Macy’s lowers full year outlook

Macy’s, Inc. reported diluted earnings per share of 99 cents and adjusted diluted earnings per share of 1 dollar compared to diluted earnings per share of 1.08 dollars and adjusted diluted earnings per share of 1.29 dollars in the second quarter of 2021.

This compares to diluted earnings per share and adjusted diluted earnings per share of 28 cents in the second quarter of 2019.

For the full year, the company has lowered forecast and expects revenues in the range between 24,340 million dollars and 24,580 million dollars, adjusted EBITDA as a percent of sales approximately 10.5 percent and adjusted diluted earnings per share between 4 dollars and 4.20 dollars.

“During the second quarter, we delivered solid results, despite the challenging environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc., adding, “We expect to come out of this uncertain period in a strong position with a healthy balance sheet, new capabilities and a talented team ready to capture renewed demand.”

Highlights of Macy’s Q2 performance

The company’s comparable sales were down 1.5 percent on an owned basis and down 1.6 percent on an owned-plus-licensed basis; but up 4.3 percent and 4.4 percent, respectively, versus the second quarter of 2019.

Digital sales decreased 5 percent year-over-year while increasing 37 percent versus the second quarter of 2019.

Macy’s comparable sales were down 2.9 percent on an owned basis and down 2.8 percent, on an owned-plus-licensed basis.

Bloomingdale’s comparable sales on an owned basis were up 8.8 percent and on an owned-plus-licensed basis were up 5.8 percent.

Bluemercury comparable sales were up 7.6 percent on an owned and owned-plus-licensed basis.

Gross margin for the quarter was 38.9 percent, down from 40.6 percent in the second quarter of 2021.