Macy's (M) reported earnings on Tue 23 Feb 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Macy's beats by $0.21, reports revs in-line with comps above estimates; guides FY17 ~in-line, better than feared :

• Reports Q4 (Jan) earnings of $2.09 per share, excluding non-recurring items, $0.21 better thanthe Capital IQ Consensus of $1.88; revenues fell 5.3% year/year to $8.87 bln vs the $8.83 bln Capital IQ Consensus. Macy's guided for Q4 adj. EPS of $1.85-1.90 on Jan 29.
  • Comparable sales on an owned plus licensed basis for Q4 were down 4.3% vs. ests near -5%. On an owned basis, fourth quarter comparable sales declined by 4.8 percent.
• Co issues in-line guidance for FY17, sees EPS of $3.80-3.90 vs. $3.80 Capital IQ Consensus; sees FY17 revs -2% to ~$26.54 bln vs. $26.49 bln Capital IQ Consensus, reflecting the 40 stores closed in 2015. The co expects comparable sales on an owned plus licensed basis to decline by ~1% in fiscal 2016, with comparable sales on an owned basis to be ~50 basis points lower. 
• "While 2015 was challenging, our sales trend improved in January as the weather turned colder in northern climate zones and Macy's and Bloomingdale's were well-stocked in coats, boots, sweaters, gloves, hats and other seasonal goods. As the year ended, our inventories were in good shape (up by 0.7 percent on a comp basis)."