Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.
USAWorld News

Macy’s (M) Q1 2023 results

Macy’s Shares fell on Thursday as the retailer slashed its full-year outlook and said it saw sales weaken significantly in late March.

Shares of the company fell 10% in premarket trading, although it beat expectations for fiscal first-quarter earnings.

investment related news

CNBC Investment Club

The department store operator said it now expects sales of $22.8 billion to $23.2 billion for the year, down from a previous range of $23.7 billion. dollars to $24.2 billion. Macy’s expects comparable sales owned more under license to fall 6% to 7.5% during the period, worse than its previous forecast of a 2% to 4% decline.

For the year, he expects adjusted earnings per share of $2.70 to $3.20 – a significant reduction from the previous forecast of $3.67 to $4.11 per share.

In an interview with CNBC, CEO Jeff Gennette said the retailer has taken a conservative stance for the rest of the year after seeing a spring pullback. He said the company expects more markdowns on seasonal products and plans to reduce merchandise orders as it prepares for the next few quarters.

The drop in sales hit Macy’s brands, including high-end Bloomingdale’s and beauty chain Bluemercury, he said.

Here’s how Macy’s fared for the three-month period ending April 29 compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Earnings per share: 56 cents adjusted against 45 cents expected
  • Income: $4.98 billion vs $5.04 billion expected

Macy’s first-quarter net income was $155 million, or 56 cents per share, compared with $286 million, or 98 cents per share, a year earlier.

Revenue fell about 7% to $4.98 billion from $5.35 billion a year ago. Sales missed analysts’ forecasts.

Same-store sales on an owned-plus-licensed basis fell 7.2% for the quarter, worse than the 4.7% drop expected by analysts polled by Refinitiv.

The Macy’s brand saw the largest year-over-year declines. Its comparable sales fell 7.9% on an owned-plus-licensed basis. At Bloomingdale’s, comparable sales on an owned-plus-licensed basis fell 4.3%. Bluemercury’s comparable sales rose 4.3% year-over-year, but the growth was slower than the double-digit or single-digit increases it posted in other quarters.

Gennette said Macy’s sales have been hit by squeezing customer budgets. About half of Macy’s namesake brand customers have household incomes of $75,000 or less.

“They are clearly under pressure, and especially in our discretionary categories,” he said.

At Bloomingdale’s, he said, the “ambitious shopper” who bought more luxury brands during the Covid pandemic when they had stimulus money also plummeted.

Cooler weather also hurt sales as shoppers delayed purchasing seasonal items, he added.

But Gennette said the company saw “signs of life in May” as the weather warmed. He said sales of spring clothes have increased, especially at Bloomingdale’s. Sales at the high-end department store are ahead of last May, he said.

Beauty has been one of the company’s strongest categories. Some of the popular pandemic items, such as textiles and household items, are also starting to rebound.

As Macy’s prepares for a potentially tougher year, Gennette said customers have a new reason to visit in the fall and during the holidays. Starting at October, Nike will return to its stores and website. Macy’s received its last shipment from Nike in December 2021, as the athletic shoe company scaled back bulk orders and shifted its focus to direct-to-consumer sales.

Macy’s sold Nike shoes through a licensing partnership with Finish Line, but it will start getting a more comprehensive assortment, including women’s, men’s and kids’ apparel.

“We took a break from our partnership, and now we’re back on it,” he said.

Macy’s shares closed Wednesday at $13.59, bringing the company’s market value to $3.69 billion. So far this year, the company’s shares are down 34%. That lags the nearly 9% gains in the S&P 500 and the roughly 6% loss in the retail-focused XRT over the same period.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.

Back to top button