THE WHAT? Macy’s has exceeded analyst expectations for Q2 2022, with comparable sales down 1.5 percent on an owned basis and down 1.6 percent on an owned-plus-licensed basis.

THE DETAILS Digital sales decreased 5 percent year-over-year while increasing 37 percent versus the second quarter of 2019.

Digital penetration was 30 percent of net sales, a 2-percentage point decline from the second quarter of 2021, but 8-percentage points higher than the second quarter of 2019.

Bloomingdale’s comparable sales on an owned basis were up 8.8 percent and on an owned-plus-licensed basis were up 5.8 percent, while Macy’s comparable sales were down 2.9 percent on an owned basis and down 2.8 percent, on an owned-plus-licensed basis.

Bluemercury comparable sales were up 7.6 percent on an owned and owned-plus-licensed basis.

THE WHY? Macy’s has lowered full-year sales and EPS guidance to incorporate risks related to increased macroeconomic pressures. 

The company said in a press release, “The company’s lower outlook for the remainder of the year incorporates the risk it sees in the continued deterioration of consumer discretionary spending in some of its categories and the level of inventory within the industry, as well as risks associated with a more pronounced macro downturn.”

Jeff Gennette, Chairman and Chief Executive Officer of Macy’s, said, “Over the past two years, our Polaris strategy has made us faster and more agile, which has been essential to navigate rapidly changing consumer trends and macro conditions. We expect to come out of this uncertain period in a strong position with a healthy balance sheet, new capabilities and a talented team ready to capture renewed demand.”