NEW YORK, NY / ACCESSWIRE / August 21, 2018 / Retailers Macy's and TJX Companies closed in the green on Monday. Macy's saw a nice bounce post its collapse last week after earnings. TJX Companies hit a new high as traders awaited the company's second quarter financial results.
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Macy's, Inc. shares closed up 6.05% on Monday with almost 13 million shares traded. The department store retailer has seen a bounce back after the share price dropped when the company reported its earnings last week. Macy's shares saw a drop of 16% after posting second quarter earnings results that beat on both the top and bottom line on the 15th. For the quarter, Macy's reported that revenue fell 1% YOY to $5.57 billion. This was still better by about $20 million compared to what analysts had been expecting. It was unfortunately the very first quarterly sales decline for the company in three quarters. Adjusted earnings at 59 cents per share were also better than the 51 cents that analysts were waiting for. CEO Jeff Gennette said during the earnings call, "Macy's Inc. had another strong quarter. This was our third consecutive quarter of comparable sales growth and reflects ongoing improvement in the business that we saw first in the fourth quarter of 2017. It is early innings, but I feel good about the progress that we've made, the focus and energy of the team, and the positive response our customers have to our strategy."
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The TJX Companies, Inc. closed up 1.30% on about 5 million shares traded yesterday. The stock hit a new high of $101.80 as traders geared up for the retailer's earning results today. The company had forecast that comp sales would rise 1% to 2% in the second quarter. In the first quarter, TJX Companies had delivered a positive earnings surprise of 10.8%, also outperforming the Zacks Consensus Estimate by an average of 4.8% over the trailing four quarters. Analysts are expecting the company to post revenue of $8.99 billion and EPS of $1.05. The company's EPS guidance is in the range of $1.02 to $1.04. According to Ron Friedman, a partner at Marcum LLP and a long-time consultant for clothing manufacturers, shoppers are spending money at full price retailers due to the upbeat economy. It was at the end of July that Friedman spoke to TheStreet and said, "The economy is good. People are going out to restaurants, clubs, movies and they're shopping at the Nordstrom's and Macys of the world." According to Friedman, tariffs could send these shoppers back to off-price retailers again.
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