Macy’s Q3 2022: sales down 3.9 percent yoy but above pre-pandemic levels

Macy’s Q3 2022: sales down 3.9 percent yoy but above pre-pandemic levels

THE WHAT? Macy’s has reported its results for the third quarter of 2022 and reaffirmed its annual guidance. The US department store chain saw net sales drop 3.9 percent versus the same period a year-ago to US$5.2 billion but, compared to pre-pandemic levels in 2019, sales rose 1.1 percent.

THE DETAILS Diluted earnings per share stood at US$0.39, compared to US$0.76 in Q3 2021 and US$0.01 in Q3 2019. Gross margin was 38/7 percent, down from 41 percent in Q3 a year ago, while SG&A expense was 300 basis points higher compared to 2021 figures.

Breaking down sales performance to individual retail brands, Bloomingdales saw comparable sales rise 5.3 percent while Bluemercury recorded a 14 percent uptick.

THE WHY? Jeff Gennette, Chairman and Chief Executive Officer of Macy’s, Inc, revealed, “Our Polaris strategy is working. In the third quarter, we achieved solid top line results and a strong beat to our bottom line guidance. Macy’s brand position as a style and fashion source resonated with our customers, while luxury continued to outperform at Bloomingdale’s and Bluemercury. Retail is detail, and our talented and agile team are executing well to compete. We know the consumer is under increasing pressure and has choices on where to spend. As a leading gifting destination with fresh inventory across the value spectrum, we are ready to meet our customers’ needs this holiday season.”