Financial Data and Key Metrics Changes - Net sales declined by 4.1% and comparable sales decreased by 3.9% in the quarter, attributed to the closure of 24 stores [26][27] - Gross margin increased to 39.9%, up 37 basis points year-over-year, driven by category mix benefits and inventory management [30] - SG&A expenses decreased by 5.2% to $1.2 billion, leveraging approximately 32 basis points compared to last year [30] - The company reported a net loss of $15 million, with earnings per diluted share of negative $0.13, a 46% improvement from the previous year [31] Business Line Data and Key Metrics Changes - Jewelry sales increased by 10% in Q1, primarily driven by Kohl's card customers, following the reintroduction of jewelry into stores [15][16] - Women's apparel is being rebalanced to improve performance, focusing on essentials and proprietary brands [17][19] - Sephora's net sales were up 6% and comparable sales increased by 1% in Q1, contributing to a nearly $2 billion beauty business [18] - The impulse queue line rollout is expected to enhance sales, with plans to expand to nearly all stores by Q3 [18] Market Data and Key Metrics Changes - The digital business saw a sales decline of 7.7% in the quarter, underperforming compared to store sales, which declined by 2.6% [27][28] - The middle and low-income customers are under pressure, prioritizing value and trading down to lower-priced products [28] Company Strategy and Development Direction - The company is focused on three key areas: offering a curated assortment, reestablishing value and quality, and enhancing the omnichannel shopping experience [12][19][23] - Plans for 2025 include improving product assortment clarity and investing in proprietary brands to better serve customer needs [13][19] - The company aims to enhance promotions by including more brands in coupon eligibility, responding positively to customer feedback [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing transformation and the need to align the business with customer needs, particularly focusing on value [40][41] - The company is navigating a fluid environment with uncertainties, particularly affecting middle-income customers [43][44] - Despite challenges, management remains optimistic about achieving financial guidance for the year, with expectations of comparable sales down 4% to 6% [36] Other Important Information - The company completed a private offering of $360 million in senior secured notes, expected to close on May 30, to refinance upcoming debt maturities [34][35] - Inventory strategies are being implemented to manage tariff pressures, with expectations of inventory down high single digits by year-end [32][36] Q&A Session Summary Question: Any adjustments to strategic priorities and what will it take to return to comp growth? - Management does not foresee major changes to the strategy and emphasizes understanding customer needs to restore growth [39][40] Question: Insights on quarter-to-date trends and tariff impacts? - Management holds the full-year guidance due to uncertainties and notes consistent performance with some weather-related impacts [42][44][46] Question: Breakdown of gross margin increase and private label performance? - The increase in gross margin is attributed to a favorable category mix and improved inventory management, with proprietary brands expected to enhance margins [50][52] Question: Assessment of store footprint and potential closures? - The company has a healthy store base and will continue to evaluate store performance, with closures being part of regular hygiene [60][62] Question: Update on Sephora collaboration and operating environment? - Sephora is now present in all stores, and while comp growth has moderated, the company is pleased with market share gains in beauty [73][75] Question: E-commerce performance and profitability outlook? - Digital sales declined but are expected to improve as core customers return, with profitability being lower than stores due to shipping costs [80][84]

Financial Data and Key Metrics Changes - Net sales declined by 4.1% and comparable sales decreased by 3.9% in Q1 2026, attributed to the closure of 24 stores [24][25] - Gross margin increased to 39.9%, up 37 basis points year-over-year, driven by category mix benefits and inventory management [27] - SG&A expenses decreased by 5.2% to $1.2 billion, leveraging approximately 32 basis points compared to last year [27] - The company reported a net loss of $15 million, with earnings per diluted share of negative $0.13, a 46% improvement from the previous year [27] Business Line Data and Key Metrics Changes - Jewelry sales increased by 10% in Q1, primarily driven by Kohl's card customers, following the reintroduction of jewelry and the rollout of 200 fine jewelry shops [14][15] - Women's apparel underperformed, prompting a focus on delivering more depth in essentials and improving assortment clarity [15] - The Sephora business saw net sales up 6% and comparable sales up 1% in Q1, contributing to a nearly $2 billion beauty business [16] - The petites business performed well, up in the high teens, driven by new brand introductions [15] Market Data and Key Metrics Changes - Digital sales declined by 7.7% in Q1, with the digital business over-penetrating in the home category, which underperformed [25][26] - The store channel outperformed with a comparable sales decline of 2.6% [25] - The company continues to see strong sales from new and non-Kohl's card customers, while Kohl's card customer performance lags [26] Company Strategy and Development Direction - The company is focused on three key areas: offering a curated assortment, reestablishing itself as a leader in value and quality, and enhancing the omnichannel shopping experience [12][17][21] - Plans include the rollout of 105 Sephora small format shops and the expansion of impulse queue lines to nearly all stores by Q3 [16][21] - The company aims to improve proprietary brand penetration, which is currently at an all-time low of around 30% [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced by middle-income customers and emphasizes the need to focus on value to restore customer confidence [36][61] - The company is navigating a fluid environment with uncertainties, particularly regarding tariffs, but remains committed to achieving its financial guidance for the year [40][32] - Management expressed optimism about the initial results from recent strategic changes and expects to continue momentum throughout the year [23] Other Important Information - The company ended the quarter with $153 million in cash and cash equivalents and expects inventory to be down by high single digits by year-end [28] - Capital expenditures for the quarter were $110 million, with expectations to spend $400 million to $425 million for the year [28] - The company completed a private offering of $360 million in senior secured notes to refinance upcoming debt maturities [29][30] Q&A Session Summary Question: Any adjustments to strategic priorities and what will it take to return to comp growth? - Management indicated no major changes to the strategy and emphasized the need to align the business with customer needs, particularly focusing on value [35][36] Question: Insights on quarter-to-date trends and tariff impacts? - Management noted consistent performance with improvements in regular price selling, while holding guidance due to uncertainties in the environment [38][40] Question: Breakdown of gross margin increase and private label performance? - The increase in gross margin was attributed to a mix benefit and improved inventory management, with proprietary brands expected to enhance margins [47][48] Question: Assessment of store footprint and potential closures? - Management stated that the store base is healthy, with ongoing evaluations for potential closures and relocations based on lease expirations [56][58] Question: Update on Sephora collaboration and operating environment? - The rollout of Sephora is complete in all stores, with positive performance noted in fragrance and hair care categories [68][70] Question: E-commerce performance and profitability outlook? - Digital sales are expected to improve progressively, with profitability impacted by shipping costs, but overall management is pleased with expense management [76][78] Question: Margin pressure from tariffs and guidance assumptions? - Management believes they can mitigate most tariff pressures and has factored this into their guidance for the year [80][82]

Kohl’s Corporation KSS will release its first-quarter earnings results before the opening bell on Thursday, May 29.Analysts expect the Menomonee Falls, Wisconsin-based company to report a quarterly loss at 22 cents per share, versus a year-ago loss of 24 cents per share in the year-ago period. According to data from Benzinga Pro, Kohl’s projects to report quarterly revenue at $3.06 billion, compared to $3.18 billion a year earlier.On May 15, Kohl’s announced the pricing of private offering of $360 million o ...

Core Insights - Macy's, Inc. reported first-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although both metrics declined compared to the previous year [1][3] Financial Performance - Adjusted earnings were 16 cents per share, surpassing the Zacks Consensus Estimate of 14 cents, but down 40.7% from 27 cents in the prior year [3] - Net sales reached $4,599 million, exceeding the consensus estimate of $4,458 million, but decreased by 5.1% year over year [3] - Comparable sales fell by 2% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis compared to the previous year [3] Brand Performance - Macy's brand comps declined by 2.9% on an owned basis and 2.1% on an owned-plus-licensed-plus-marketplace basis [6] - Bloomingdale's brand saw a 3% increase in comps on an owned basis and 3.8% on an owned-plus-licensed-plus-marketplace basis [6] - Bluemercury brand experienced a 1.5% increase in comps on an owned basis, marking the 17th consecutive quarter of growth [6] Margins and Expenses - Gross margin remained flat at 39.2%, with improved merchandise margins offset by increased delivery expenses [7] - Selling, general and administrative (SG&A) expenses were $1.91 billion, up 0.1% year over year, with SG&A as a percentage of total revenues rising 170 basis points to 39.9% [8][9] - Adjusted EBITDA was $324 million, down 11% from $364 million in the prior year, with an adjusted EBITDA margin of 6.8%, down 50 basis points year over year [9] Cash and Equity Overview - The company ended the quarter with cash and cash equivalents of $932 million and long-term debt of $2.77 billion [10] - Merchandise inventories declined by 0.5% year over year [10] - The company repurchased 8.7 million shares for $101 million, with $1.3 billion remaining under its $2 billion share repurchase authorization [11] Guidance for Fiscal 2025 - Macy's updated its annual guidance, expecting net sales between $21 billion and $21.4 billion for fiscal 2025 [14] - Comparable owned-plus-licensed-plus-marketplace sales are projected to decline by 0.5-2% year over year [15] - Adjusted earnings per share are expected to be between $1.60 and $2.00, down from the previous estimate of $2.05-$2.25 [16]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Summary of Key Points Core Viewpoint - Numerous companies are lowering their profit forecasts for 2025 due to the impact of tariffs and economic uncertainty, indicating a broader trend of caution across various industries. Group 1: Retail Sector - Abercrombie & Fitch lowered its full-year profit forecast for 2025, citing a $50 million hit from tariffs, including a 30% tariff on imports from China and a 10% tariff on other imports [1][2] - Macy's also reduced its earnings per share outlook for the year, attributing it to tariffs, moderation in consumer spending, and increased competition [3] - Target expects sales to decline throughout 2025, previously projecting a 1% growth, due to weaker spending linked to tariff uncertainties [3] Group 2: Consumer Goods and Food & Beverage - Diageo warned of a $150 million hit to annual profits in 2025 but plans to offset half of this impact through unspecified actions [4] - PepsiCo lowered its earnings forecast for 2025, facing higher supply chain costs due to tariffs and a volatile consumer environment [15] - Kraft Heinz also lowered its outlook, citing a volatile operating environment influenced by tariffs and inflation [13] Group 3: Automotive Industry - Ford expects tariffs to reduce its earnings before interest and taxes by about $1.5 billion in 2025 and has suspended its full-year guidance [8] - General Motors lowered its earnings forecast to between $10 billion and $12.5 billion, down from $13.7 billion to $15.7 billion, due to the impact of tariffs [12] - Toyota estimated a $1.25 billion profit loss in April and March due to U.S. tariffs, forecasting a nearly 21% dip in operating income through 2025 [5] Group 4: Technology and Electronics - AMD anticipates a $1.5 billion revenue loss in 2025 due to restrictions on chip shipments to China [7] - Apple expects a $900 million hit to its bottom line in the second quarter due to tariffs, complicating future predictions [10] - Logitech withdrew its outlook for the 2026 fiscal year due to ongoing tariff uncertainties [17] Group 5: Airlines and Transportation - JetBlue and Alaska Airlines both pulled their full-year guidance for 2025 due to macroeconomic uncertainty [13][17] - Delta Airlines withdrew its full-year guidance, citing broad macro uncertainty [18] - United Airlines issued a second guidance featuring significantly lower earnings for 2025, reflecting the unpredictable economic environment [17] Group 6: Miscellaneous - Steve Madden withdrew its financial guidance for 2025, facing heightened uncertainty from new tariffs [6] - Rivian lowered its targets for vehicle deliveries and capital spending for 2025 due to significant uncertainty in the global economic landscape [6] - Snap declined to issue guidance for its second quarter, citing uncertainty in macroeconomic conditions affecting advertising demand [14]

Core Viewpoint - Macy's has reduced its annual profit forecast due to the impact of tariffs and a slowdown in consumer spending, indicating a cautious outlook for the retail sector [1][3][4] Financial Performance - The company now expects adjusted earnings per share of $1.60 to $2 for 2025, down from a previous forecast of $2.05 to $2.25, with 15 to 40 cents of the drop attributed to tariffs [1][3] - Macy's reaffirmed its annual sales forecast of $21 billion to $21.4 billion, a decline from last year's $22.29 billion [4] - For the three months ended May 3, adjusted earnings per share were reported at 16 cents, beating projections of 14 cents, while revenue was $4.6 billion, above expectations of $4.5 billion [4] Market Challenges - The company faces challenges from a slowdown in consumer spending and increased competition in promotions and discounts across the retail industry [3][8] - Comparable sales at Macy's locations fell 0.8% compared to the same period last year, while same-store sales at Bloomingdale's and Bluemercury increased by 3.8% and 1.5%, respectively [7][9] Strategic Initiatives - Macy's is undergoing a three-year turnaround plan, which includes closing 150 locations by early 2027 and enhancing its Bluemercury and Bloomingdale's businesses [5][6] - The company has invested in staffing, improved displays, and a new merchandise mix at 125 locations, which is about one-third of the stores it plans to keep open [6][11] Stock Performance - Macy's shares have decreased by approximately 27% so far this year [10][13]

Group 1 - Macy's, Inc. (NYSE: M) has experienced a significant decline in share price, losing 41% over the past year [1] - Investors are dissatisfied with the slow pace of the company's turnaround efforts, particularly after it rejected a buyout offer [1] - The company has a history of making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns [1]

Core Viewpoint - Macy's Inc. has revised its annual outlook due to initial and current tariffs, moderation in consumer discretionary spending, and increased competition, leading to a decrease in expected adjusted earnings per share for fiscal 2025 [1] Financial Performance - The company reported net sales of $4.6 billion for Q1 2025, a decline of 5.1% year over year, but exceeded the consensus estimate of $4.50 billion [3] - Comparable sales decreased by 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis [3] - Adjusted earnings were reported at 16 cents per share, surpassing the consensus of 14 cents [4] - Core adjusted EBITDA was $308 million, down from $363 million a year ago [4] Future Guidance - For fiscal 2025, Macy's has lowered its adjusted earnings per share guidance from $2.05-$2.25 to $1.60-$2.00, compared to the consensus of $1.93 [1] - The company maintained its sales guidance for 2025 at $21 billion-$21.4 billion, slightly below the consensus of $21.31 billion [1] - For Q2 2025, Macy's forecasts sales between $4.65 billion and $4.75 billion and adjusted earnings of 15 to 20 cents per share, compared to the consensus of $4.76 billion and 34 cents, respectively [5] Margin and Sales Trends - The gross margin remained flat at 39.2%, with improved merchandise margin offset by higher delivery expenses as a percentage of net sales [4] - Comparable sales for the go-forward business were down 1.8% on an owned basis and 0.9% on an owned-plus-licensed-plus-marketplace basis [4] - Bloomingdale's and Bluemercury reported positive sales growth, with Bloomingdale's net sales up 2.6% and Bluemercury's up 0.8% [6]

Nvidia and Salesforce are both scheduled to release earnings after the close. (Photo by Patrick T. ... More Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) AFP via Getty Images Key Takeaways Stocks staged a broad rally on Tuesday following a long holiday weekend. The S&P 500 gained 2%. Both the Nasdaq Composite and Russell 2000 were higher by 2.5%, while the Dow Jones Industrial Average notched a gain of 1.8%. The rally came after a whirlwind of trade and tariff activity. However, I want to ...