Macy's Beats on Q2 Earnings but Shares Fall

Macy's reported stronger-than-expected fiscal second-quarter results on Thursday, September 10, but its shares fell in premarket trading as investors weighed the quality of the earnings beat. The retailer posted adjusted earnings of 63 cents per share for the quarter ended August 1, well above the 37 cents Wall Street had expected, and net sales rose 1.1 percent year over year to 4.87 billion dollars, topping the analyst consensus of 4.81 billion dollars. A year earlier, the company had earned 35 cents on an adjusted basis. Comparable sales across the Macy's portfolio rose 2.7 percent, ahead of the roughly 1 percent analysts had forecast, though the pace slowed from the 3 percent gain recorded in the first quarter. Despite the beat, the stock dropped 4.7 percent to 20.50 dollars in premarket trading. The decline came after shares had already fallen 4.2 percent in the prior session and closed below their 200-day moving average, near 21.60 dollars, for the first time since May 19. The market reaction left open questions about how much of the quarter's strength reflected core retail performance rather than one-time items.