On Wednesday, Macy’s Inc (NYSE:M) reported third-quarter sales of $4.74 billion, beating the consensus of $4.72 billion.

Macy’s net sales decreased 2.4%, with comparable sales down 2.4% on an owned basis and down 1.3% on an owned-plus-licensed-plus-marketplace basis.

Sales growth at Macy’s First 50 locations, Bloomingdale’s, and Bluemercury was offset primarily by weakness in Macy’s non-First 50 locations, digital channels, and cold weather categories.

Also Read: Macy’s Delays Q3 Earnings Report Amid Investigation Over $154M Accounting Scandal; Stock Dips

Macy’s go-forward business comparable sales were down 2.0% on an owned basis and down 0.9% on an owned-plus-licensed-plus-marketplace basis.

Bloomingdale’s net sales were up 1.4%, with comparable sales up 1.0% on an owned basis and up 3.2% on an owned-plus-licensed-plus-marketplace basis. Key drivers included strength in contemporary apparel, beauty, and digital.

Bluemercury net sales were up 3.2%, and comparable sales were up 3.3% on an owned basis.

“Our third quarter results reflect the positive momentum we are building through our Bold New Chapter strategy,” said Tony Spring, chairman and chief executive officer of Macy’s.

“We are encouraged by the consistent sales growth in our Macy’s First 50 locations and the strong performance of Bloomingdale’s and Bluemercury. Quarter-to-date, comparable sales continue to trend ahead of third-quarter levels across the portfolio.”

In November, the department store chain delayed its Q3 earnings release to allow for the completion of an independent investigation.

In its Q3 earnings release, the company said it identified that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries to hide approximately $151 million of cumulative delivery expenses from the fourth quarter of 2021 through the third quarter of 2024

The retailer reported adjusted EPS of $0.04, down from $0.21 a year ago, beating the consensus of $0.03.

Guidance: Macy’s expects 2024 sales of $22.3 billion—$22.5 billion, compared to prior guidance of $22.1 billion—$22.4 billion and a consensus of $22.42 billion.

The company expects a 2024 comparable owned-plus-licensed-plus-marketplace sales change of Down ~1.0% to ~flat versus 2023 versus Down ~2.0% to down ~0.5% expected earlier.

Macy’s expects 2024 adjusted EPS of $2.25-$2.50 compared to prior guidance of $2.34-$2.69 and a consensus of $2.73, including accounting error.

Price Action: At last check on Wednesday, M stock was down 10.3% at $14.99 during the premarket session.

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