Macy’s, Inc. has reported its financial results for the second quarter of 2024, showing a strong performance despite a challenging consumer environment. The company's gross margin rate of 40.5% exceeded its outlook. The press release highlights the following key metrics and changes compared to the second quarter of 2023:
- Diluted earnings per share (EPS) were $0.53, compared to a diluted loss per share of $(0.08) in the second quarter of 2023.
- Net sales decreased by 3.8% to $4.9 billion.
- Comparable sales were down 4.0% on an owned basis and down 3.3% on an owned-plus-licensed-plus-marketplace basis.
- Macy’s net sales were down 4.4%, with comparable sales down 4.5% on an owned basis.
- Macy’s go-forward business comparable sales, including go-forward locations and digital, were down 4.3% on an owned basis.
- Bloomingdale’s net sales were down 0.2%, with comparable sales down 1.1% on an owned basis.
- Bluemercury net sales were up 1.7%, with comparable sales up 2.0% on an owned basis.
- Other revenue increased to $159 million, representing 3.2% of net sales, an increase of 30 basis points.
- Merchandise inventories increased by 6.0%.
- Gross margin rate of 40.5% increased by 240 basis points, driven by lower year-over-year discounting and favorable shortage due to the company’s asset protection work.
- Selling, general and administrative (SG&A) expense of $2.0 billion decreased by $7 million, with SG&A expense as a percent of total revenue at 38.7%, 120 basis points higher due to lower net sales.
- Asset sale gains increased to $36 million due to an earlier-than-expected non-go-forward asset sale.
Furthermore, Macy’s reported that the first 50 locations achieved a second consecutive quarter of positive comparable sales, with an increase of 0.8% on an owned basis. The company also updated its annual outlook, reaffirming its annual adjusted diluted earnings per share outlook and emphasizing its focus on enhancing gross margin and exercising expense control to protect profitability.
The press release indicates that Macy’s is viewing 2024 as a transition and investment year, with a commitment to returning the company to sustainable profitable growth. The full updated outlook for 2024, as presented on a 52-week basis, is available on the company's website.
Today the company's shares have moved -11.1% to a price of $15.78. For more information, read the company's full 8-K submission here.
