Retail

Macy's Future Crushed by Results

Douglas A. McIntyre

Published: May 22, 2024 6:40 am

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• Macy’s Inc. (NYSE: M) posted another weak quarter with plans to further reduce its footprint.
• The retailer has shown it cannot recover despite years-old plans to engineer a turnaround.

Macy’s Inc. (NYSE: M) proved once again that it is more like JCPenney or Sears than it is Walmart. It posted another weak quarter as it continued a retreat that involved closing stores to reduce its footprint. It announced earlier this year that it would shutter 150 stores. At least Macy’s two smaller brands posted some reasonable numbers.

Revenue for the most recently reported quarter fell 2.8% to $4.8 billion. Earnings plunged from $0.56 per share to $0.22. Comparable store sales fell 1.2% on an owned-store basis. Bloomingdale’s comparable store sales in owner-based locations were up 0.8%. Blue Mercury same-store sales rose 4.3%. Guidance for the balance of the year could have been better.

Macy’s has shown it cannot recover despite years-old plans to engineer a turnaround. Its “Bold New Chapter” plans to improve operations have not worked. CEO Tony Spring said results “exceeded our expectations,” which means they must be very low. He added, “Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth.”

Arkhouse Management’s recent bid to take Macy’s private has not worked, and investors should regret this.

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