Macy’s is set to report second-quarter earnings before the bell on Thursday.
Here’s what Wall Street is expecting:
- Earnings per share: 46 cents, according to analysts surveyed by Thomson Reuters.
- Revenue: $5.518 billion, Thomson Reuters said.
- Same-store sales: a drop of 3.2 percent, according to Thomson Reuters.
Earlier this year, Macy’s shares plunged when the retailer reported a 39 percent drop in its fiscal first-quarter profit, hurt by a decline in sales and higher inventory that weighed on margins. Same-store sales — another metric watched closely by Wall Street for retail stocks — also came in weaker than what was anticipated.
Macy’s newly appointed CEO, Jeff Gennette, who succeeded Terry Lundgren in April, has said he’s focused on ending a two-year streak of declining comparable sales. Department stores continue to fight to keep pace with e-retailers and off-price chains that are drawing more customers their way.
One of Gennette’s goals, which he laid out shortly after starting his role, is to grow Macy’s own off-price brand, Macy’s Backstage. The CEO has said he sees Macy’s being able to compete with brands like Ross Stores, TJ Maxx and Nordstrom‘s Nordstrom Rack.
Macy’s is also in the midst of closing 100 stores due to their declining profitability. Meanwhile, the company plans to invest in its “highest-potential locations” and move “more aggressively in digital and mobile.”
Out of all the department store chains, Macy’s has had the toughest time clawing its way back after a rough start to 2017.
As of Wednesday’s close, shares of Macy’s have fallen 32 percent over the past 12 months, and the stock is down 36 percent since the start of the year.