Home Cryptocurrency Macy’s Shares Drop after Reporting Mixed Q1 2023 Earnings and Lowered Its Full-Year Outlook

Macy’s Shares Drop after Reporting Mixed Q1 2023 Earnings and Lowered Its Full-Year Outlook

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Macy’s said Nike will return to stores from October this year.

Macy’s (NYSE:M), an American consumer goods conglomerate holding company, reported first-quarter results on June 1. According to the announcement, Macy’s reported net sales of $4.98 billion in his first three months of the year. (Q1 2023), representing a decline of approximately 7% on a year-over-year basis. However, analysts surveyed by REFINITIV had expected the company to report revenue of about $5.04 billion in the first quarter.

Specifically, the company noted that net income for the first quarter was $155 million, or 56 cents per share, down from $286 million, or 98 cents per share, a year ago. As a result, M shares continued their bearish outlook for the year before trading on Thursday, dropping about 4% to trade near $13.09.

M shares have fallen about 40% in the past three months after dropping 42% last year, according to the latest stock market data.

Macy’s First Quarter 2023 Financial Highlights

The $3.83 billion market cap company has declared a regular quarterly dividend of 16.54 cents per common share to be paid to shareholders on July 3, 2023, snapshot taken on June 15, 2023 bottom. This is after reporting the product inventory for the first quarter. $4.607 billion. But the company said it expects to underperform expectations for the rest of the year.

“The company is taking a cautious approach for the rest of the year and is lowering its full-year sales and earnings guidance for 2023 to reflect the expected macroeconomic impact on consumers,” Macy’s said in a statement. I got it.

Nonetheless, the company’s CEO, Jeff Gennett, said the company’s gross margin in the first quarter was 40.0%, up from 39.6% in the first quarter of 2022, and better than expected. .

For its Blue Mercury division, Macy’s noted a 4.3% increase in comparable sales on a company basis. This has resulted in approximately 676,000 active customers purchasing his Bluemercury brand on a 12-month basis. The company noted that Bloomingdale’s brand has reported 4.1 million active customers over the past 12 months. Despite this, Bloomingdale’s comparable sales declined by approximately 3.9% on an internal basis.

“During the first quarter, our disciplined team, strength in inventory management and operational efficiency consistently exceeded gross margin and bottom line expectations. We planned for this year to be difficult, but since late March, the demand trend in our discretionary category has weakened further,” Gennet said.

The company also promised customers that Nike would return to stores starting in October. As a result, Macy’s expects sales to peak in the second half of the year as the Christmas season begins.

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