Macy's, Inc. (M – Analyst Report), one of the leading department store retailers, came out with second-quarter fiscal 2015 results, wherein earnings of 64 cents per share missed the Zacks Consensus Estimate of 75 cents and slumped 20% from 80 cents delivered in the year-ago quarter.

For fiscal 2015, earnings per share are still expected to be in the range of $4.70- $4.80.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 and fiscal 2016 has witnessed a downtrend in the last 30 days. However, in the trailing four quarters, the company marginally outperformed the Zacks Consensus Estimate by an average of 0.6%.

Revenues: Macy's generated net sales of $6,104 million that declined 2.6% year over year and fell short of the Zacks Consensus Estimate of $6,237.8 million. Comparable sales on an owned plus licensed basis dipped 1.5% while on an owned basis, comparable sales fell 2.1%.

Given the soft top-line performance in the first half of fiscal 2015, Macy's lowered its sales outlook for fiscal 2015. The company now expects total sales for the fiscal to slip 1%, down from its previous guidance of a 1% increase. Comps (owned plus licensed) are now anticipated to remain flat, as against a 2% growth predicted earlier. On an owned basis, comps are expected to be roughly 50 basis points below owned plus licensed basis comps.

Key Events : Macy's entered into a joint venture (“JV”) with Fung Retailing Limited, in an attempt to tap retailing opportunities in the fast-growing Chinese markets. Holding a 65% stake in the JV, Macy's intends to use the ecommerce platform to commence sales in China in late 2015.

Also, Macy's repurchased about 8.0 million shares worth $552 million during the quarter, after which it had about $1.6 billion shares remaining under its buyback authorization.

Zacks Rank: Currently, Macy's carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.