Macy's Q2 Profit Increases, But Results Miss Estimates; Backs 2014 EPS View

(RTTNews) - Department store chain Macy's Inc. (M) reported that its second-quarter net income increased to $292 million from the previous year's $281 million, with earnings per share improving to $0.80 from $0.72 in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.

Sales in the second quarter of 2014 totaled $6.267 billion, up 3.3 percent from total sales of $6.066 billion in the second quarter of 2013. Wall Street expected revenues of $6.30 billion for the quarter.

Comparable sales together with comparable sales of departments licensed to third parties were up 4.0 percent in the second quarter of 2014 over 2013. Second quarter comparable sales were up 3.4 percent in 2014 compared with 2013.

The company said that expectations for the second half of 2014 remain on track, with guidance for comparable store growth of 2 percent to 3 percent. However, even with an improved sales trend in the second quarter, the company was unable to make up its sales shortfall from the first quarter. This calculates to expectations for a full-year 2014 comparable sales increase of 1.5 percent to 2 percent.

Full-year 2014 comparable sales together with comparable sales of departments licensed to third parties now are expected to increase by 2 percent to 2.5 percent. Previous guidance was for full-year comparable sales to increase by 2.5 percent to 3 percent.

The company continues to expect full-year 2014 earnings per share in the range of $4.40 to $4.50, consistent with guidance previously provided. Analysts project annual earnings per share of $4.47.