Executive Summary

• Macy’s reported adjusted 3Q17 EPS of $0.23, up 35.3% year over year and beating the $0.19 consensus estimate. Revenues were $5.28 billion, down 6.1% year over year and roughly in line with the $5.31 billion consensus estimate.
• Comps (on an owned basis) declined by 4.0%, below the consensus estimate of a 2.8% decline. Comps on an owned-and-licensed basis declined by 3.6%.
• Macy’s reaffirmed its full-year sales and EPS guidance. The company expects sales to decline by 3.2%–4.3% and expects adjusted EPS of $3.37–$3.62 versus the $3.32 consensus estimate.