Macy's, Inc. Reports Third Quarter 2024 Financial Results
Macy's, Inc. (NYSE:M) released its financial results for the third quarter of 2024, confirming performance aligned with its preliminary statements and providing an updated annual guidance. The results emphasize revisions necessary to rectify previously understated delivery expenses.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $4.7 billion | Not Provided | -2.4% |
| GAAP Diluted EPS | $0.10 | $0.15 | Not Provided |
| Adjusted Diluted EPS | $0.04 | $0.21 | Not Provided |
Macy's faced a slight year-over-year revenue decline, down 2.4% to $4.7 billion, with earnings per share decreasing compared to the same period last year. However, adjusted diluted earnings per share of $0.04 surpassed the company’s prior guidance, indicating better-than-expected expense management, particularly in delivery expenses.
Revenue Performance by Segment
| Segment | Net Sales Growth | Comparable Sales Growth | Performance Drivers |
|---|---|---|---|
| Macy's | -3.1% | -3.0% (owned), -2.2% (marketplace) | Strength in fragrances, dresses, and active apparel categories. |
| First 50 Locations | N/A | +1.9% | Investments in staffing, merchandising, and visual presentation. |
| Bloomingdale's | +1.4% | +1.0% (owned), +3.2% (marketplace) | Strong performance in contemporary apparel, beauty, and digital. |
| Bluemercury | +3.2% | +3.3% | Continuation of the skincare product demand trend. |
The revenue performance indicates growth in specific key segments, such as Bloomingdale's and Bluemercury, which were driven by strength in contemporary fashion and beauty, respectively. Conversely, overall sales were hampered by underperformance in non-key Macy's locations and digital channels.
Key Developments and Operational Highlights
- Asset sale gains amounted to $66 million, exceeding previous guidance.
- Strategic investments are aimed at enhancing customer experiences in Macy's First 50 locations.
- Completion of an independent investigation regarding delivery expense inaccuracies, with no material impact found on historical financials.
Executive Commentary
Tony Spring, Chairman and CEO, noted that third-quarter results are indicative of promising momentum under Macy’s Bold New Chapter strategy. He expressed optimism for future sustainable growth, backed by consistent sales growth trends in top-performing locations and brands.
Forward Guidance
Macy's updated its annual guidance to reflect the recent adjustment in delivery expenses, providing a recalibrated earnings outlook. However, reconciliations of non-GAAP measures with forward-looking GAAP measures are not provided due to estimation difficulties.
In summary, Macy's, Inc. remains on a trajectory of cautious optimism, with growth in specific brand segments balancing overall sales challenges. Adjusted strategies and operational refinements, especially amidst a recovering retail landscape, underline the brand’s strategic repositioning for sustained growth.
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