Macy’s Posts Earnings Beat, but Guidance Disappoints

Macy’s (M) beat analysts’ earnings expectations, but its guidance proved disappointing and the stock fell 5.2% in morning trading.

Macy’s posted 32 cents of EPS, 16 cents better than expectations. Gross margin fell 49 basis points to 39.4%, although the company’s operating margin grew.

“Macy’s performance during the quarter was driven by the continued execution of its three key initiatives (My Macy’s, Omnichannel Integration, and Magic Selling), as well as strong proprietary credit performance,” writes Citi analyst Deborah Weinswig.

But the retailer’s fourth quarter earnings guidance of 1.52 to 1.57 was below analysts’ consensus expectations. Analysts had been expecting $1.66.

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