Macy's (M) Q1 2024 Earnings
GAAP EPS of $0.22 includes $19 million in impairment, restructuring and other costs ($0.07 pre-tax, $0.05 after-tax impact per share)
Did M Beat Earnings? Q1 2024 Results
Yes. Macy's reported Q1 2024 earnings of $0.27 a share on May 21, 2024, beating the $0.15 consensus estimate by 80.0%. Revenue was $5.0B against a $4.9B estimate.
Macy's delivered a stronger-than-expected first quarter, posting adjusted diluted EPS of $0.27 against a consensus estimate of $0.15, an 80% beat, while total revenue of $5.00 billion cleared Wall Street's $4.86 billion forecast by 2.85%, even as sales declined 3.3% year over year amid cautious consumer spending on discretionary goods. The clearest signal in the quarter came from the company's "First 50" pilot stores under CEO Tony Spring's turnaround strategy, where comparable owned sales rose 3.3%, offering early evidence that targeted investments in product and presentation are gaining traction, though the broader Macy's nameplate saw comparable owned sales slip 1.6%. GAAP diluted EPS of $0.22 reflected a $19 million charge for impairment, restructuring, and other costs. Gross margin contracted 80 basis points to 39.2%, pressured by markdowns on slow-moving warm-weather inventory. Looking ahead, management raised the low end of its full-year guidance, now targeting net sales of $22.30 billion to $22.90 billion and adjusted diluted EPS of $2.55 to $2.90, framing 2024 as a deliberate transition year.
- First 50 locations achieved comparable owned sales growth of 3.3%, validating Bold New Chapter strategy investments
- Bluemercury comparable sales up 4.3% on an owned basis
- Bloomingdale's comparable sales up 0.8% on an owned basis
- SG&A expense dollars declined $39 million through ongoing expense discipline
- Delivery expense as percent of net sales improved 20 basis points from supply chain efficiency
- Macy's Media Network revenue grew $8 million to $37 million from increased vendor engagement
“We are encouraged by our customers' response to our Bold New Chapter strategy resulting in sales near the high end of our outlook. Our teams executed with discipline and efficiency, which contributed to first quarter earnings that exceeded our expectations.”
Macy's CEO, on the earnings call
What Was Macy's's Outlook in Q1 2024?
Macy's updated its full-year 2024 guidance (52-week basis): net sales of $22.3 billion to $22.9 billion (raised low end from $22.2 billion), comparable owned-plus-licensed-plus-marketplace sales change of down ~1.0% to up 1.5% versus 2023 (narrowed from down ~1.5% to up 1.5%), and adjusted diluted EPS of $2.55 to $2.90 (raised from $2.45 to $2.85). The company views 2024 as a transition and investment year focused on customer-facing strategic initiatives. Guidance assumes consumers will continue to be discerning with discretionary purchases and provides flexibility for the competitive and promotional environment. Adjusted diluted EPS guidance excludes any potential impact from the credit card late fee ruling (which was stayed on May 10, 2024) and potential future share repurchases.
M YoY Financials
| Metric | Q1 2024 | Q1 2023 | Year over year |
|---|---|---|---|
| Revenue | $5.0B | $5.2B | −3.3% |
| Gross Profit | $1.9B | $2.2B | −13.0% |
| Operating Income | $125.0M | $244.0M | −48.8% |
| Net Income | $62.0M | $155.0M | −60.0% |
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.