did not prevent its shares from falling by more than 4% on Thursday morning in pre-market trading.

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