Macy`s Inc
Q1 2025 Earnings
Did M Beat Earnings? Q1 2025 Results
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, even as the retailer navigated a consumer environment where discretionary spending remained under pressure. Revenue of $5.00 billion edged past the $4.86 billion consensus by 2.85%, though it still fell 3.3% from the prior-year period, reflecting the ongoing headwinds facing department store retail. The key driver behind the earnings beat was early traction in Macy's "A Bold New Chapter" strategy, particularly at its First 50 priority locations, where comparable owned sales grew 3.3%, a meaningful contrast to the broader Macy's nameplate, which posted a 1.6% owned comparable sales decline. Gross margin slipped 80 basis points to 39.2%, partly due to markdowns on slow-moving warm weather merchandise. Looking ahead, management narrowed its full-year adjusted diluted EPS guidance to $2.55 to $2.90 and characterized 2024 as a transition year, with net sales expected in the range of $22.30 billion to $22.90 billion.
- First 50 locations achieved 3.3% owned comparable sales growth, leading the Macy's nameplate turnaround
- Bluemercury posted 4.3% owned comparable sales growth
- Bloomingdale's comparable owned sales up 0.8%
- Macy's Media Network revenue grew $8 million to $37 million from increased vendor engagement
- Delivery expense as a percent of net sales improved 20 basis points from supply chain efficiency efforts
- SG&A expense dollars decreased $39 million from ongoing expense discipline
“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
Forward Guidance & Outlook
Macy's updated its full-year fiscal 2024 guidance (52-week basis): net sales of $22.3 billion to $22.9 billion (updated from $22.2 billion to $22.9 billion), comparable owned-plus-licensed-plus-marketplace sales change of down ~1.0% to up 1.5% versus 2023 (improved from down ~1.5% to up 1.5%), and adjusted diluted EPS of $2.55 to $2.90 (narrowed from $2.45 to $2.85). The company views 2024 as a transition and investment year and assumes customers will continue to be discerning in their discretionary purchases.
M YoY Financials
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.