Macy’s, Inc. has reported its financial results for the first quarter of 2024, showing a mixed performance compared to the same period in 2023. The company achieved diluted earnings per share of $0.22 and adjusted diluted earnings per share of $0.27 for the first quarter of 2024, which exceeded the company's outlook. This was, however, a decrease from the first quarter of 2023, where the company reported diluted earnings per share of $0.56 and adjusted diluted earnings per share of $0.56.
Net sales for the first quarter of 2024 were $4.8 billion, representing a 2.7% decrease compared to the first quarter of 2023. Comparable sales were down 1.2% on an owned basis and down 0.3% on an owned-plus-licensed-plus-marketplace basis. Macy’s, Inc.'s go-forward business comparable sales, inclusive of go-forward locations and digital, were down 0.9% on an owned basis and up 0.1% on an owned-plus-licensed-plus-marketplace basis.
Within the company's nameplate highlights, Macy’s comparable sales were down 1.6% on an owned basis and down 0.4% on an owned-plus-licensed-plus-marketplace basis. However, the first 50 locations achieved comparable owned sales of 3.3% and owned-plus-licensed sales of 3.4%, indicating a positive performance in those specific locations.
Other notable figures include a decrease in other revenue by $37 million, with credit card revenues, net declining by $45 million to $117 million due to higher delinquency rates and net credit losses. Merchandise inventories were up 1.7% versus the first quarter of 2023, and the gross margin rate for the quarter was 39.2%, down from 40.0% in the first quarter of 2023.
Looking ahead, the company updated its annual sales and earnings outlook, reflecting a portion of first-quarter performance and the dynamic macro environment. Macy’s, Inc. continues to view 2024 as a transition and investment year, with the updated outlook assuming customer discretion in their purchases and providing flexibility to respond to the competitive landscape and promotional environment.
The company's full updated outlook for 2024, presented on a 52-week basis, can be found in the presentation posted to macysinc.com/investors. Today the company's shares have moved -0.9% to a price of $18.93. For the full picture, make sure to review Macy's's 8-K report.
