Companies

Macy’s announces fourth quarter and fiscal 2023 results

Mar 8, 2024 United States

The US company has posted a year-on-year decline in sales and profits for both the fourth quarter and full year, but said it’s in a better financial position to continue its modernisation strategy

“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”, commented Tony Spring, chief executive officer of Macy’s.

Fourth Quarter Results

In the fourth quarter of fiscal 2023, Macy’s reported net sales of 8.1 billion euros, a decline of 1.7%, on a comparable basis to the same period of the previous year. The company added that digital sales were down by 4% year-over-year and brick-and-mortar sales remained roughly flat. In addition, Macy’s fourth quarter comparable sales decreased by 5.4% on an owned basis and by 4.2% on an owned-plus-licensed basis.

In the fourth quarter of the previous fiscal year, the company’s gross margin improved to 37.5% from 34.1% in a similar quarter of fiscal 2022.

The department store chain also posted a diluted loss per share of 0.26 US dollars and adjusted diluted earnings per share of 2.45 US dollars, as compared, respectively, to diluted earnings per share of 1.83 US dollars and adjusted diluted earnings per share of 1.88 US dollars recorded in the fourth quarter of the previous year.

Full Year Results

Macy’s net sales in 2023 amounted to 23.1 billion euros, which reflects a decline of 5.5%, on a comparable basis to the prior year. In total, digital sales were down by 7% year-over-year and brick-and-mortar sales were down by 5% year-over-year.

The US-based company recorded full year diluted earnings per share of 0.38 US dollars and adjusted diluted earnings per share of 3.50 US dollars, as compared to diluted earnings per share of 4.19 US dollars and adjusted diluted earnings per share of 4.48 US dollars in 2022.

Fiscal 2024 Guidance

“Our portfolio of iconic and globally recognized nameplates, healthy balance sheet and fortified operations position us to execute A Bold New Chapter. This strategy is designed to create a more modern Macy’s, Inc. that is expected to generate meaningful value for our shareholders in the years ahead”, added Tony Spring, chief executive officer of Macy’s.

For fiscal 2024, Macy’s expects to achieve between 22.2 billion euros and 22.9 billion euros in net sales and adjusted diluted earnings per share between 2.45 US dollars and 2.85 US dollars.

Image Credits: nytimes.com

United States Fashion Macys Quarter Results Results Retail Year Results