$M (-3.93%) | Macy’s Q2'24 Earnings Highlights:
🔹 EPS: $0.53 (Est. $0.32) 🟢
🔹 Revenue: $4.94B (Est. $5.09B) 🔴
🔹 Gross Margin: 40.5%; UP 240 basis points YoY
CUTS FY'24 Guidance:
🔸 Net Sales: $22.1B to $22.4B (Prior: $22.3B to $22.9B) 🔴
🔸 Adj. EPS: $2.55 - $2.90 (Est. $2.77) 🟡
🔸 Comparable Sales: Down ~2.0% to down ~0.5% YoY (Prior: Down ~1.0% to up 1.5%) 😕
Comparable Sales:
🔹 Owned Basis: Down 4.0% YoY
🔹 Owned-Plus-Licensed-Plus-Marketplace Basis: Down 3.3% YoY
Key Q2 Metrics:
🔹 Merchandise Inventories: UP 6.0% YoY
🔹 Credit Card Revenue: $125M; UP $5M YoY
🔹 Macy’s Media Network Revenue: $34M; UP $4M YoY
🔹 Asset Sale Gains: $36M; UP $32M YoY
Additional Metrics:
🔹 Net Income: $0.53 per share (Last Year: Loss of $(0.08) per share)
🔹 SG&A Expenses: $2.0B; Down $7M YoY; SG&A as % of Revenue: 38.7%, UP 120 basis points
Segment Performance:
🔹 Macy’s Sales: Down 4.4% YoY
🔸 Macy’s First 50 Locations: Comparable Sales UP 0.8% YoY
🔸 Bloomingdale’s Sales: Down 0.2% YoY
🔸 Bluemercury Sales: UP 1.7% YoY; Comparable Sales UP 2.0% YoY
CEO Tony Spring's Commentary:
🔸 "During the second quarter, we delivered strong earnings performance in a challenging consumer environment. Our colleagues executed with discipline, supporting gross margin expansion and effective expense control throughout the organization. We are seeing signs of our strategy taking root, including two consecutive quarters of positive comparable sales in Macy’s First 50 locations. We remain committed to returning Macy’s, Inc. to sustainable profitable growth."
Strategic and Business Updates:
🔸 Macy’s revised its full-year guidance to reflect a more discriminating consumer and heightened promotional environment.
🔸 The company views 2024 as a transition and investment year, focusing on key customer-focused strategic initiatives while maintaining expense control to protect profitability.
