Macy’s Inc.
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swung to a loss in the latest quarter while posting a decline in sales. The company logged a fiscal second-quarter net loss of $22 million, or 8 cents a share, whereas it posted net income of $275 million, or 99 cents a share, in the year-prior period. Macy’s said its net-loss figure included a non-cash settlement charge related to the transfer of pension obligations for some retirees and beneficiaries. On an adjusted basis, Macy’s saw earnings per share fall to 26 cents from $1.00 but exceed the FactSet consensus, which was for 14 cents. Total revenue dropped to $5.28 billion from $5.83 billion, while analysts were modeling $5.26 billion, based on the average of three estimates. Comparable sales at owned stores fell by 8.2%, while comparable sales across owned plus licensed stores were off 7.3% relative to a year before. “Our teams surgically implemented clearance markdowns and promotions to effectively clear spring seasonal receipts and ensure fresh assortments for the fall and Holiday seasons,” Chief Executive Jeff Gennette said in a statement. The company continues to see macroeconomic uncertainty but reiterated its prior full-year outlook, which called for $22.8 billion to $23.2 billion in revenue and $2.70 to $3.70 in adjusted EPS. “In light of ongoing macroeconomic pressures and uncertainty on when those will abate, the company continues to take a cautious approach on the consumer,” Macy’s said in its release.
