Macy's Inc
Brick-and-mortar sales decreased 8%, and Digital sales dropped 10% Y/Y.
Comparable sales decreased 8.2% on an owned basis and down 7.3% on an owned plus licensed basis versus Q2 2022.
The operating margin was 2.3% versus 6.8% last year. Operating income for the quarter declined 68.9% to $124 million.
The gross margin was 38.1%, down 80 basis points from Q2 2022. Adjusted EBITDA was $347 million versus $616 million last year.
Adjusted EPS of $0.26 beat the analyst consensus of $0.13.
Macy's held $441 million in cash and equivalents as of July 29, 2023. Operating cash flow for six months totaled $271 million.
Inventory turnover, on a trailing twelve-month basis, was flat to 2022 and up 15% to 2019.
"Our teams surgically implemented clearance markdowns and promotions to effectively clear spring seasonal receipts and ensure fresh assortments for the fall and Holiday seasons," said chairman and CEO Jeff Gennette.
"We continue to see uncertainty in the macroeconomic environment."
Outlook: In light of ongoing macroeconomic pressures and uncertainty on when those will abate, the company continues to take a cautious approach on the consumer.
The company's FY23 sales outlook is unchanged at $22.8 billion - $23.2 billion, against the consensus of $23.17 billion.
The company's FY23 adjusted EPS forecast is unchanged at $2.70 - $3.20 versus the Street view of $2.89.
Price Action: M shares are trading lower by 6.38% at $13.79 in premarket on the last check Tuesday.
