Business

Macy’s earnings beat market buzz amid consumer spending pressures

Published

2 years ago

Farwa

Macy’s maintained its annual forecasts unchanged despite its second-quarter sales and profit topped market expectations as the luxury department store company anticipates continued pressure on consumer spending.

The retailer, like Target and Coach parent Tapestry, has seen a drop in demand from middle-income customers as they cut back spending on apparel and handbags amid elevated inflation, reported Reuters.

“In light of ongoing macroeconomic pressures and uncertainty on when those will abate, the company continues to take a cautious approach on the consumer,” Macy’s said in a statement.

It reaffirmed its 2023 sales expectations of $22.8 billion to $23.2 billion and adjusted full-year profit per share between $2.70 and $3.20.

Throughout the second quarter, Macy’s worked to clear excess inventory after a move to convert its merchandise for the spring and early summer hurt demand, forcing the Bloomingdale’s parent to cut its annual sales and profit forecasts in June.

Gross margin slipped to 38.1% from 38.9% a year ago.

For its higher-end beauty brand Bluemercury, Macy’s saw quarterly comparable sales rise 5.8%.

“Despite beating profit and sales expectations, Macy’s earnings show that discretionary demand remains constrained as shoppers allocate more of their budgets to everyday necessities,” Insider Intelligence analyst Rachel Wolff said.

Macy’s posted an adjusted net income of $71 million, or 26 cents per share, in the quarter ended July 29, beating expectations of 13 cents.

Comparable sales for Macy’s-owned and licensed stores fell 7.3%, compared with expectations of a 6.48% drop, according to Refinitiv data.

The Bloomingdale’s parent said credit card revenues fell to $120 million from last year’s $204 million, owing to a faster-than-expected rise in delinquencies rate.

The company’s shares, which have lost nearly 30% this year, were down about 1% in premarket trading.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

3 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

4 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.