Pressure on US retailers continues, with department store chain Macy’s downgrading guidance for the full year as it expects consumer spending to ease on non-core items such as clothing.
Macy’s warning comes even as its second-quarter numbers beat market estimates.
Against this backdrop, the chain now sees its 2022 revenue in a range of $24.34 billion to $24.58 billion, up from a previous estimate of $24.46 billion to $24.7 billion.
At the same time, it places annual adjusted earnings per share in a range of $4 to $4.2, significantly lower than previous guidance of $4.53 to $4.95.
Wall Street analysts had expected full-year guidance of $24.36 billion and $4.51 per share, according to Refinitiv.
Elsewhere, in the second quarter Macy’s reported earnings per share of $1 versus the $0.85 that analysts were expecting.
It also saw its revenue rise to $5.6 billion while the market was expecting $5.49 billion.
However, Macy’s net income in the quarter fell to $275 million, or 99 cents per share, from $345 million, or $1.08 per share, a year earlier.
Its net sales fell slightly to $5.6 billion from $5.65 billion last year.
Finally, Macy’s comparable sales fell 1.6% from last year, but less than analysts’ forecast of a 2% drop.
Source: Capital
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