Operationally, the company has made big improvements. The problem, at least for me, is that I can't shake the feeling that Macy's is a sinking ship. Based on the midpoint of the company's new guidance range for adjusted EPS, the stock trades for less than 5 times earnings. Macy's stock looks extremely inexpensive. Macy's doesn't have a ton of debt - just under $3 billion - and the company is now valued below book value. The balance sheet is also reasonably strong.

Inventory stood at $4.6 billion at the end of Q1, down from nearly $5 billion one year prior. One positive for Macy's is that inventory levels have come down over the past year.

Comparable-sales change between negative 7.5% and negative 6%.įor reference, Macy's reported revenue of $24.4 billion and adjusted EPS of $4.48 in 2022.

Revenue between $22.8 billion and $23.2 billion.Here's the company's new outlook for the year: With a tumultuous Q1 in the books, and with increased markdown activity ahead, Macy's is now much less optimistic. Adjusted earnings per share (EPS) between $3.67 and $4.11.Comparable-sales change between negative 4% and negative 2%.Revenue between $23.7 billion and $24.2 billion.Slashing the outlookīack in March, Macy's laid out the following outlook for 2023: The bad news is that profits are down considerably, and 2023 is going to be a tougher year than the company originally envisioned.

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