Macy's Inc. Exceeds Earnings Expectations in Q4 2024

By Bobby Samwell • Thursday, March 06 15:18 • Permanent Link

Macy’s, Inc. has reported its financial results for the fourth quarter and fiscal year 2024. The company achieved a GAAP diluted earnings per share of $1.21 for the fourth quarter, while adjusted diluted earnings per share of $1.80 exceeded the company’s prior guidance range.

In the fourth quarter of 2024, Macy’s, Inc. reported that net sales decreased by 4.3% to $7.8 billion, with comparable sales down 1.1% on an owned basis and up 0.2% on an owned-plus-licensed-plus-marketplace basis. Macy’s, Inc. net sales for the fiscal year 2024 decreased by 3.5% to $22.3 billion, with comparable sales down 2.0% on an owned basis and down 0.9% on an owned-plus-licensed-plus-marketplace basis.

The company's go-forward business comparable sales were down 0.7% on an owned basis and up 0.6% on an owned-plus-licensed-plus-marketplace basis in the fourth quarter of 2024. For the fiscal year 2024, go-forward business comparable sales were down 1.7% on an owned basis and down 0.6% on an owned-plus-licensed-plus-marketplace basis.

Macy’s reported owned comparable sales growth of 4.8% in the fourth quarter of 2024 for Bloomingdale’s and its highest fourth quarter owned-plus-licensed-plus-marketplace comparable sales growth of 6.5%. Bluemercury reported its 16th consecutive quarter of comparable sales growth, up 6.2%.

The company ended the year with $1.3 billion of cash on the balance sheet, up $272 million from the previous year, and generated nearly $1.3 billion of operating cash flow and $679 million of free cash flow.

Regarding the balance sheet and liquidity, merchandise inventories increased by 2.5% year-over-year, and the company ended fiscal year 2024 with cash and cash equivalents of $1.3 billion.

For fiscal year 2025, Macy’s, Inc. expects net sales to range from $21.0 billion to $21.4 billion, with comparable owned-plus-licensed-plus-marketplace sales expected to change down approximately 2.0% to down approximately 0.5% versus 2024.

In addition, the company announced its intent to resume share buybacks under the remaining $1.4 billion share repurchase authorization, market conditions permitting.

The detailed financial figures and guidance for fiscal year 2025 can be found in the presentation posted on the company's website. The market has reacted to these announcements by moving the company's shares -0.9% to a price of $13.2. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.