Why Macy's (M) Shares Are Sliding Today - Macy's (NYSE:M)

Macy's Inc (NYSE: M) reported a first-quarter FY23 sales decline of 7% year-on-year to $4.98 billion, missing the analyst consensus estimate of $5.04 billion.
Comparable sales decreased 7.9% on an owned basis and down 7.2% on an owned plus licensed basis versus Q1 2022.
The operating margin was 4.7% versus 8.3% last year. Operating income for the quarter declined 47.3% to $244 million.
The gross margin was 40%, up 40 basis points from Q1 2022. Adjusted EBITDA was $468 million versus $684 million last year.
Adjusted EPS of $0.56 beat the analyst consensus of $0.45.
Macy's held $603 million in cash and equivalents as of Apr. 29, 2023. Operating cash flow for the quarter totaled $105 million.
On May 31, 2023, the board of directors declared its regular quarterly dividend of $0.1654 per share, payable July 3, 2023, to shareholders of record as of the close of business on June 15, 2023.
Inventory turnover, on a trailing twelve-month basis, was down 2% to 2022 and up 14% to 2019.
"We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories," said chairman and CEO Jeff Gennette.
Outlook: Macy's said it is taking a cautious approach to the remainder of the year and is reducing its annual 2023 sales and earnings guidance to reflect anticipated macroeconomic impacts to the consumer.
M lowered FY23 sales outlook to $22.8 billion - $23.2 billion (prior $23.7 billion - $24.2 billion), against the consensus of $24 billion.
The company lowered the FY23 adjusted EPS outlook to $2.70 - $3.20 (prior $3.67 - $4.11) versus the Street view of $3.69.
Price Action: M shares are trading lower by 8.76% at $12.40 in premarket on the last check Thursday.

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Why Macy's Shares Are Sliding Today