Macy's Q2 Sales Off Slightly

Second quarter sales at Macy’s were down slightly year-over-year as the department store retailer cited the current “challenging environment” as a key factor in the decline.

Total sales were $5.6 billion, down from sales of $5.65 billion in the comparable quarter the previous year. Comparable sales were down 1.5% on an owned basis and down 1.6% on an owned-plus-licensed basis. Diluted earnings per share were $0.99 and adjusted diluted earnings per share was $1.00. This compares to diluted earnings per share of $1.08 and adjusted diluted earnings per share of $1.29 in the second quarter of 2021.

By division, Macy’s comparable sales were down 2.9% on an owned basis and down 2.8%, on an owned-plus-licensed basis; Bloomingdale’s comparable sales on an owned basis were up 8.8% and on an owned-plus-licensed basis were up 5.8%; and Bluemercury comparable sales were up 7.6% on an owned and owned-plus-licensed basis.

“Despite inflationary pressures, consumers continued to shop Macy's as a style source and leading gifting destination,” said Jeff Gennette chairman and CEO of Macy’s. “Additionally, Bloomingdale's and Bluemercury captured demand for luxury brands, resulting in both nameplates outperforming in the quarter."

Inventory levels at Macy’s were up 7% year-over-year, and the retailer has taken steps during the quarter to cut receipts to bring inventory in line with consumer demand. Officials said the company is targeting “appropriate” inventory levels by the end of 2022 and will continue to flow fresh product in those categories that continue to see strong consumer demand. 

Additionally, Macy’s is also taking markdowns to clear inventory in several categories including seasonal goods, private brand merchandise, sportswear, sleepwear and soft home.

The department store retailer has also restated full-year guidance and anticipates total sales of $24.3 billion to $24.8 billion. Previous guidance called for total year sales of between $24.5 billion and $24.7 billion