Executive Summary

• Macy’s fiscal 2Q19 revenues were $5.55 billion, down 0.5% year over year and even with the consensus estimate. The company reported 2Q19 adjusted EPS of $0.28, down 47.2% from the year-ago period and lower than the consensus estimate of $0.46.
• The company saw comparable sales growth of 0.2% on an owned basis compared to the consensus estimate of 0.4%, and 0.3% on an owned plus licensed basis, even with the consensus estimate.
• For FY19, management lowered EPS guidance to $2.85-3.05 from $3.05-3.25 and compared to the consensus estimate of $3.05. The company reaffirmed flat net sales growth guidance and said it anticipates comparable sales growth of flat to 1% for owned stores and owned and licensed stores.