Shoppers cram into a Macy’s store ahead of the holidays.
Charles Sykes | AP
Macy’s is set to report fiscal second-quarter earnings before the bell on Wednesday.
Here’s what analysts are expecting:
- Earnings per share: 45 cents, adjusted
- Revenue: $5.54 billion
- Same-store sales: up 0.4%, on an owned plus licensed basis
Department stores are increasingly under pressure with more people shopping online, renting clothes and accessories from places like Rent the Runway and buying directly from brands instead of going to the mall. Macy’s certainly hasn’t been immune to these struggles. Though the company has been trying to refresh its stores, amass more loyal customers through its updated app and membership program, and is adding stop-in shops to some locations for popular brands.
Credit Suisse already warned earlier this month department stores could be in for a “sobering” holiday season, calling out the fact that, at Macy’s in particular, the second quarter was “much more promotional than planned.”
Retailers also have been pressured by the threat of tariffs on a wide range of consumer goods made in China. A 10% tariff was set to go into effect on Sept. 1 on clothing, apparel and other items, but has been delayed until Dec. 15.
Macy’s shares are down more than 50% from a year ago. The stock, which is valued at $6 billion, fell to a 52-week low of $18.86 on Tuesday.
This is a developing story. Please check back for updates.