What Macy's Got Right in Q1

Macy’s sales surge thanks to tourist shoppers

Zacks Investment Research raised shares of Macy's from a hold rating to a buy rating and set a $28.00 target price on the stock in a research note on Wednesday, January 10th. Following the sale, the executive vice president now owns 10,000 shares of the company's stock, valued at $294,200. The company reported $2.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.71 by $0.11. Excluding one-time items, it earned 48 cents per share.

And this timing shift likely means second-quarter results are going to look relatively weak compared to a year earlier.

Net sales rose 3.6 percent to $5.54 billion in the quarter. At owned and licensed locations, they climbed 4.2 percent.

Gennette, who took over for longtime Macy's CEO Terry Lundgren in March 2017, added that consumer spending remained "healthy" and that there were "significant improvements in worldwide tourism". "The winning formula for [Macy's] is a healthy brick-and-mortar business, robust e-commerce and a great mobile experience".

The retailer once again posted double-digit sales growth from digital sales, thanks in part to improvements the company has made to its website and app.

On the call, Gennette attributed some of the gains to a 10 percent uptick in worldwide tourism spending, along with what he called "a very healthy inventory position", indicating that the retailer has made better merchandising decisions and relied less on discounting to sell through product. The firm had revenue of $5.54 billion for the quarter, compared to the consensus estimate of $5.39 billion. Manning & Napier Group LLC increased its holdings in Macy's by 49.0% during the first quarter. Following the transaction, the chief financial officer now owns 67,515 shares in the company, valued at $1,984,265.85.

At the same time, Gennette added, Macy's is doing a good job of managing its inventory, and new merchandising strategies are showing results.

HTC working on blockchain-powered smartphone called 'Exodus' to support cryptocurrency transactions
It's quite likely that the future phones will be readied with blockchain and generic cryptocurrency compatibility in mind. The device is the brainchild of Phil Chen , who was the driving force behind the HTC Vive virtual reality headset .

The company reported its second straight quarter of higher sales at existing stores after a three-year funk.

The company is raising its profit guidance for fiscal 2018.

Net income attributable to Macy's, Inc. shareholders for the first quarter of 2018 totaled $139 million, or 2.5 percent of sales, contrast to $78 million, or 1.5 percent of sales, for the first quarter of 2017. Sales, earnings, and cash flow all came in ahead of what the company predicted, prompting the retailer to raise its outlook for the rest of the year. Net cash used by financing activities in the first quarter of 2018 was $99 million, contrast with $273 million past year. Instead, Macy's will remain on TMall platform of Alibaba and focus its efforts there. The Macy's e-commerce team in San Francisco will manage the ongoing China business with operational support from Fung Omni in Shanghai.

" The future danger is that many of these dynamics will not hold as Macy's moves through the fiscal year", Saunders wrote.

The department store operator now projects full-year adjusted earnings per share within the range of $3.75-$3.95, or a revision up from a range of $3.55-$3.75 per share, as expected previously.

Total sales rose 3.6 percent, to $5.54 billion, as the company is beginning to reap the rewards of its turnaround plan - which includes an enhanced loyalty program.

Related News:

  • OnePlus 6: Notches Are Not For Everyone!

    OnePlus 6: Notches Are Not For Everyone!

    It's D-day for OnePlus , the Chinese smartphone maker, as it prepares to unveil its latest flagship of 2018- the OnePlus 6 . In India, the OnePlus 6 pop-ups will take place between 3:30PM-8PM on 21st May, and between 11AM-7PM on 22nd May.
    Tesla expected to halt production for six days

    Tesla expected to halt production for six days

    Tesla said it was "deeply saddened" by the accident and was working with local authorities to establish the cause. Tesla faces a slew of other issues, from increased skepticism over its finances to safety probes by regulators.
    Palestinian envoy recalled from Washington over Israeli embassy move

    Palestinian envoy recalled from Washington over Israeli embassy move

    Both these resolutions affirm that Jerusalem would be the capital of the future Palestinian State and the State of Israel . Israel's army said that "it appears that at least 24" of those killed were militants, mainly from Hamas and Islamic Jihad.
  • Sharif compares Afghanistan, Pakistan's narratives in the wake of isolation

    Sharif compares Afghanistan, Pakistan's narratives in the wake of isolation

    Sharif also said in the interview that Pakistan's failure saw it getting isolated in world affairs despite making sacrifices. He had questioned why his country had not been able to complete the trial in the case yet.
    Turkey's President Erdogan wraps up first official United Kingdom  visit

    Turkey's President Erdogan wraps up first official United Kingdom visit

    Erdogan, who is seeking another term, has been ruling Turkey for the last one and a half decades. Ozil plays for UK's Premier League club Arsenal and Gundogan for Manchester City.
    'Religious bigot' wrong man to give Jerusalem embassy prayer - Romney

    'Religious bigot' wrong man to give Jerusalem embassy prayer - Romney

    Trump has been criticized for announcing plans to relocate the embassy and for formally recognizing Jerusalem as Israel's capital. Hagee caused John McCain headaches during his 2008 presidential campaign when Hagee's anti-LGBTQ rhetoric became widely known.
  • Lachlan Murdoch to head new Fox as chairman, CEO

    Lachlan Murdoch to head new Fox as chairman, CEO

    The new entity will be formed after shareholder and regulatory approval of the proposed transaction between 21CF and Disney . Comcast, the largest USA cable channel, is said to be preparing financing for a potential counterbid for the Fox operations.
    BSF foils infiltration bid in J&K's Mangu Chak area

    BSF foils infiltration bid in J&K's Mangu Chak area

    The DG BSF noted there is large number of terrorists waiting on the launching pads across to sneak into J&K. The BSF chief said the militants had sneaked in using a tunnel.
    Vodafone falls 3% on CEO resignation

    Vodafone falls 3% on CEO resignation

    Analysts said the timing of the departure should come as no surprise and that investors should be reassured by Read's appointment. The company added over 1 crore pre-paid customers but lost 5.76 lakh contract or post-paid customers in the January-March period.
  • Pennsylvania races for governor, US Senate, key House seats

    Pennsylvania races for governor, US Senate, key House seats

    He also has a huge cash advantage, with about $10 million in the bank at the end of April, compared with Barletta's $1.3 million. Wealthy philanthropist Scott Wallace and military veteran Rachel Reddick are the leading candidates in the Democratic primary.
    Cameron Smith retires from representative rugby league

    Cameron Smith retires from representative rugby league

    His departure follows Johnathan Thurston and Cooper Cronk's retirements past year from the representative level. Maroons coach Kevin Walters joked he would have liked Smith to play on in "30-minute spells".
    Tech and health care drop stocks lower; bond yields rise

    Tech and health care drop stocks lower; bond yields rise

    Markets focused early on economic reports with sales at USA retailers rising for a second straight month in April. Germany's DAX fell 0.1 percent after new data showed the country's economy slowed in the first quarter.


Most liked

US, China to resume talks in bid to avert trade war
Navarro also anxious that Mnuchin is leading the administration down the wrong path on trade with China, said the source briefed on the trip.

Xbox Adaptative Controller official, designed for gamers with limited mobility
We couldn't be prouder to have their support in introducing the Xbox Adaptive Controller. The Xbox Adaptive Controller is headed our way.

Deadpool crashes the "Late Show" and trash-talks Trump
Fans are going to be very happy and I expect we'll be hearing news about a fourth installment any day now. Despite my many attempts to give the genre a chance, I've accepted that it's just not my cup of tea.

Nick Cave and Warren Ellis to score new Adnan Syed TV Series
The Case Against Adnan Syed (4×60') is from Academy Award-nominated director Amy Berg ( Deliver Us From Evil , West of Memphis ). Nick Cave will provide original music and it will be exec produced by Khan, Conrad, Eric Fellner, Tim Bevan and Andrew Stearn.

Trump lawyer Cohen reportedly sought $1 million from Qatar in 2016
The White House did not respond to requests for comment to clarify the reason for Mr Trump's payment to Mr Cohen. And David Apol, director of the Office of Government Ethics, referred the matter to the Justice Department.

The Crew 2 Closed Beta Launches This Month
Forget what you know about the first game, though, The Crew 2 is a far bigger, more ambitious prospect than its forebear. Pre-loading will begin on May 29 for all players that qualify, so you can be ready to go once the beta starts.

Trump says Melania 'doing really well'
President Trump made an unscheduled visit to check on First Lady Melania Trump in the hospital Tuesday afternoon. That could mean that doctors are checking for a lung disease associated with angiomyolipomas, he said.

Stalker 2 is in development (again)
With a story that includes supernatural influence its no wonder how this game has garnered the fame that it has. A website recently popped up online displaying only an image that says S.T.A.L.K.E.R.2 and 2.0.2.1.

Apple's California Self-Driving Car Test Fleet Continues to Grow
Apple's quickly growing fleet of cars suggests that it's certainly taking self-driving development seriously. Behind Apple lags Waymo , which has 51 vehicles registered in California, and Tesla , which has 39 vehicles.

GDP marks first contraction in 9 quarters
Stock market traders appeared to be disappointed by the data, however, with the main Nikkei stock index closing down 0.44 per cent.

J&K: CRPF jawan killed, 3 fleeing terrorists steal his rifle
Two houses were damaged during the gunfight and owner of one of the houses Bashir Ahmad suffered an injury in his shoulder. Locals were seen pelting stones at the security forces.

The Home Depot (HD) Gains Outperform Rating from Analysts at Wells Fargo
After this sale, 56,155 common shares of HD are directly owned by the insider, with total stake valued at $10,730,097. In the transaction dated February 23, 2018, the great number of shares disposed came courtesy the EVP - U.S.

Britain's Lewis Hamilton wins Spanish Grand Prix
Ferrari have had the best auto so far this year, but Spain marked a turning point with Mercedes dominating throughout the weekend. Verstappen then hit back of Sirotkin, but despite sustaining damage to his front wing, held off Vettel with relative ease.

Brooklyn Nine-Nine: Season Six; FOX & NBC Talk Cancellation & Revival
However, he added , "We love when fans yell and scream on Twitter , but we hope that transfers and they watch the show". This strategy would work best with a non-serialized show that doesn't have much of a barrier to entry for new viewers.

Boeing: WTO Ruling Could Lead To Biggest Retaliatory Tariffs Ever
It shatters Boeing's claim it perpetuated for years that their WTO case undermines European industrial-government partnership". Boeing has estimated that it suffered commercial damages worth between US$7 billion and US$10 billion as a result.