Macy's, Inc. has recently released its 10-K report, providing an in-depth look at its financial performance and strategic initiatives. The company, founded in 1830 and based in New York, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and Bluemercury brands, offering a wide range of merchandise, including apparel, accessories, cosmetics, and home furnishings.
In fiscal 2024, Macy's announced a new three-year strategy called "A Bold New Chapter," focusing on enhancing the omni-channel shopping experience and improving the customer experience. The strategy aimed to revitalize the shopping environment, reallocate capital from underproductive stores, and accelerate luxury growth. The company also emphasized simplifying and modernizing its operations through cost-saving initiatives and the integration of emerging technologies like predictive analytics and AI.
In terms of financial performance, Macy's reported a net sales decrease of $799 million, or 3.5%, compared to the previous year. Comparable sales on an owned-plus-licensed-plus-marketplace basis decreased by 0.9%. Digital sales accounted for 33% of net sales, remaining consistent with the previous year. The company's gross margin remained flat, while selling, general, and administrative expenses decreased by $45 million, or 1%. Macy's also recognized $144 million in gains on the sale of real estate in 2024.
The company's liquidity and capital resources are primarily sourced from cash generated from operations, cash on hand, and an asset-based credit facility. Macy's also outlined its capital allocation goals, focusing on maintaining a healthy balance sheet and investment-grade credit metrics to ensure access to funding under various economic scenarios.
Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $13.24. For the full picture, make sure to review Macy's's 10-K report.
