Macy’s shares slumped, sales underwhelm as turnaround efforts continue

Macy's (NYSE:M) shares fell nearly 13% on Wednesday, losing $2.25 to $15.51, after missing revenue expectations for it second quarter.

The department store retailer reported positive profitability metrics but revenue was shy of Wall Street estimates.

Net sales for the quarter came in at $4.94 billion, some way below the forecast of $5.12 billion.

At the same time, Macy’s downgraded its full-year net sales forecast to a range of $22.1 billion to $22.4 billion, down from $22.3 billion to $22.9 billion.

Earnings (adjusted) per share was reported at 53 cents, actually better than the market consensus estimate of 30 cents.

The retailer, meanwhile, told investors it intends to double down on its ‘Bold New Chapter’ strategic initiative – which basically means closing underperforming stores, investing in digital sales, and boosting its top-performing store locations.

The underwhelming results come after Macy’s snubbed $6.9 billion private-equity buyout offer, in July, when it was deemed not to be in the best interest of shareholders.

In Wednesday’s statement, the retailer said: “The company continues to view 2024 as a transition and investment year, which includes investments in key customer-focused strategic initiatives.

“Supported by the company’s strong balance sheet, the company will continue to focus on enhancing gross margin and exercising expense control to protect profitability while navigating ongoing macro headwinds.”