National retail giant Macy’s reported results for the second quarter of 2018 and provided updated annual sales and earnings guidance for fiscal 2018.
For the second quarter, the company achieved earnings per diluted share of $0.53, or $0.70 excluding impairment and other costs, settlement charges and losses on the early retirement of debt. This compares to $0.36 per share in the second quarter of 2017, or $0.46 excluding settlement charges and gains on the early retirement of debt.
The company reported comparable sales on an owned basis that were flat in the second quarter of 2018 compared to the second quarter of 2017, although on an owned plus licensed basis, comparable sales were up 0.5 percent for the second quarter of 2018. Net sales in the second quarter of 2018 totaled $5.572 billion, a decrease of 1.1 percent, compared with net sales of $5.636 billion in the second quarter of 2017.
“Macy’s, Inc. delivered strong performance in the first half of the year, and we are pleased to report our third consecutive quarter of comparable sales growth,” said Jeff Gennette,Macy’s, Inc. chairman and chief executive officer. “Macy’s, Bloomingdale’s and Bluemercury all performed well. It is encouraging to see the continued strengthening of our brick & mortar business where we saw trend improvements across the portfolio, led by our Growth50 stores. The combination of healthy stores, robust e-commerce and a great mobile experience is Macy’s recipe for success”
Looking ahead, the company now expects adjusted earnings per diluted share of $3.95 to $4.15 in fiscal 2018, excluding anticipated settlement charges related to the company’s defined benefit plans as well as impairment and other costs. Total sales are expected to range from flat to a 0.7 percent increase in fiscal 2018. Comparable sales on an owned plus licensed basis are expected to increase between 2.0 and 2.5 percent for the second half of 2018, which translates to an annual increase of between 2.1 and 2.5 percent.
“Our strategic initiatives are gaining traction,” added Gennette. “They contributed to our first half results and will continue to have a positive impact on our performance in the back half of the year. Combined with continued strong execution and a healthy consumer spending environment, this gives us confidence to raise sales and earnings guidance for fiscal 2018. We have momentum in the business, powered by our 130,000 colleagues who are focused on how best to serve our customers every day.”