Macy's, Inc. has recently released its 10-K report, providing an in-depth look at its financial condition and operational results. The company, established in 1830 and based in New York, is an omni-channel retail organization that operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and Bluemercury brands. In 2024, Macy's announced its new three-year strategy, "A Bold New Chapter," focusing on enhancing the omni-channel shopping experience and improving the customer experience.
In fiscal 2024, Macy's reported net sales of $22.3 billion, a decrease of 3.5% compared to 2023. The company's operating income stood at $909 million, representing 4.0% of total revenue. Net income for the year was $582 million, with diluted earnings per share of $2.07. Digital sales accounted for 33% of net sales, maintaining the same level as in 2023.
The company's gross margin remained flat at 38.4% of net sales in 2024, while selling, general, and administrative expenses decreased by 1% compared to 2023. Macy's also recognized $144 million in gains on the sale of real estate and $171 million in impairment, restructuring, and other costs during the fiscal year.
In terms of revenue streams, credit card revenues decreased by 13% from 2023 to 2024, while Macy's Media Network saw a 14% growth in net revenue. The company's proprietary credit card sales penetration was reported at 41.6% in 2024, slightly down from 42.9% in 2023.
Macy's also provided an overview of its liquidity and capital resources, citing cash from operations, cash on hand, and an asset-based credit facility as its principal sources of liquidity. The company expressed confidence in its ability to satisfy working capital needs, capital expenditures, and cash dividends for at least the next 12 months and the foreseeable future thereafter.
The 10-K report also highlighted Macy's capital allocation goals, emphasizing the maintenance of a healthy balance sheet and investment-grade credit metrics to ensure access to funding under all economic scenarios.
As a result of these announcements, the company's shares have moved -1.0% on the market, and are now trading at a price of $13.24. For more information, read the company's full 10-K submission here.
