US department store chain Macy’s has reported a 3.5% decline in net sales, totalling $22.29bn in the fiscal year 2024 (FY24), compared to $23.09bn in FY23.
The company’s comparable sales for the fiscal year decreased 2% on an owned basis and dipped 0.9% on an owned-plus-licensed-plus-marketplace basis.
Go deeper with GlobalData
During the 52 weeks ended 1 February 2025, Macy’s saw growth in comparable owned-plus-licensed-plus-marketplace sales at its top-performing First 50 locations, at Bloomingdale’s and at Bluemercury.
But this was largely negated by underperformance at its other locations and on its digital platform.
Macy’s brand experienced a 4.2% reduction in sales, while Bloomingdale’s saw a modest net sales increase of 1%. Bluemercury fared better with a net sales increase of 2.8% and a 4% rise in comparable sales on an owned basis.
The company’s other revenue streams brought in $713m – a $61m or 7.9% decrease.
Over FY24, net income of Macy’s stood at $582m, showing significant growth from the previous year’s $45m.
Earnings per share (EPS) on a GAAP [generally accepted accounting principles] diluted basis improved to $2.07, up from $0.16 in FY23.
The gross margin rate remained stable at 38.4%, unaffected by Macy’s shift to cost accounting within its nameplate.
The company’s selling, general and administrative expenses saw a reduction of $45m to $8.3bn, reflecting the company’s emphasis on cost management alongside investments aimed at enhancing customer experience and driving future sales.
Under its Bold New Chapter strategy, Macy’s shut down 64 underperforming locations in FY24, which resulted in asset sale gains for the current year.
At the close of FY24, its total debt stood at $2.8bn.
In the fourth quarter (Q4) of FY24, Macy’s net sales fell by 4.3% to $7.8bn, with comparable sales decreasing 1.1% on an owned basis but increasing by 0.2% on an owned-plus-licensed-plus-marketplace basis.
Quarterly figures show Macy’s brand net sales down by 5.3%, while Bloomingdale’s and Bluemercury report increases of 2% and 2.4% respectively.
The quarter also saw an improvement in GAAP diluted EPS to $1.21, compared to the previous year’s loss per share of $0.47.
Macy’s chairman and CEO Tony Spring stated: “As we close out the first year of the Bold New Chapter strategy, investments in the customer experience enabled us to achieve our highest comparable sales of the year, our best performance in 11 quarters.
“At Macy’s, our First 50 locations delivered four quarters of increased sales, while our luxury nameplates, Bloomingdale’s and Bluemercury, achieved accelerated annual sales growth. As we enter the second year of our strategy, we plan to scale initiatives that are resonating with our customers to drive long-term profitable growth and further unlock shareholder value.”
Looking ahead to fiscal 2025, Macy’s anticipates net sales ranging from $21bn to $21.4bn, with comparable owned-plus-licensed-plus-marketplace sales expected to fall between 2.0% and 0.5% compared to FY24 results.
