Companies /Consumer Cyclical
Macy`s Inc
NYSE: M Department Stores
$22.67
▼ $0.12 (−0.53%) today
Markets closed · 11:06pm ET

Macy's (M) Q3 2024 Earnings

Reported Dec 11, 2024, 6:58am ET · SEC source
$0.04
Beat +58.73%
EPS · est. $0.03 Adjusted

Adjusted diluted EPS of $0.04 excludes $23 million impairment, restructuring and other benefits, $1 million loss on early retirement of debt, and includes a $0.04 adjustment related to delivery expense misstatement correction ($13 million, of which $9 million relates to first half of 2024)

$4.9B
Beat +3.91%
Revenue · est. $4.7B
−14.4%
Trailing market
M vs S&P since report
11 quarters
Consecutive EPS beats

How Did M Stock React to Q3 2024 Earnings?

% change · around the report
0+4%+8%Dec 11Dec 12report 6:58am ETearnings+0.5%+10.1%
0+4%+8%Dec 11Dec 12earnings+0.5%+10.1%
M +10.1%S&P 500 +0.5%
0+4%+8%Dec 11Dec 12report 6:58am ETearnings+1.4%+10.1%
0+4%+8%Dec 11Dec 12earnings+1.4%+10.1%
M +10.1%NASDAQ +1.4%
0+5%+10%Dec 10Dec 19report 6:58am ETearnings−2.0%+6.3%
0+5%+10%Dec 10Dec 19earnings−2.0%+6.3%
M +6.3%S&P 500 −2.0%
0+5%+10%Dec 10Dec 19report 6:58am ETearnings−0.1%+6.3%
0+5%+10%Dec 10Dec 19earnings−0.1%+6.3%
M +6.3%NASDAQ −0.1%
−0.84%
Day of report
−1.63%
Next session
−4.40%
One week
−16.83%
30 days

S&P 500 over the same 30 days: −2.42%.

Did M Beat Earnings? Q3 2024 Results

Yes. Macy's reported Q3 2024 earnings of $0.04 a share on Dec 11, 2024, beating the $0.03 consensus estimate by 58.7%. Revenue was $4.9B against a $4.7B estimate.

Macy's delivered a better-than-expected third quarter, but the headline numbers were overshadowed by the conclusion of an internal investigation into intentional delivery expense misstatements spanning nearly three years. The department store retailer posted adjusted diluted EPS of $0.04, beating the $0.03 consensus estimate by 58.73%, while revenue of $4.90 billion topped expectations by 3.91%, though it still fell 2.7% year-over-year. The quarter's defining story was the revelation that a single employee had deliberately hidden approximately $151 million in cumulative delivery expenses from Q4 2021 through Q3 2024, forcing a $13 million gross margin adjustment in the period and contributing a $0.04 impact to adjusted diluted EPS. Operationally, the picture was mixed; the Macy's First 50 locations strategy posted a third consecutive quarter of comparable sales growth at 1.9%, while Bloomingdale's and Bluemercury also gained ground, yet broader Macy's locations and digital channels remained soft. Looking ahead, management narrowed its full-year adjusted diluted EPS guidance to $2.25 to $2.50, down from a prior range of $2.55 to $2.90, largely reflecting an estimated $66 million Q4 delivery expense impact, though net sales guidance was lifted to $22.30 billion to $22.50 billion.

Key Takeaways
  • Macy's First 50 locations delivered third consecutive quarter of comparable sales growth of 1.9%
  • Bloomingdale's comparable sales growth of 3.2% on owned-plus-licensed-plus-marketplace basis driven by contemporary apparel, beauty and digital
  • Bluemercury comparable sales growth of 3.3%, fifteenth consecutive quarter of growth, driven by skincare offerings
  • Fragrances, dresses and men's and women's active apparel were strong at Macy's
  • Asset sale gains of $66 million from monetization of non-go-forward assets
  • Macy's Media Network revenue grew 13.9% reflecting higher advertiser and campaign counts

“Our third quarter results reflect the positive momentum we are building through our Bold New Chapter strategy. We are encouraged by the consistent sales growth in our Macy's First 50 locations and the strong performance of Bloomingdale's and Bluemercury. Quarter-to-date, comparable sales continue to trend ahead of third quarter levels across the portfolio. Looking ahead, we remain committed to achieving sustainable, profitable growth for Macy's, Inc.”

Macy's CEO, on the earnings call

What Was Macy's's Outlook in Q3 2024?

Macy's updated its full-year 2024 guidance: net sales of $22.3 billion to $22.5 billion (up from $22.1 billion to $22.4 billion previously); comparable owned-plus-licensed-plus-marketplace sales change of down ~1.0% to ~flat versus 2023 (improved from down ~2.0% to down ~0.5%); gross margin rate of 38.2% to 38.3% (lower than prior 39.0% to 39.2% due to delivery expense impacts); adjusted EBITDA as a percent of total revenue of 8.0% to 8.4%; and adjusted diluted EPS of $2.25 to $2.50 (down from $2.55 to $2.90 previously, reflecting delivery expense corrections). Updated guidance includes an estimated $79 million full-year delivery expense impact ($13 million in Q3 and $66 million estimated for Q4). Management noted quarter-to-date comparable sales continue to trend ahead of Q3 levels across the portfolio.

M YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$2.0B$4.0B$5.0B$4.9BRevenue$2.1B$1.9BGross Profit$83.0M$64.0MOperating Income$41.0M$28.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income
M income statement, Q3 2024 versus Q3 2023
Metric Q3 2024 Q3 2023 Year over year
Revenue $4.9B $5.0B −2.7%
Gross Profit $1.9B $2.1B −12.0%
Operating Income $64.0M $83.0M −22.9%
Net Income $28.0M $41.0M −31.7%

M Revenue by Segment

Credit Card Revenues$120.0M
Macy's Media Network$41.0M+13.9%

Figures from SEC filings and company reports. Not investment advice.