Executive Summary

• Macy’s reported 2Q18 adjusted EPS of $0.70, beating the $0.51 consensus estimate. Revenues were $5.57 billion, down 1.1% year over year but beating the consensus estimate of $5.55 billion.
• Comps increased 0.5%, comprising flat comps from owned stores plus comps of 0.5% from licensed departments, beating the consensus of a decline of 0.9%.
• Macy’s raised its full-year guidance for EPS to a range of $3.95–$4.15 (from $3.75–$3.95 previously) and for revenues to flat to 0.7% (from down 1% to up 0.5% previously.)