Macy's Cuts FY22 Guidance

While reporting second-quarter results on Tuesday, Macy's, Inc. (M) lowered its outlook for the remainder of the year to incorporate the risk in the continued deterioration of consumer discretionary spending in some of the categories and the level of inventory within the industry, as well as risks associated with a more pronounced macro downturn.

For fiscal 2022, the company now expects adjusted earnings per share in a range of $4.00 - $4.20, revised from prior guidance range of $4.53 - $4.95. Net sales are now expected in a range of $24.34 billion to $24.58 billion, revised from prior guidance range of $24.46 billion to $24.70 billion. Adjusted EBITDA margin is projected to be approximately 10.5% for the fiscal year.

Second quarter adjusted earnings per share was $1.00 compared to $1.29, a year ago. Analysts on average had expected the company to earn $0.85 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. Adjusted EBITDA margin was 11.0%, for the quarter.

Earnings per share was $0.99 compared to $1.08, last year. Net income declined to $275 million from $345 million.

Net sales declined to $5.60 billion from $5.65 billion, last year. Analysts on average had estimated $5.49 billion in revenue. Comparable sales were down 1.5% on an owned basis and down 1.6% on an owned-plus-licensed basis.

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