Macy’s Inc Q12024: Sales down 2.7 percent but earnings exceed outlook

Macy’s Inc Q12024: Sales down 2.7 percent but earnings exceed outlook

THE WHAT? Macy’s revealed that its transformation plan, a Bold New Chapter, is ‘gaining traction’ as it reported its first quarter results for the current financial year. The US retailer saw sales dip 2.7 percent yoy to US$4.8 billion.

THE DETAILS Diluted earnings per share hit US$0.22, above outlook, Macy’s said, but still below the US$0.56 reported for the same period in 2023.

Highlights of the quarter included a 0.1 percent rise in sales for go-forward locations, and 3.3 percent increase for First 50 locations. Both Bloomingdales (+0.8 percent) and Bluemercury (+4.3 percent) saw sales growth also.

THE WHY? Tony Spring, Chairman and CEO of Macy’s, Inc, comments, “We are encouraged by our customers’ response to our Bold New Chapter strategy resulting in sales near the high end of our outlook. Our teams executed with discipline and efficiency, which contributed to first quarter earnings that exceeded our expectations. At the Macy’s nameplate, go-forward business performance was led by our First 50 locations, which achieved comparable sales growth year over year and are a leading indicator for our go-forward fleet. Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth.”