What Macy's Got Right in Q1

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What Macy's Got Right in Q1

A number of analysts expressed concern about the retailer heading into earnings, but those concerns have proven to be off the mark. American International Group Inc. now owns 23,923,612 shares of the company's stock worth $602,636,000 after purchasing an additional 11,894,858 shares during the last quarter. On an owned-plus-licensed basis, comparable sales were up 4.2% in this quarter. The department store retailer's operating income increased almost 8.7% year over year to $238 million, or about 4.3% of sales. The fund bought 7,448 shares of the company's stock, valued at approximately $222,000.

After a good holiday season, there was a question as to whether Macy's could continue to deliver a recovery...

With proceeds from asset sales excluded, company earnings per diluted share were 42 cents versus 12 cents in the first quarter of 2017.

Other institutional investors and hedge funds have also made changes to their positions in the company. Jefferies Group reiterated a "hold" rating on shares of Macy's in a report on Tuesday, February 27th. Revenue is seen down 1% to up 0.5%, up from a prior view of down 0.5%-2%. The stock has a market capitalization of $9.03 billion, a P/E ratio of 7.94, a P/E/G ratio of 0.96 and a beta of 0.73.

Net income attributable to Macy's shareholders almost doubled to $139 million, or 45 cents per share, in the first quarter ended May 5. This is up 3.6% from its revenue of $5.35 billion that was reported in the first quarter of the previous year. Macy's had a net margin of 6.23% and a return on equity of 24.93%. The business's quarterly revenue was up 1.8% compared to the same quarter past year. Macy's has also boosted its guidance for the rest of the year, as the company has increased expected full-year earnings per share by 20 cents to a range of $3.75 to $3.95.

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. In recent weeks, the company acquired the retail concept Story, an acquisition that brought with it a much-talked-about innovator in founder Rachel Shechtman, and also announced it has broadened its loyalty program beyond credit card holders and expanded its off-price Backstage business.

Morgan Stanley analyst Kimberly Greenberger downgraded Macy's to "underperform" last week, basically a "sell" rating. Deutsche Bank lifted their price target on shares of Macy's from $27.00 to $28.00 and gave the stock a "hold" rating in a report on Monday, February 26th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of "Hold" and a consensus price target of $26.60.

Macy's (NYSE:M) issued its earnings results on Wednesday. "We're getting better sell-throughs and we're getting better value on it". Following the completion of the sale, the director now owns 16,184 shares in the company, valued at $473,382. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

In related news, CFO Karen M. Hoguet sold 67,515 shares of Macy's stock in a transaction on Thursday, March 1st. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Apart From this, the company estimates that comparable sales were up 1.7 percent on an owned plus licensed basis. Wall Street is looking for earnings per share of $3.61 for 2018. While there's no doubt that Macy's has had its struggles in the past, the company is beating expectations now, and now is what investors care about.

Macy's, Inc., is an omni-channel retail company that operates outlets, mobile applications, and websites.

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