Macy’s, Inc. has reported its preliminary financial results for the third quarter of 2024, revealing some notable highlights and changes compared to the same period in 2023.
In terms of sales, Macy’s, Inc. net sales decreased by 2.4% to $4.742 billion, with comparable sales down 2.4% on an owned basis and down 1.3% on an owned-plus-licensed-plus-marketplace basis.
The company's go-forward business1 comparable sales were down 2.0% on an owned basis and down 0.9% on an owned-plus-licensed-plus-marketplace basis. Specifically, Macy’s net sales were down by 3.1%, with comparable sales down 3.0% on an owned basis and down 2.2% on an owned-plus-licensed-plus-marketplace basis.
However, there were also positive areas of growth. Macy’s first 50 locations achieved their third consecutive quarter of comparable sales growth, with a 1.9% increase on both an owned basis and on an owned-plus-licensed basis. Bloomingdale’s reported a 1.4% increase in net sales, with comparable sales up 1.0% on an owned basis and up 3.2% on an owned-plus-licensed-plus-marketplace basis. Bluemercury also saw growth, with net sales up by 3.2% and comparable sales up 3.3% on an owned basis, representing the fifteenth consecutive quarter of comparable sales growth.
Other revenue decreased by $17 million, or 9.6%, with credit card revenues, net decreasing by $22 million, or 15.5%, to $120 million. On the positive side, Macy’s media network revenue, net rose by $5 million, or 13.9%, to $41 million.
The company reported asset sale gains of $66 million, which was $61 million higher than last year due to the monetization of non-go-forward assets as part of the company’s bold new chapter strategy.
In terms of balance sheet and liquidity, merchandise inventories increased by 3.9% year-over-year, reflecting improved inventory composition and supply chain efficiencies. The company ended the third quarter of 2024 with cash and cash equivalents of $315 million and $2.770 billion of available borrowing capacity under its asset-based credit facility.
Despite these financial updates, the company also faced an issue related to delivery expenses, which led to the identification of approximately $132 to $154 million of cumulative delivery expenses that were hidden due to erroneous accounting accrual entries.
As a result, the company is delaying its earnings release and conference call relating to the third quarter of 2024 to allow for the completion of an independent investigation. The company expects to report its full third quarter 2024 financial results and hold its earnings conference call by December 11, 2024.
Macy’s, Inc. plans to provide an update on its fiscal 2024 outlook when it reports full third quarter 2024 financial results.
Following these announcements, the company's shares moved -3.4%, and are now trading at a price of $15.74. For more information, read the company's full 8-K submission here.
