Macy’s same-store sales drop, digital sales soar 53% YOY
Yahoo Finance's Emily McCormick joins The First Trade with Alexis Christoforous and Brian Sozzi to discuss Macy's second-quarter earnings report.
Video Transcript
ALEXIS CHRISTOFOROUS: --talk earnings because I'm looking at Macy's stock, up 6% here in the premarket. Haven't seen that in a long time. The department store chain lost less money than expected last quarter. Sales also topped forecasts there. So what stood out to you?
EMILY MCCORMICK: Well, Alexis, we're really seeing that pop in premarket trading because of that narrower than expected loss. Really much better than expected results on the bottom line here. Adjusted loss per share at $0.81 versus an estimated loss of $1.85 a share.
We did see those comparable same store sales down 35.1%. That was in line with expectations. And while Macy's didn't give an official outlook, it did say in an earnings presentation this morning, it expects its comparable same store sales would be down by the low to mid 20s percentages in the fall season. So expecting to see a bit of improvement there.
Now, Macy's also got a boost in digital sales during the second quarter albeit not quite as large a boost as some of the other retailers we've seen lately. We saw those up 53% over last year. And the company expects a low to mid teens increase in full year digital sales.
One important quote I want to highlight here from the earnings statement this morning from CEO Jeff Gennette. He noted that the company expects to, quote, "approach the back half of the year conservatively. Our immediate priority is successfully executing holiday 2020." So a little bit of a note of caution here for Macy's, but at least an upbeat report compared to what we saw in the first quarter. Alexis.
ALEXIS CHRISTOFOROUS: Yeah. For sure. Investors will take it. Thanks, Emily.
