MW Macy's stock sinks after profit outlook cut, expense misstatements led to revised results

Shares of Macy's Inc. $(MIMI)$ took an 8% dive in premarket trading Wednesday, after the department-store chain cut its full-year profit outlook, and said it revised past financial statements due to previously disclosed misstated delivery expenses. The company said it now expects fiscal 2024 adjusted earnings per share of $2.25 to $2.50, down from pervious guidance of $2.55 to $2.90, as the gross margin rate outlook was lowered to 38.2% to 38.3% from 39% to 39.2%. For the fiscal third-quarter to Nov. 2, Macy's reported net income that fell to $28 million, or 10 cents a share, from $41 million, or 15 cents a share, in the same period a year ago. Excluding nonrecurring items, such as the delivery-expense adjustment, adjusted earnings per share of 4 cents topped the FactSet consensus of 3 cents. The company also reported fiscal third-quarter sales that were in line with the preliminary results released on Nov. 25. The company said it revised its financial statements for the fiscal years of 2021, 2022 and 2023. And the total misstated delivery expense for the first half of fiscal 2024 was $9 million, which was adjusted in total during the third quarter. the stock has tumbled 16.9% year to date through Tuesday, while the S&P 500 has rallied 26.5%.

-Tomi Kilgore

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December 11, 2024 07:12 ET (12:12 GMT)

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