THE WHAT? Macy’s has reported FY2021 comparable sales up 43 percent on an owned basis and up 42.9 percent on an owned-plus-licensed basis versus 2020; up 3.1 percent and up 3 percent, respectively, versus 2019.
THE DETAILS The U.S. retailer saw digital sales increase 13 percent versus 2020 and increase 39 percent compared to 2019.
Looking at Q4, Macy’s saw comparable sales rise 28.3 percent on an owned basis and up 27.8 percent on an owned-plus-licensed basis versus the fourth quarter of 2020; up 6.6 percent and 6.1 percent, respectively, compared to Q4 2019.
Digital sales increased 12 percent in Q4, while Macy’s new customers increased 40 percent over 2020 and 26 percent over 2019 to 19.4 million.
The better-than-expected results mean Macy’s has declined to spin off its online business, which is said to be being pushed by an activist investor.
Chief Executive Jeff Gennette told Reuters, “We are more confident in our path forward as one integrated company.”
THE WHY? Macy’s offset any disruption from the COVID-19 Omicron variant with higher prices and speeding up shipments for the holiday quarter.
Gennette said, “Our team began the large-scale work of transforming Macy’s, Inc. two years ago when we launched the Polaris strategy, and today we believe the evidence is clear – our business is stronger, more agile, and financially healthier. We are more digitally led and customer centric and believe we are better positioned for long-term sustainable and profitable growth.”