Macy's Forecasts Flat Sales, EPS in Expected Range

Macy's projects Q4 2024 adjusted EPS between $1.40 and $1.65. While they anticipate net sales at the lower end of $7.8B to $8.0B, comparable sales remain flat. CEO Tony Spring indicates ongoing strategic improvements.

Date: 13-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Macy's has projected its adjusted earnings per share for the fourth quarter of 2024 to remain in-line with the prior expectations of $1.40 to $1.65. Considering that the EPS is within previously issued expectations, this reflects stability in earnings, which is encouraging for investors.

Net Income
The projected sales range indicates a cautious outlook, with guidance leaning towards the lower end of net sales expectations set between $7.8 billion and $8.0 billion. This could suggest potential challenges in achieving higher profitability, though it doesn't automatically indicate negative trends.

Comparable Sales Performance
Comparable sales have reportedly been roughly flat, with some non-First 50 locations performing below expectations, contributing to negative comparable sales. This flat performance could reflect ongoing struggles in capturing consumer spending, which is generally unfavorable for stock performance.

Conclusion
The information provided outlines a mixed outlook for Macy's stock. The stability in EPS projections offers a modest positive note. However, the flat comparable sales performance and anticipated low-end net sales paint a slightly negative scenario. The mixed news may keep investors cautious going forward, but the continuation of their strategic initiatives might signal a potential for improvement.

Stocks: M