Macys Cuts Full-Year Forecast as Earnings Jump 30%

Macy's reported its third-quarter earnings, surpassing estimates but cutting future forecasts. Despite a 1.4% decline in comparable sales, the company maintained its gross margin, which was unexpected given the aggressive discounting in the retail sector. Earnings per share were 61 cents, beating the 50-cent estimate. However, Macy's revised its full-year earnings forecast downwards, citing potential challenges in the fourth quarter. The company expressed optimism for the upcoming quarter, raising questions about the reasons behind the forecast cut.

What was the unexpected result in Macy's third quarter performance?

• Increase in gross margin

• Increase in comparable sales

• Decline in earnings per share

• Decline in comparable sales

How did Macy's manage its gross margin despite declining sales?

• By closing underperforming stores

• By maintaining some gross margin

• By reducing operational costs

• By increasing prices

What is unusual about Macy's gross margin maintenance?

• It resulted in higher operational costs

• It was achieved through increased sales

• It occurred despite aggressive discounting

• It led to a decrease in earnings per share

What is the new full-year earnings per share forecast for Macy's?

• $4.25 to $4.35

• $4.40 to $4.50

• $4.00 to $4.10

• $4.50 to $4.60

What is the main reason for Macy's forecast adjustment despite fourth quarter optimism?

• Expected operational cost reduction

• Expected increase in gross margin

• Anticipated increase in sales

• Anticipated discounting