Macy's (M) Q2 2024 Earnings
Did M Beat Earnings? Q2 2024 Results
Yes. Macy's reported Q2 2024 earnings of $0.53 a share on Aug 21, 2024, beating the $0.30 consensus estimate by 76.7%. Revenue was $5.1B against a $5.1B estimate.
Macy's delivered a stronger-than-expected profit performance in Q2 2024, with adjusted diluted EPS of $0.53 clearing the $0.30 consensus estimate by 76.67%, even as revenue came in marginally light at $5.10 billion against a $5.12 billion expectation and fell 3.5% from the year-ago period. The earnings strength was largely driven by a 240-basis-point expansion in gross margin to 40.5%, fueled by lower discounting and favorable shortage results tied to the company's asset protection efforts. A softer consumer spending backdrop continued to weigh on the Macy's nameplate, where owned comparable sales declined 4.5%, though the company's "First 50" elevated-investment stores posted a second consecutive quarter of positive comps, up 0.8% on an owned basis. Looking ahead, Macy's trimmed its full-year net sales guidance to $22.10 billion–$22.40 billion, citing a more discriminating consumer and heightened promotional environment, while reaffirming its adjusted diluted EPS outlook of $2.55–$2.90, framing 2024 as a deliberate transition year centered on margin discipline and strategic reinvestment.
- Gross margin expansion of 240 basis points to 40.5%, driven by lower year-over-year discounting and favorable shortage from asset protection work
- Merchandise margin increased 210 basis points
- Delivery expense as a percent of net sales improved 30 basis points from lower shipped volumes and cost savings initiatives
- SG&A expense decreased $7 million through cost controls while protecting customer-facing investments
- First 50 locations achieved second consecutive quarter of positive comparable sales (up 0.8% owned, up 1.0% owned-plus-licensed)
- Asset sale gains of $36 million increased $32 million from earlier-than-expected non-go-forward asset sale
- Credit card revenues increased $5 million to $125 million
- Macy's Media Network revenue rose $4 million to $34 million driven by higher advertiser and campaign counts
- Bluemercury net sales up 1.7% with comparable sales up 2.0%
“During the second quarter, we delivered strong earnings performance in a challenging consumer environment. Our colleagues executed with discipline, supporting gross margin expansion and effective expense control throughout the organization. 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.”
Macy's CEO, on the earnings call
What Was Macy's's Outlook in Q2 2024?
Macy's lowered its full-year 2024 net sales guidance to $22.1 billion–$22.4 billion (from $22.3 billion–$22.9 billion), reflecting a more discriminating consumer and heightened promotional environment. Comparable owned-plus-licensed-plus-marketplace sales are now expected to decline approximately 2.0% to 0.5% versus 2023 (previously down 1.0% to up 1.5%). The company reaffirmed its adjusted diluted EPS outlook of $2.55–$2.90. Management characterized 2024 as a transition and investment year, with continued focus on gross margin enhancement and expense control. Adjusted diluted EPS excludes potential impact from the credit card late fee ruling and any future share repurchases.
M YoY Financials
| Metric | Q2 2024 | Q2 2023 | Year over year |
|---|---|---|---|
| Revenue | $5.1B | $5.3B | −3.5% |
| Gross Profit | $2.0B | $2.1B | −5.0% |
| Operating Income | $222.0M | $124.0M | +79.0% |
| Net Income | $150.0M | $17.0M | +781.8% |
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.