Executive Summary

• Macy’s reported 2Q17 adjusted EPS of $0.48, beating the consensus estimate of $0.46. Total revenues declined by 5.4% year over year, to $5.55 billion, reflecting announced store closures.
• Comps were down 2.8% and down 2.5% on an owned-plus-licensed basis. The strongest categories were fine jewelry, fragrance, men’s apparel and women’s shoes.
• Management reiterated its prior full-year guidance. The company is projecting adjusted EPS of $3.37–$3.62 and expects revenues to be down 3.2%–4.3%. The company expects comps to be down 2.2%–3.3%, versus the consensus estimate of a 3.2% decline.