Macy’s Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Macy’s Inc. (NYSE:M) reported net income above Wall Street’s expectations for the second quarter. Macy’s, Inc. is a retailer that sells apparel and accessories, cosmetics, home furnishings and other consumer goods.

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Macy’s Earnings Cheat Sheet for the Second Quarter

Results: Net income for the department store rose to $241 million (55 cents per share) vs. $147 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 63.9% from the year earlier quarter.

Revenue: Rose 7.3% to $5.94 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: M beat the mean analyst estimate of 47 cents per share. Analysts were expecting revenue of $5.86 billion.

Quoting Management: “This was our most successful second quarter and spring season in more than a decade. Importantly, it came on top of an impressive first half performance last year. To date this year, we have driven significant additional sales growth, gained market share, maintained strong margins, managed expenses and generated a very healthy level of cash,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer.

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 12 cents in the first quarter, by 8 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Gross margin shrank 0.2 percentage point to 41.8%. The contraction appeared to be driven by increased costs, which rose 7.6% from the year earlier quarter while revenue rose 7.3%.

Revenue has risen the past four quarters. Revenue increased 5.7% to $5.89 billion in the first quarter. The figure rose 5.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 6.6% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Saks Incorporated (NYSE:SKS), J.C. Penney Company, Inc. (NYSE:JCP), Kohl’s Corporation (NYSE:KSS), Nordstrom, Inc. (NYSE:JWN), Dillard’s, Inc. (NYSE:DDS), Sears Holdings Corporation (NASDAQ:SHLD), The Bon-Ton Stores, Inc. (NASDAQ:BONT), Target Corporation (NYSE:TGT), Wal-Mart Stores, Inc. (NYSE:WMT), and The TJX Companies, Inc. (NYSE:TJX).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)