Macy’s turns a second-quarter profit, but sales are surprisingly weak as shoppers become more cautious

NEW YORK — Macy’s reported a profit in the second quarter but saw another sales decline as inflation-weary consumers cut spending and focused more on necessities.

The company, which also owns upscale department stores Bloomingdale’s and cosmetics chain Bluemercury, lowered its full-year sales forecast due to a “more discerning consumer” and the need to boost sales to attract them.

The company reported a profit of $150 million, or 53 cents per share, in the three months ended Aug. 3, beating Wall Street expectations for earnings of 30 cents per share, according to a FactSet survey. It also rebounded from a loss of $22 million, or 8 cents per share, in the same period a year ago.

However, sales fell nearly 4% to $4.94 billion, from $5.13 billion a year earlier, and fell short of the $5.06 billion that industry analysts had expected.

Shares fell 8% before the open on Wednesday.

Comparable sales — those from online and brick-and-mortar channels — fell 3.3%, including sales from licensed businesses like cosmetics and its third-party marketplace. That was worse than a 0.3% decline in the previous quarter.

Macy’s stores saw comparable sales fall 3.6%, while Bloomingdale’s saw a 1.4% decline. Same-store sales at Bluemercury rose 2%.

Macy’s had begun attracting potential buyers for the high-street chain, but last month the company halted months of buyout talks with two investment firms, saying the offer was insufficient and the financing uncertain.

Macy’s said the bidders, Arkhouse Management and Brigade Capital Management, had not provided any additional information by a June 25 deadline, including the highest price they would be willing to pay.

In April, Macy’s appointed two independent board members supported by Arkhouse, ending a battle to replace most of its board members and take over the chain.

Macy’s said it will manage the effort to turn around its results. That includes previously disclosed plans to close 150 Macy’s stores over the next three years and upgrade the remaining 350 stores.

In the first 50 Macy’s stores that were remodeled, same-store sales rose for two consecutive quarters, said Tony Spring, who became chairman and CEO this year.

Macy’s is also increasing its focus on luxury sales, which have generally performed better. Macy’s said it will open 15 upscale Bloomingdale’s stores and 30 luxury Bluemercury Cosmetics stores to meet the needs of customers looking for upscale services and goods.

The company reaffirmed its full-year earnings per share guidance but said full-year net sales would be between $22.1 billion and $22.4 billion. That’s down from its May forecast of $22.3 billion to $22.9 billion. Analysts had expected $22.53 billion, according to FactSet.

Macy’s also forecast comparable sales, which include licensed businesses and marketplace, to fall between 2% and 0.5%. That’s worse than its previous forecast in May, which called for a 1% decline to 1.5% increase.