Financial Data and Key Metrics Changes - Fourth quarter net sales were approximately $7.8 billion, down from $8.1 billion in the previous year, aligning with guidance [31] - Total enterprise comparable sales increased by 0.2%, marking the highest quarterly results since Q1 2022 [31] - Adjusted EPS for the fourth quarter was $1.8, exceeding guidance due to better-than-expected SG&A and credit card revenues [13][35] Business Line Data and Key Metrics Changes - Macy's net sales decreased by 5.3%, with comparable sales down 0.9% [32] - Bloomingdale's achieved a 6.5% increase in comparable sales, the strongest fourth quarter volume in its history [17] - Blue Mercury's net sales rose by 2.4%, with comparable sales increasing by 6.2% [32] Market Data and Key Metrics Changes - The first fifty Macy's locations saw a positive 1.2% comparable sales growth, while the remaining locations lagged behind [14] - The luxury segment, particularly Bloomingdale's, showed strong performance, indicating a robust demand in that market [17][18] Company Strategy and Development Direction - The "Bold New Chapter" strategy aims to return the company to sustainable profitable growth by focusing on customer needs and improving the store environment [7][8] - The company plans to close approximately 150 underperforming stores to concentrate resources on more productive locations [15][100] - Investments in digital improvements and marketing strategies are being prioritized to enhance customer experience [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic shifts made, despite acknowledging ongoing external uncertainties affecting consumer behavior [21][30] - The company anticipates a challenging environment in 2025, with guidance reflecting caution due to economic pressures [38][90] Other Important Information - The company generated $679 million in free cash flow, a 71% increase from the previous year, and returned $192 million to shareholders through dividends [11][36] - The company is committed to reducing capital expenditures while prioritizing investments that support long-term growth [21][43] Q&A Session Summary Question: Insights on 2025 and same-store sales constraints - Management highlighted progress in the first year of the strategy, with growth in the first fifty stores and closing of underperforming locations [47] Question: Drivers of SG&A rate pressure - Management indicated that SG&A pressures are being managed through reinvestment in customer experience and operational efficiencies [51] Question: Engaging various customer demographics - Management emphasized the strength of the Macy's portfolio and its ability to adapt to changing consumer needs across different demographics [58] Question: Overall consumer health and promotional levels - Management noted that consumer health remains under pressure but emphasized the importance of creating compelling offerings to drive sales [72] Question: Trends in go-forward comps and category dynamics - Management reported strong performance in ready-to-wear and beauty categories, while acknowledging challenges in the home segment [84]

In a retail world where growth is harder to come by, Macy’s is prioritizing stability over expansion, adjusting to the realities of a more competitive and unpredictable market.Macy’s fourth-quarter results released Thursday (March 6) reflect a retail landscape where resilience is the key due to uncertain external factors and cautious consumers. As other retailers expand aggressively, Macy’s has held its ground, maintaining its store footprint amid a shifting market. This strategy hints at a deeper focus on ...

Macy’s, Inc. (M) has reported fourth-quarter fiscal 2024 results, wherein the top line lagged the Zacks Consensus Estimate but the bottom line surpassed the same. Revenues and earnings decreased from the year-ago quarter’s reported figures. Comparable sales (comps) fell on an owned basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.As the company concludes the first year of its Bold New Chapter strategy, investments in the customer experience have driven the highest comps of the ye ...

Retail stock Macy's Inc (NYSE:M) is down 1.9% at 13.05, earlier hitting a 52-week low of $12.60. The company reported mixed fourth-quarter results, including better-than-expected earnings alongside a revenue miss, but investors are focusing in on the disappointing full-year guidance. Notably, CEO Tony Spring's turnaround efforts appear to be taking shape, however, with comparable sales up 0.2% -- the highest since the first quarter of 2022. On the charts, the $16 level has been keeping rallies in check sinc ...

Financial Data and Key Metrics Changes - Fourth quarter net sales were approximately $7.8 billion, down from $8.1 billion last year, in line with guidance [43] - Total enterprise comps increased by 0.2%, the highest quarterly results since Q1 2022 [43] - Adjusted EPS for the fourth quarter was $1.80, above guidance, primarily due to better-than-expected SG&A and credit card revenues [15][50] - Free cash flow grew by 71% to $679 million, including $283 million from asset monetization [12][51] - Year-end inventories increased by 2.5% year-over-year, with half of the increase attributed to the conversion to cost accounting [47] Business Line Data and Key Metrics Changes - Macy's net sales decreased by 5.3%, with comps down 0.9% [44] - Bloomingdale's achieved a positive 6.5% comp, the strongest fourth quarter volume in its history [22] - Bluemercury's net sales were up 2.4%, with comps rising 6.2% [44] - The First 50 locations at Macy's achieved a positive 1.2% comp, outperforming the rest of the fleet [16] Market Data and Key Metrics Changes - The luxury segment showed strong performance, with Bloomingdale's and Bluemercury continuing positive comp trends [21] - Macy's media network revenues increased by 7%, reflecting growth in advertisers and campaign counts [45] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on improving store environments and enhancing the omnichannel customer experience [9][10] - The company plans to continue reducing CapEx while prioritizing investments that support growth and profitability [29] - The strategy includes closing underperforming stores to focus resources on go-forward locations [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic shifts made, while acknowledging the need for continued work [13] - The company is cautious about the external environment and consumer health, expecting pressure to continue in the near term [100][126] - The outlook for fiscal 2025 includes net sales of $21 billion to $21.4 billion, with comps expected to decline by 2% to 0.5% [55][56] Other Important Information - The company closed 64 non-go-forward Macy's stores ahead of the planned 50 closures, contributing to asset sale gains of $144 million [12][18] - The company is focused on enhancing its private brand offerings, with plans to address all home furnishing brands by mid-2025 [134] Q&A Session Summary Question: Areas of strength relative to same-store sales constraints - Management highlighted progress in the first year of the Bold New Chapter, including growth in the First 50 stores and closing underperforming locations [69][70] Question: Drivers of SG&A rate pressure - SG&A expenses were impacted by lower total revenue, but savings from store closures are being reinvested into customer experience initiatives [48][78] Question: Engaging various customer demographics - The company emphasized its multi-category business and strong partnerships, which allow for flexibility in navigating the uncertain environment [85][86] Question: Overall consumer health and promotional levels - Management noted that consumer health remains under pressure, with a focus on making offerings more compelling [99][103] Question: Trends in go-forward comps and category dynamics - The company observed strong performance in ready-to-wear and beauty categories, while the home business faced challenges [116][120] Question: Private label penetration and store closures - The company is working to rebuild its private label business and remains committed to closing approximately 150 stores by the end of fiscal 2026 [134][139]

Macy's (M) came out with quarterly earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.13%. A quarter ago, it was expected that this department store operator would post earnings of $0.07 per share when it actually produced earnings of $0.04, delivering a surprise of -42.86%.Over the last four quarters, the c ...

4Q24 Earnings March 6, 2025 Safe Harbor Statement All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this prese ...

Core Viewpoint - Macy's issued a profit warning due to "external uncertainties" affecting its turnaround efforts, leading to a 3.1% decline in premarket trading [1] Financial Performance - The company reported lower-than-expected earnings expectations for both the first quarter and the full year [1] - The unclear immediate future for customers is impacting its core retail brands, including Macy's, Bloomingdale's, and Bluemercury [1]

Sales Performance - Macy's, Inc. reported fourth quarter net sales of $7.8 billion, a decrease of 4.3% compared to the fourth quarter of 2023, with comparable sales down 1.1% on an owned basis[4]. - The company's go-forward business comparable sales were down 0.7% on an owned basis, while the First 50 locations achieved a 0.8% increase in comparable sales on an owned basis[5]. - For fiscal year 2024, net sales decreased 3.5% to $22.3 billion, with comparable sales down 2.0% on an owned basis[9]. - Net sales for the 13 weeks ended February 1, 2025, were $7,768 million, a decrease from $8,120 million for the 14 weeks ended February 3, 2024[29]. - Total revenue for the 52 weeks ended February 1, 2025, was $23,006 million, compared to $23,866 million for the 53 weeks ended February 3, 2024, reflecting a decline of 3.6%[32]. - Comparable sales decreased by 1.1% on an owned basis for the 13 weeks ended February 1, 2025, with a decrease of 2.0% for the 52 weeks[48][49]. - The company reported a decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis of 0.2% for the 13 weeks ended February 1, 2025[48]. Financial Performance - Macy's ended fiscal year 2024 with $1.3 billion in cash, generating nearly $1.3 billion of operating cash flow and $679 million of free cash flow[5]. - Net income for the 52 weeks ended February 1, 2025, was $582 million, a significant increase from $45 million for the 53 weeks ended February 3, 2024[37]. - Basic earnings per share for the 52 weeks ended February 1, 2025, were $2.10, compared to $0.16 for the previous year[32]. - Adjusted net income for the 52 weeks ended February 1, 2025, was $745 million, with adjusted diluted earnings per share of $2.64[54]. - Free cash flow for the 52 weeks ended February 1, 2025, was $679 million, reflecting ongoing cash generation available for investments[55]. - Adjusted EBITDA for the 13 weeks ended February 1, 2025, was $903 million, compared to $1,091 million for the 14 weeks ended February 3, 2024[54]. Margins and Expenses - The gross margin rate for fiscal year 2024 was 38.4%, remaining flat compared to the previous year[10]. - SG&A expenses for fiscal year 2024 were $8.3 billion, a decrease of $45 million, but as a percentage of total revenue, it increased to 36.2% due to lower total revenue[10]. - Gross margin for the 52 weeks ended February 1, 2025, was $8,553 million, representing 38.4% of total revenue, consistent with the previous year[32]. - The company reported a gross margin of $2,777 million, or 35.7%, for the 13 weeks ended February 1, 2025, down from $2,967 million, or 36.5%, for the 14 weeks ended February 3, 2024[29]. - Other revenue for the 52 weeks ended February 1, 2025, was $713 million, accounting for 3.2% of net sales, compared to $774 million, or 3.4%, the previous year[39]. Future Guidance - Fiscal year 2025 guidance includes expected net sales of $21.0 billion to $21.4 billion, with comparable owned-plus-licensed-plus-marketplace sales projected to decline by approximately 2.0% to 0.5%[19]. - Adjusted diluted earnings per share for fiscal year 2025 is expected to be between $2.05 and $2.25[19]. Cash Flow and Assets - Cash flows from operating activities for the 52 weeks ended February 1, 2025, were $1,278 million, slightly down from $1,305 million for the previous year[37]. - Total assets as of February 1, 2025, were $16,402 million, an increase from $16,246 million as of February 3, 2024[34]. - Current liabilities as of February 1, 2025, totaled $4,524 million, compared to $4,532 million the previous year[34]. Other Insights - The company emphasizes that non-GAAP financial measures should be viewed as supplemental to GAAP results, as they provide additional insights into operational performance[45]. - Macy's Media Network revenue increased by 6.7% to $64 million, reflecting growth in the number of advertisers and campaign counts[12]. - The impact of departments licensed to third parties and marketplace sales contributed positively with an increase of 1.3% for the 13 weeks ended February 1, 2025[48].

Core Viewpoint - Macy's is experiencing mixed results as it navigates a turnaround under CEO Tony Spring, with pressure from activist investors seeking to take the company private [1][10]. Financial Performance - Comparable sales for Macy's during the holiday quarter decreased by 1.1%, while comparable sales across owned and licensed businesses, plus online marketplace, increased by 0.2%, marking the highest growth since Q1 2022 [2]. - The "First 50" locations, which are prioritized in the turnaround plan, reported a 0.8% increase in comparable sales, showing positive performance for four consecutive quarters [3]. - For fiscal 2025, Macy's anticipates adjusted earnings per share between $2.05 and $2.25, and sales between $21 billion and $21.4 billion, which are below Wall Street expectations of $2.31 per share and $21.8 billion in sales [4]. - The reported net income for the fiscal fourth quarter was $342 million, or $1.21 per share, compared to a loss of $128 million, or a loss of 47 cents per share, a year earlier [4]. - Total sales fell to $7.77 billion, down approximately 4% from $8.12 billion a year prior [5]. Strategic Initiatives - CEO Spring has initiated a plan involving the closure of 150 stores and investment in better-performing locations to address longstanding issues [7]. - The company is focusing on enhancing staffing, merchandising, and visual presentation in the 50 prioritized locations, which have shown better performance than the rest of the chain [8]. - After the store closures, Macy's will retain about 350 locations, and extending the successful strategy to the broader chain will require time and capital [9]. Activist Investor Influence - Activist investor Barington Capital has taken a position in Macy's, advocating for cost-cutting measures, potential sales of luxury brands, and a review of the real estate portfolio [10]. - There is skepticism regarding the motivations of Barington and other activist investors, with concerns that they may prioritize short-term profits over long-term revitalization efforts [11]. Shareholder Returns - Macy's announced plans to resume share buybacks under a remaining $1.4 billion authorization, contingent on market conditions [13]. - The company aims to enhance customer experience, operational excellence, and maintain healthy free cash flow while returning capital to shareholders through buybacks and dividends [13].