Macy’s (NYSE:M) earnings for the second quarter of fiscal year 2020 have M stock ticking higher on Wednesday. This comes after the company reported adjusted losses per share of 81 cents, which beat out Wall Street’s estimate of a $1.77 loss. Also, Macy’s reported revenue of $3.56 billion is above analysts’ estimate of $3.47 billion for the quarter.
Moreover, the company reported GAAP losses per share of $12.91 for the period.
Now, let’s take a closer look at the most recent Macy’s earnings report.
- Adjusted per-share losses are much worse from earnings per share (EPS) of 28 cents during the same time last year.
- Revenue comes in 35.9% lower than the $5.55 billion from the second quarter of 2019.
- Operating loss of $631 million is a big decline year-over-year from operating income of $155 million.
- The Macy’s earnings report also includes a net loss of $431 million.
- That’s a massive drop from the company’s net income of $86 million in the same period of the year prior.
Jeff Gennette, chairman and chief executive officer of Macy’s, said this in the earnings report:
“Macy’s, Inc. performance for the quarter was stronger than anticipated across all three brands: Macy’s, Bloomingdale’s and Bluemercury, driven largely by the sales recovery of our stores. Restarting our stores’ business was our top priority, and we successfully accomplished that while also ensuring that our digital business remained strong. Going into this crisis, we had a well-developed digital business and we’re seeing that thrive as we attract new and welcome existing customers back to our brands.”
Macy’s previously withdrew its outlook for the rest of FY2020, and will not be providing an update at this time. However, Gennette did state that although Q2 was encouraging, Macy’s will “continue to approach the back half of the year conservatively” — with the main focus on this year’s holiday season.
Meanwhile, we know what Wall Street is looking for from the retailer for FY2020. Analysts are calling for losses per share of $4.37 on revenue of $17.2 billion.
M stock was up 3.8% as of Wednesday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.