Macy's Tops Q1 Forecast, But Sales Decline
Macy’s may have exceeded estimates for first-quarter sales, but the department store chain continues to struggle, reporting a dip in revenue to start its fiscal year.
For the quarter ended May 3, net sales were $4.6 billion, down from $4.8 billion in the comparable quarter the previous year. Net income was $38 million, or $0.13 per diluted share, down from $62 million, or $0.22 per diluted share.
Companywide comparable sales were down 2% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis. Comparable sales at Macy’s Reimagine 125 locations were down 1.3% on an owned basis and down 0.8% on an owned-plus-licensed basis.
At Bloomingdale’s, comparable sales on an owned basis and an owned-plus-licensed-plus-marketplace basis rose 3% and 3.8%, respectively. Bluemercury reported comparable sales growth of 1.5%, marking its 17th consecutive quarter of growth.
“We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger-than-expected performance across all three of our nameplates,” said Tony Spring, chairman and chief executive officer of Macy’s Inc. “Our first-quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy’s Inc. to sustainable, profitable growth.”
Within the Macy’s nameplate segment, company officials said the 125 Reimagine locations outperformed across all categories, while Backstage store-within-a-store locations outperformed the full-line Macy’s stores in which they operate by several hundred basis points.
Growth at Bloomingdale’s was driven in part by brand launches such as Prada shoes and handbags online, Reformation ready-to-wear, and Burberry men’s and ready-to-wear. Company officials said its aspirational-to-luxury positioning, on-trend assortments, and service orientation continue to attract new customers and vendor partners.
Bluemercury’s results were driven by 24 new and remodeled locations opened in fiscal 2024, continued strength in dermatological skincare, recent brand launches, and a more targeted approach to loyalty communications and offers.
