Macy`s Inc
Q4 2024 Earnings
Did M Beat Earnings? Q4 2024 Results
Macy's closed out fiscal 2023 with a stronger-than-expected quarter, delivering adjusted diluted EPS of $2.45 against a consensus estimate of $1.96, a beat of 25.00%, as improved merchandise margins and disciplined cost management offset a broader sales decline. Revenue came in at $8.38 billion, ahead of the $8.15 billion consensus by 2.71%, though net sales still fell 1.8% year-over-year as comparable owned-plus-licensed sales slid 4.2% on a 13-week basis. The standout driver was gross margin expansion of 340 basis points to 37.5%, fueled by lower clearance markdowns and better delivery expense leverage. The results arrived alongside the company's sweeping "A Bold New Chapter" strategic plan, which calls for closing roughly 150 underperforming Macy's locations while reinvesting in approximately 350 go-forward stores and expanding Bloomingdale's and Bluemercury. Looking ahead, management guided fiscal 2024 net sales of $22.20 billion to $22.90 billion and adjusted diluted EPS of $2.45 to $2.85, framing the year as a transition period before anticipated low-single-digit comparable sales growth resumes in 2025.
- Gross margin expansion of 340 basis points driven by lower clearance markdowns and improved delivery expense
- Beauty strength across nameplates, particularly fragrances and prestige cosmetics
- Bluemercury comparable sales growth of 2.3% driven by skincare and color cosmetics
- SG&A expense discipline resulted in $51 million reduction year-over-year
- Brick-and-mortar sales roughly flat while digital sales decreased 4%
“I am grateful to all our teams for their continued commitment to our customers during the holiday season. Throughout the fourth quarter, we delivered an improved omnichannel experience, with effective merchandising and a clear demonstration of value that resulted in a strong close to the year.”
Macy's CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2024, Macy's guided net sales of $22.2 billion to $22.9 billion, comparable owned-plus-licensed-plus-marketplace sales change of down ~1.5% to up 1.5% versus 2023, and adjusted diluted EPS of $2.45 to $2.85. This is characterized as a transition and investment year reflecting continued operational progress and investments in key customer-focused initiatives. Adjusted diluted EPS guidance excludes any potential impact from the proposed credit card late fee ruling and does not consider the impact of any potential future share repurchases. Beginning in 2025, the company expects low-single-digit annual comparable sales growth, annual SG&A dollar growth below the historic rate of inflation of 2%-3%, annual adjusted EBITDA dollar growth in the mid-single-digit range, capital spend below 2024 levels, and free cash flow to return to pre-pandemic levels.
M YoY Financials
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.