Profitability has been eroding at an alarming rate at Macy’s (NYSE: M) in the past two years, as shoppers have turned away from department stores as a whole. Adjusted earnings per share reached $4.40 in fiscal 2014, but the company expects to report adjusted EPS of just $2.95-$3.10 for the recently ended 2016 fiscal year.
Despite this steep earnings decline, free cash flow has been remarkably consistent at Macy’s in recent years — particularly in the fourth quarter. Additionally, Macy’s has continued making progress on real estate sales in recent months.