Macy's Q2 Sales Down, Net Income Rises
Second quarter net sales at Macy’s Inc., were down nearly 4% as the department store worked through what it called a “challenging consumer environment.”
Company-wide net sales for the quarter ended August 3 were $4.9 billion, a decrease of 3.8% from the comparable quarter the previous year. Comparable store sales were down 4% on an owned basis and down 3.3% on an owned-plus-licensed-plus-marketplace basis. Net income in the quarter was $150 million compared to a net loss of $22 million in the same quarter the previous year. Diluted earnings per share was $0.53 compared to ($0.08) in the second quarter of 2023.
“During the second quarter, we delivered strong earnings performance in a challenging consumer environment,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “We are seeing signs of our strategy taking root, including two consecutive quarters of positive comparable sales in Macy’s First 50 locations. We are encouraged by the early traction of our Bold New Chapter and remain committed to returning Macy’s, Inc. to sustainable profitable growth.”
The retailer’s First 50 stores are part of its A Bold New Chapter initiative that seeks to enhance the department store’s in-store shopping experience. The “New Chapter” effort unveiled in February also includes closing 150 stores over the next two years, investing in another 350 stores, and expanding small-store formats.
Net sales at Macy’s nameplate stores were down 4.4% with comparable sales down 4.5% on an owned basis and down 3.6% on an owned-plus-licensed-plus-marketplace basis.
Macy’s go-forward business comparable sales, inclusive of Macy’s go-forward locations and digital, were down 4.3% on an owned basis and down 3.3% on an owned-plus-licensed-plus-marketplace basis. Go-forward locations comparable sales were down 2.4% on an owned basis and down 2.3% on an owned-plus-licensed basis.
First 50 locations comparable sales, included within go-forward locations comparable sales, up 0.8% on an owned basis and up 1.0% on an owned-plus-licensed basis. Non-First 50 go-forward locations comparable sales, included within go-forward locations comparable sales, were down 3.8% on an owned basis and down 3.7% on an owned-plus-licensed basis. Macy’s non-go-forward locations comparable sales down 6.5% on both an owned and owned-plus-licensed basis.
At Bloomingdale’s, net sales were down 0.2% with comparable sales down 1.1% on an owned basis and down 1.4% on an owned-plus-licensed-plus-marketplace basis. Bluemercury net sales were up 1.7% and comparable sales were up 2.0% on an owned basis.
