NEW YORK (TheStreet) -- Shares of Macy's Inc. (M) are down -5.62% to $56.40 on very heavy trading volume after the company earlier today lowered its full year same-store sales forecast, saying a 3.3% increase in second quarter sales would not compensate for first quarter weakness.
The retailer missed second quarter earnings estimates as net income was up 3.9% to $292 million, or 80 cents per share, from $281 million, or 72 cents, a year ago. However, analysts had estimated 86 cents on average, according to Bloomberg data
Second quarter sales at stores open at least a year climbed 3.4%, missing the 3.9% analysts had projected. The retail chain has had to rely on discounts and promotional events, such as its Friends and Family sale, to get customers in the door, eroding margins, Bloomberg said.
TheStreet's Julia Sun has the latest on Macy's Q2 results:
TheStreet Ratings team rates MACY'S INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACY'S INC (M) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."