Macy's: earnings forecast lowered, share price falls

(CercleFinance.com) - Department store chain Macy's on Wednesday lowered its earnings guidance for the year after reporting quarterly results broadly in line with expectations.


The New York-based group now says it expects adjusted earnings per share for fiscal 2024 of between $2.25 and $2.50, compared with a previous forecast of between $2.34 and $2.69.

Annual sales are expected to be between $22.3 and $22.5 billion, compared with a previous forecast of between $22.1 and $22.4 billion.

Net income for the third fiscal quarter ended November 2 fell to $28 million, compared with $41 million for the same period last year.

On a per-share basis, profit came to $0.04, just above the market consensus of $0.03.

Macy's had to postpone the publication of its financial statements, originally scheduled for the end of November, in order to incorporate the findings of an internet investigation into the actions of one of its employees.

With regard to this case, the retailer confirms that one of its employees, in charge of accounting for its delivery department, deliberately falsified data in order to conceal $151 million in unjustified expenses.

Macy's stresses, however, that this affair will have no impact on its net cash flow.

Following these announcements, the stock lost nearly 10% in pre-market trading on Wall Street.

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