Macy’s Strong Earnings Tempered By Weak Sales, But Analysts See ‘Green Shoots’ Emerging
Shares of Macy’s Inc (NYSE:M) remained volatile in early trading on Thursday, after the company reported weak quarterly sales.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
JPMorgan On Macy’s
Analyst Matthew Boss reiterated an Overweight rating, while cutting the price target from $24 to $23.
Macy’s reported second-quarter adjusted earnings of 53 cents per share, surpassing Street expectations of 29 cents per share. Despite a steeper-than-expected decline in same-store sales, the company benefited from a 240 basis point (bps) gross margin expansion to 40.5%, according to a note from Boss.
“All doors (including the First 50) and all regions saw a sequential softening in comp performance in the middle of the quarter (late June) and into early July,” which management attributed to soft consumer spend due to the ongoing macroeconomic uncertainty and “an increasingly complex news cycle,” the …
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