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Macy’s drops 3.6% in pre-market trade after earnings miss

Published 08/13/2014, 08:10 AM
Macy’s under pressure after Q2 earnings miss
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Investing.com - U.S. department store operator Macy's (NYSE:M) saw shares fall sharply in pre-market trade on Wednesday, after reporting lower than expected second quarter earnings and revenue figures ahead of the opening bell.

Macy’s said adjusted earnings per share came in at 80 cents in the second quarter, below expectations for earnings of 86 cents per share.

The company’s second quarter revenue totaled $6.27 billion, missing forecasts for revenue of $6.3 billion.

“Our sales trend improved at both Macys and Bloomingdales in the second quarter, reflecting a rebound in shopping activity once weather patterns normalized,” said Terry J. Lundgren, Macys, Inc. chairman and chief executive officer.

Second quarter comparable sales were up 3.4% in 2014 compared with 2013.

Expectations for the second half of 2014 remain on track, with guidance for comparable store growth of 2% to 3%.

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

Following the release of the report, Macy’s shares tumbled 3.6% in pre-market trade.

Meanwhile, the outlook for U.S. equity markets was higher. The Dow pointed to a gain of 0.4% at the open, the S&P 500 indicated an increase of 0.5%, while the Nasdaq 100 signaled a gain of 0.5%.

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