Macy’s is set to report fiscal third-quarter earnings before the bell on Wednesday.
Here’s what analysts are expecting, based on a survey by Refinitiv:
* Earnings per share: 14 cents
* Revenue: $5.41 billion
* Same-store sales: up 2.8 percent, on an owned plus licensed basis
Hoping to avoid the same fate as now-bankrupt Sears, Macy’s has been testing new technology and other concepts in stores to lure shoppers and grow sales.
The department store chain is adding mini marketplaces to some locations to sell goods from lesser-known and local brands. It’s adding virtual reality devices to stores to let shoppers try on make-up virtually or browse the web for furniture while wearing a headset. All of Macy’s stores are also expected to be equipped with mobile checkout by the end of the year.
The company, meanwhile, has been adding its off-price brand, Macy’s Backstage, to existing full-line shops to compete with the likes of TJ Maxx, Nordstrom Rack and Ross Stores. Macy’s has said stores with Backstage see two times more shopping trips, with basket sizes up an average of 30 percent.
Macy’s is also starting to experiment with smaller stores, hoping to trim staffing and inventory costs. Retailers including Kohl’s, Nordstrom and Target have either opened smaller locations or trimmed larger ones in recent months, as more people shop online.
Looking to the full year, Macy’s has said it anticipates earning $3.95 to $4.15 per share, with same-store sales rising as much as 2.5 percent. Heading into the key holiday quarter, analysts want to see how Macy’s is able to manage inventory, keep promotions in check and run a profitable business online.
As of Tuesday’s market close, Macy’s shares have rallied more than 80 percent from a year ago.
This is a developing story. Please check back for updates.
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