Earnings Review and Free Research Report: Macy’s Reported Better than Expected Earnings and Revenue Results

Research Desk Line-up: Bon-Ton Stores Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Macy’s, Inc. (NYSE: M), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=M, following the Company’s announcement of its second quarter fiscal 2017 financial results on August 10, 2017. The retailer’s reiterated its fiscal year 2017 guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Department Stores industry. Pro-TD has currently selected The Bon-Ton Stores, Inc. (NASDAQ: BONT) for due-diligence and potential coverage as the Company reported on August 17, 2017, its operating results for Q2 FY17 which ended on July 29, 2017, and also reaffirmed its earnings guidance for the full year FY17. Register for a free membership today, and be among the early birds that get access to our report on Bon-Ton Stores when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on M; also brushing on BONT. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

Macy’s sales totaled $5.55 billion in Q2 2017, reflecting a drop of 5.4% compared with sales of $5.87 billion in Q2 2016. The y-o-y decline in total sales was partially attributed to the closure of stores previously announced by the Company. Macy’s comparable sales on an owned basis were down 2.8% in the reported quarter and down 2.5% on an owned plus licensed basis. The Company’s revenue numbers exceeded analysts’ expectations of $5.52 billion.

Macy’s, operating income totaled $254 million, or 4.6% of sales, for Q2 2017 compared to $117 million, or 2.0% of sales, for Q2 2016. Excluding non-cash settlement charges of $51 million, the Company’s operating income for the reported quarter totaled $305 million, or 5.5% of sales. Excluding asset impairment and other charges primarily related to store closings of $249 million and non-cash settlement charges of $6 million, operating income for the prior year’s corresponding quarter would have been $372 million, or 6.4% of sales.

Macy’s operating income for Q2 2017 included $43 million in book gains related to the sales of real estate compared to $21 million in Q2 2016.

For Q2 2017, net income attributable to Macy’s shareholders was $116 million, or $0.38 per diluted share, compared to net income attributable to Macy’s shareholders of $11 million, or $0.03 per share, for Q2 2016. The Company’s earnings per diluted share were $0.48 per share excluding non-cash retirement plan settlement charges and net premiums and fees associated with debt repurchases. In Q2 2016, the Company recorded earnings of $0.54 per share excluding asset impairment and other charges primarily related to store closings and non-cash settlement charges. Macy’s earnings exceeded Wall Street’s expectations of $0.46 per share.

Cash Flow

Macy’s net cash provided by operating activities was $536 million in H1 2017 compared to $560 million in H1 2016. The Company’s net cash used by investing activities in H1 2017 was $213 million compared to $338 million in H1 2016. Macy’s operating cash flows net of investing totaled $323 million in H1 2017 compared to $222 million in H1 2016.

Macy’s repurchased approximately $101 million face value of senior notes and debentures in Q2 2017. The debt repurchases were made in the open market for a total cost of approximately $108 million, including expenses related to the transactions. For H1 2017, the company repurchased approximately $247 million face value of senior notes and debentures at a total cost of approximately $257 million.

During the reported quarter, the Company also repaid at maturity $300 million of 7.45% senior debentures, due July 2017.

Store Openings/Closings

In Q2 2017, Macy’s opened 16 new free standing Bluemercury beauty specialty stores and 12 new Macy’s backstage off-price stores within existing Macy’s stores. The Company closed two Macy’s stores in Temple, Texas, and Dublin, Ohio, in the reported quarter. Subsequent to the end of Q2 2017, Macy’s announced that it will close the Macy’s store at Magic Valley Mall in Twin Falls, Idaho, in early 2018.

Outlook

Macy’s reaffirmed its previously provided guidance for full-year 2017. The Company expects comparable sales on an owned basis to decline between 2.2% and 3.3%, with comparable sales on an owned plus licensed basis to decline between 2.0% and 3.0%. Macy’s total sales are expected to be down between 3.2% and 4.3% in fiscal 2017.

The Company is projecting adjusted earnings per diluted share of between $3.37 and $3.62 in 2017, excluding the impact of the anticipated settlement charges and net premiums and fees associated with debt repurchases.

Stock Performance

On Wednesday, August 23, 2017, the stock closed the trading session at $20.50, slightly up 0.39% from its previous closing price of $20.42. A total volume of 8.85 million shares have exchanged hands. The stock is trading at a PE ratio of 9.28 and has a dividend yield of 7.37%. The Company’s shares currently have a market cap of $6.28 billion.

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