NEW YORK (AP) — Macy’s sales and profits fell during the first quarter as higher costs and other financial challenges had customers pulling back on spending. Yet the quarterly results announced Tuesday beat Wall Street expectations, and Macy’s raised its annual outlook for sales and profits, sending share up more than 3% in pre-market trading. Macy’s, which also operates upscale Bloomingdale’s and Bluemercury beauty chains, reported earnings of $62 million, or 22 cents per share for the quarter ended May 4.
That compares with $155 million, or 56 cents per share in the year-ago period. Adjusted per share earnings were 27 cents, much better than the 16 cents that Wall Street was looking for, according to a survey by FactSet. Revenue dipped 2.
7% to $4.85 billion, but that also topped analyst projections of $4.82 billion, Comparable store sales— those from online channels and from established stores — fell 1.
2%, excluding licensed businesses like cosmetics and its third-party marketplace. Macy’s comparable sales fell 1.6%.
Bluemercury comparable sales jumped 4.3% and Bloomingdale’s comparable sales rose 0.8%.
Americans are still spending but they’re getting more selective and are also more likely to wait until something goes on sale. Retailers are also seeing higher delinquency rates in their credit card businesses. Macy’s said Tuesday that its credit card revenues declined by $45 million to $117 million, in part due to higher delinquency rates.
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