NEW YORK - Macy’s Inc.’s first-quarter profit rose a better-than-expected 38 percent. But investors sent its shares down because the department store chain left its annual profit guidance intact.
Macy’s is the first in a series of major retailers reporting first-quarter results that should offer clues into what consumers are doing with their money.
The owner of Macy’s and Bloomingdale’s stores has outmatched many of its peers. But investors’ reaction - Macy’s shares fell 3.70 percent on the day - show they will dissect every merchants’ earnings report amid increasing worries about an economic slowdown.
“Macy’s is doing really well, but the market may have been expecting them to do even better,’’ said Brian Sozzi, chief equities analyst at NBG Productions, an independent research firm. “It comes at a time when concerns about consumer spending are being ratcheted up.’’
Macy’s, based in Cincinnati, said that its net income rose to $181 million, or 43 cents per share, for the three-month period ended April 28.
That is up from $131 million, or 30 cents per share, a year ago.
Revenue rose 4.3 percent to $6.14 billion from $5.89 billion a year ago.
Analysts surveyed by FactSet had expected earnings of 40 cents per share on revenue of $6.14 billion.