Macy's ( M ) shares fell 5% in premarket trading after the quarterly earnings failed to match expectations. Macy's reported profits of 80 cents per share, a level that was below the Zacks Consensus Estimate of 86 cents per share. Macy's is currently trading at $57.33 per share at mid-morning trading, down about 4.7% for the day on extremely high volume.
In comparison to this quarter's earnings of 80 cents per share on $6.27 billion in revenue, Macy's reported earnings of 72 cents per share on $6.07 billion dollars of revenue this time last year. Gross margin decreased .4% from 41.8% this time last year to 41.4% for this past quarter, indicating they are generating less profit per dollar which should worry investors.
"We are approaching the second half of 2014 with confident optimism in our business strategies, merchandise assortments and marketing plans, tempered with the reality that many customers still are not feeling comfortable about spending more in an uncertain economic environment," Macy's Chairman and CEO Terry J. Lundgren said in a release.
Read more about recent retail earnings here: Data Informs Retail Earnings Season
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