THE WHAT? Macy’s has reported its financial results for fiscal 2022. Net sales dropped 0.1 percent for the full year, versus 2021 to reach US$24.4 billion while comparable sale inched up 0.3 percent on 2021 figures and grew a respectable 3.5 percent on pre-pandemic figures.
THE DETAILS Although Macy’s saw a 4 percent drop in active customers, both Bloomingdale’s and Bluemercury registered increases of 5 percent and 12 percent respectively.
Macy’s Inc said it was taking a prudent approach to its outlook for 2023, predicting a drop in net sales of between 3 percent and 1 percent due to the heightened level of uncertainty within the macroeconomic environment.
THE WHY? Jeff Gennette, chairman and chief executive officer of Macy’s, Inc, commented, “We successfully navigated 2022 from a position of financial and operational strength. Despite an increasingly volatile macroeconomic climate, through the ongoing execution of our Polaris strategy, we remained agile, pivoted to meet customer demand and elevated our approach to inventory management.
“In the fourth quarter, we benefited from our disciplined inventory approach and compelling gift-giving strategy, which allowed us to provide fresh fashion and style at great values for all our customers. We were competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales. As we look to 2023 and beyond, we believe our five growth vectors which include our private brands reimagination, off-mall expansion, online marketplace, luxury brands acceleration and personalized offers and communication will further solidify our modern department store positioning.”