“As we close out the first year of the Bold New Chapter strategy, investments in the customer experience enabled us to achieve our highest comparable sales of the year, our best performance in 11 quarters. At Macy’s, our First 50 locations delivered four quarters of increased sales, while our luxury nameplates, Bloomingdale’s and Bluemercury, achieved accelerated annual sales growth”, said Tony Spring, chairman and chief executive officer of Macy’s. “As we enter the second year of our strategy, we plan to scale initiatives that are resonating with our customers to drive long-term profitable growth and further unlock shareholder value”, he added.

Fourth Quarter Results

In the fourth quarter of fiscal 2024, the company’s net sales declined by 4.3% to 7.8 billion US dollars, on a comparable basis to the same period of the previous year, with comparable sales down by 1.1% on an owned basis and up by 0.2% on an owned-plus-licensed-plus-marketplace basis.

The company said that comparable store sales growth at Macy’s First 50 stores, Macy’s digital channel, Bloomingdale’s and Bluemercury was insufficient to offset weakness at Macy’s non-First 50 and non-go-forward stores.

Macy’s fourth quarter gross margin declined 80 basis points to 35.7% in the fourth quarter versus the prior year, impacted by the conversion of Macy’s nameplate to cost accounting. Excluding cost, the merchandise margin benefited from favourable shortage trends compared to last year, offset by product mix.

The company reported GAAP diluted earnings per share of 1.21 US dollars and adjusted diluted earnings per share of 1.80 US dollars, as compared to GAAP diluted loss per share of 0.47 US dollars and adjusted diluted earnings per share of 2.24 US dollars, respectively, in the fourth quarter of 2023.

Full Year Results

Macy’s full year net sales declined by 3.5% to 22.3 billion US dollars, on a comparable basis to fiscal 2023, with comparable sales down by 2.0% on an owned basis and down by 0.9% on an owned-plus-licensed-plus-marketplace basis.

“Comparable owned-plus-licensed-plus-marketplace sales growth at Macy’s First 50 locations, Bloomingdale’s, and Bluemercury was offset primarily by weakness in Macy’s non-First 50 locations and digital channel”, explained the company.

The company reported full year GAAP diluted earnings per share of 2.07 US dollars and adjusted diluted earnings per share of 2.64 US dollars, as compared to GAAP diluted earnings per share of 0.16 US dollars and adjusted diluted earnings per share of 3.28 US dollars in the fiscal year 2023.

Fiscal 2025 Guidance

For fiscal 2025, the retailer expects net sales between 21.0 billion to 21.4 billion US dollars and adjusted diluted earnings per share between 2.05 to 2.25 US dollars.