Macys Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-21
Macy's, Inc. Reports Second Quarter 2024 Financial Results
Macy's, Inc. (NYSE:M) today announced its financial results for the second quarter of 2024, delivering strong earnings despite a challenging consumer environment.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $4.9 billion | $5.12 billion | -3.8% | $5.12 billion |
| GAAP EPS | $0.53 | $(0.08) | +$0.61 | - |
| Adjusted Diluted EPS | $0.53 | $0.26 | +$0.27 | $0.30 |
| Gross Margin Rate | 40.5% | 38.1% | +240 bps | - |
Financial Performance Interpretation: Macy's, Inc. exceeded its earnings expectations with a GAAP and adjusted diluted EPS of $0.53, surpassing the consensus estimate of $0.30. Despite a marginal revenue decline of 3.8% year-over-year to $4.9 billion, the company achieved a significant improvement in gross margin rate, rising 240 basis points.
Segment Revenue Performance
| Segment | Q2 2024 Net Sales | YoY Change | Comparable Sales (Owned) | Comparable Sales (Owned + Licensed + Marketplace) |
|---|---|---|---|---|
| Macy's | -4.4% | -4.4% | -4.5% | -3.6% |
| Bloomingdale's | -0.2% | -0.2% | -1.1% | -1.4% |
| Bluemercury | +1.7% | +1.7% | +2.0% | - |
Segment Performance Interpretation: Macy's, Inc. experienced varying performance across its segments. Macy's brand saw a 4.4% decline in net sales and comparable sales. In contrast, Bluemercury showed positive growth with a 2.0% increase in comparable sales, while Bloomingdale's experienced a minimal decline in net sales and comparable sales.
Operational Data
| Operational Data | Q2 2024 |
|---|---|
| Merchandise Inventories | +6.0% |
| Credit Card Revenues | $125 million |
Comments from Company Officers
Tony Spring, Chairman and CEO, emphasized, "Our colleagues executed with discipline, supporting gross margin expansion and effective expense control. We are seeing signs of our strategy taking root, including positive comparable sales in Macy's First 50 locations."
Dividends and Share Repurchase Program
No specific information on dividends or share repurchase programs was provided in the earnings release.
Forward Guidance
Macy's, Inc. has updated its annual outlook, considering a more discriminating consumer and a heightened promotional environment but reaffirming its annual adjusted diluted earnings per share outlook.
Stock Price Movement
Following the earnings release, Macy's, Inc. stock saw a decline of 9.82%.
In summary, Macy's, Inc.'s Q2 2024 report highlights a strong performance in earnings amidst a challenging retail landscape, with effective margin and expense management, despite revenue headwinds.
