Macy's, Inc.  (M Quick QuoteM - Free Report) , one of the leading department store retailers, came out with second-quarter fiscal 2016 results, wherein adjusted earnings of 54 cents per share beat the Zacks Consensus Estimate of 40 cents but declined 15.6% from 64 cents per share delivered in the year-ago quarter.

For fiscal 2016, management anticipates earnings in the band of $3.15- $3.40 per share, in comparison to $3.77 per share earned in the fiscal 2015.

Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been stable over the past 30 days. If we look at the Macy's performance in the trailing four quarters (excluding the quarter under review), the company has missed the Zacks Consensus Estimate by an average of 3.9%.

Revenues: Macy's generated net sales of $5,866 million that declined 3.9% year over year but surpassed the Zacks Consensus Estimate of $5,749 million. Comparable sales on an owned plus licensed basis dipped 2% while on an owned basis, comparable sales fell 2.6%.

For fiscal 2016, Macy’s now projects comps on an owned plus licensed basis to decline in the band of 3–4% during fiscal 2016, while on an owned basis, comps are expected to be roughly 50 basis points below.

Key Events: As a part of store rationalization program, the company plans to shut down nearly 100 Macy’s full-line stores. The company is planning to close most of the stores in the early part of 2017.

Zacks Rank: Currently, Macy's carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

Stock Movement: Macy’s shares are up nearly 12% during pre-market trading hours following the earnings release.  

Check back later for our full write up on Macy's earnings report!

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