Macy's, Inc. has recently released its 10-Q report for the first quarter of 2025, showing a comprehensive overview of the company's financial condition and operational performance. Macy's, Inc. is an omni-channel retail organization operating stores, websites, and mobile applications under the Macy's, Bloomingdale's, and Bluemercury brands. The company has been implementing its strategy, A Bold New Chapter, focusing on enhancing the omni-channel shopping experience and improving customer satisfaction.
In the first quarter of 2025, Macy's, Inc. continued to make progress on its strategy. The company saw improvements in its net promoter scores, with the Macy's Reimagine 125 locations outperforming the rest of the fleet and achieving positive customer response. Additionally, the company's luxury segment, including Bloomingdale's and Bluemercury, experienced positive comparable sales growth.
In terms of financial performance, Macy's, Inc. reported a decrease in net sales by $247 million, or 5.1%, compared to the first quarter of 2024. The decline was attributed to the closing of non-go-forward locations and weaker international tourism impacting Macy's sales. However, the company reported an increase in credit card revenues and other revenues, reflecting a strong credit portfolio and growth in the Macy's Media Network.
The company's gross margin remained flat, with a 40 basis points increase in merchandise margin rate, while selling, general, and administrative expenses increased slightly. Macy's, Inc. also reported a decrease in net interest expense, primarily due to a reduction in interest expense from a tender offer completed in the third quarter of 2024.
Regarding liquidity and capital resources, Macy's, Inc. believes that its available cash, expected future cash from operations, and credit facilities will be sufficient to meet its anticipated needs for the next twelve months and beyond. The company's capital allocation goals include maintaining a healthy balance sheet, investing in the business for long-term growth, and returning capital to shareholders through dividends and share repurchases.
Furthermore, Macy's, Inc. announced a regular quarterly dividend and disclosed details about its share repurchase program and debt transactions. The company repurchased approximately 8.7 million shares of its common stock during the first quarter of 2025 and entered into an amendment to its asset-based credit facility, providing access to $2,100 million of committed liquidity for the next five years.
Following these announcements, the company's shares moved -0.35%, and are now trading at a price of $11.45. For the full picture, make sure to review Macy's's 10-Q report.
