Latest news with #Macy'sInc
Yahoo
30-05-2025
- Business
- Yahoo
Macy's Maintains Sales Outlook
Macy's Inc. posted better-than-expected quarterly results a sign the company's strategy of focusing on its best-performing locations is paying off despite weakening consumer sentiment and tariff volatility. Bloomberg's Romaine Bostick has more on the story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
29-05-2025
- Business
- Fibre2Fashion
US' Macy's reaffirms FY26 sales outlook, lowers profit forecast
American departmental store of fashion clothing and accessories, Macy's Inc, has reaffirmed its full fiscal 2026 (FY26) net sales guidance, projecting between $21 billion and $21.4 billion, unchanged from the March 6 outlook. Comparable owned-plus-licensed-plus-marketplace sales are expected to decline by approximately 2 per cent to 0.5 per cent versus 2024, while the go-forward business is forecast to see a sales change ranging from a 2 per cent decline to flat—also unchanged. However, the company revised its profitability expectations downward. Adjusted EBITDA as a percentage of total revenue is now projected between 7.4 per cent and 7.9 per cent, compared to the earlier range of 8.4 per cent to 8.6 per cent. Macy's has reaffirmed its FY26 net sales forecast of $21â€'$21.4 billion but lowered its profit outlook. Q1 FY25 net sales fell 5.1 per cent YoY to $4.6 billion, while adjusted EPS reached $0.16. Bloomingdale's and Bluemercury saw sales growth. Other revenue rose 26 per cent to $194 million. CEO Tony Spring expressed confidence in the strategy driving Macy's return to profitable growth. Similarly, core adjusted EBITDA margin has been lowered to 7-7.5 per cent from the previous 8-8.2 per cent. The adjusted diluted earnings per share (EPS) guidance have also been reduced to a range of $1.6 to $2, down from $2.05 to $2.25. These figures reflect the impact of FY24 store closures, notably Macy's nameplate locations, which had contributed approximately $700 million in annual net sales, Macy's said in a press release. Meanwhile, Macy's achieved net sales decreased 5.1 per cent year-over-year (YoY) to $4.6 billion in the first quarter (Q1) of fiscal 2025 (FY25) ended May 3, 2025, exceeding the company's prior guidance range. The company's comparable sales were down 2 per cent on an owned basis. It reported GAAP diluted EPS of $0.13, adjusted diluted EPS of $0.16, above the company's prior guidance range. The net income of the company in Q1 was $38 million, or 0.8 per cent of total revenue, and adjusted net income was $46 million, or 1 per cent of total revenue. The gross margin rate of 39.2 per cent was flat, reflecting improved merchandise margin offset by higher delivery expense as a percent of net sales. Bloomingdale's net sales were up 2.6 per cent YoY, with comparable sales up 3 per cent on an owned basis and up 3.8 per cent on an owned-plus-licensed-plus-marketplace basis. Bluemercury net sales were up 0.8 per cent and comparable sales were up 1.5 per cent on an owned basis. Comparable sales at the 125 Reimagine locations declined by 1.3 per cent on an owned basis and by 0.8 per cent on an owned-plus-licensed basis. Other revenue in Q1 rose by $40 million, or 26 per cent, reaching $194 million. This included a $37 million increase in credit card net revenues, up 31.6 per cent to $154 million, and an $3 million rise in net revenue from Macy's media network, which grew 8.1 per cent to $40 million. The selling, general and administrative (SG&A) expense of $1.9 billion increased $2 million. 'We continued to execute against our bold new chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates,' said Tony Spring, chairman and chief executive officer of Macy's, Inc . 'Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy's, Inc to sustainable profitable growth.' Fibre2Fashion News Desk (SG)
Yahoo
28-05-2025
- Business
- Yahoo
Macy's sees opportunity to take share as tariffs roil pricing
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Macy's Inc. reported a better-than-expected Q1, with net sales down just over 5% year over year to $4.6 billion, and comps, including licensed and marketplace sales, down 1.2%. Credit card revenue rose more than 31% to $154 million and Macy's Media Network net revenue rose 8.1% to $40 million. Bloomingdale's net sales rose 2.6% and comps 3.8%. Bluemercury net sales rose 0.8% and comps 1.5%, its 17th straight quarter of comp growth. Store closures helped drive Macy's namesake net sales down 6.5% and comps down 2.1%. Excluding stores set to close, comps fell 1.9%, while at 125 overhauled 'Reimagine' stores comps fell 0.8%. Inventory was nearly flat (down 0.5%). Gross margin was flat to last year at 39.2%, as better merchandise margin was offset by higher delivery costs. Net income tumbled 38.7% to $38 million. At a time of uncertainty that is shaping consumer behavior across income cohorts, Macy's executives are on high alert. CEO Tony Spring sees opportunity in the age of tariffs, though, as long as customers encounter the right product at the right price. This has meant negotiations with vendors, shifts in supply chain and a close eye on price elasticity. When it comes to sourcing, the retailer is in a better position than it was just months ago. At the end of last year, about 20% of Macy's Inc. inventory was from China, with national brands sourcing about 18% and owned brands about 27%. Last year nearly a third of private labels were made in China and pre-pandemic more than half were. Tariffs' full impact on prices is still to come, however. The first quarter saw very little, but that 'is working its way into the system slowly,' Spring said. Macy's Inc. estimates tariffs as currently structured will siphon about 20 to 40 basis points from annual gross margin. That includes inventory purchased under the 145% China tariffs, shared costs with suppliers, vendor discounts and selective price increases, but not any potential tariff increases on goods from the European Union or other countries. Macy's Inc. has 'vendors that are more committed to our brands and to our partnership than I've seen at my time with the company,' and Macy's and Bloomingdale's both have an opportunity to grab market share. But that doesn't mean that Macy's is stockpiling inventory to avoid tariffs, he said. 'Remember, as a multibrand, multicategory retailer, we have a lot of optionality,' he said. 'If something isn't priced fairly, we're not going to buy it. If a price point is important, we're going to hold it. We're going to negotiate fairly and aggressively with our partners, as well as with our factories. And right now, I feel good about how we positioned our pricing in our inventory for the remainder of the year, but we've got a lot in front of us, and we're going to take it kind of day by day and month by month.' This cautious approach to inventory management and pricing is what Fitch Ratings Senior Director David Silverman expects from Macy's and other retailers, and he, too, sees opportunity for Macy's to gain share. 'Given the company's reasonable financial position, good cash flow, and limited near term debt maturities, the company has the ability to absorb increased costs and the potential for market share gains if it chooses to support a competitive pricing position in the near term,' he said in emailed comments. 'Longer term, Macy's success will hinge on its ability to successfully execute against its 'Bold New Chapter' strategies to combat secular challenges affecting traffic at malls and department stores." Questions about that linger, given the comp decline at Macy's Reimagine stores, according to GlobalData Managing Director Neil Saunders. 'This is slightly concerning as, ideally, these stores need to show positive progress to justify the Macy's Bold New Chapter strategy,' he said in emailed comments. 'In our view, management gets a pass for now as it is still early in the reinvention timeline; things are also being executed against the backdrop of a market that is becoming more difficult.' Still, Macy's stores require more newness and even unexpected brands, in light of the assertiveness at competitors like Dick's and Nordstrom, according to Saunders. When asked Wednesday about further improvements to Reimagine stores and the possibility or timing of adding more stores to that fleet, Spring didn't provide many details. 'As the year progresses, we'll talk about what are the opportunities to test additional ideas in additional stores, and what the expansion might be in 2026,' he said. 'But so far I would say the improvement in the 125 — we continue to see the differential between the rest of the Macy's stores, and I'm cautiously optimistic that we have opportunity to improve that trend as the year progresses.' Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Macy's latest earnings show the CEO's turnaround plan is working despite a looming tariff threat
Macy's Inc CEO Tony Spring agrees with many people's assessment that a great number of its namesake department stores are substandard and deserve to be closed. So Spring, who took on the top job last year, has been closing dozens of stores and focusing on 125 Macy's locations that the retailer believes have the most potential. The company's latest set of financial results, released on Wednesday, suggest Spring's strategy is sound, even if it ultimately means a smaller footprint for the retail chain. At the 125 stores that the company has chosen to focus on, sales fell by only 1.3% compared to the same quarter last year. Analysts said those figures aren't bad, given the rise in consumer anxiety this spring and the shift toward essentials and low prices. And overall, Macy's, which also owns Bloomingdale's and luxury beauty chain Bluemercury, saw comparable sales fall by 2%, well below the 3.9% decline Wall Street expected. At the stores that Macy's calls the 'Reimagine 125,' the company has prioritized higher staffing levels, renovations to enhance product presentation and the quick introduction of new merchandise. That's all part of the company's three-year turnaround program, launched last year and named 'Bold New Chapter.' For now, the performance of the Reimagine 125 is crucial to proving to Wall Street that Macy's can become a more dynamic retailer again. 'These stores need to show positive progress to justify the Macy's Bold New Chapter strategy,' Neil Saunders, managing director at analytics firm GlobalData wrote in a research note. Macy's has done a good job so far to stop the bleeding, but the store still faces major challenges as it struggles to connect with consumers. Despite positive signs coming out of the 'Reimagine 125,' many other stores in the Macy's fleet are lagging. Once the company is done with its current store-closing campaign, it will have 350 Macy's stores, a bit more than half the number a decade ago. And while Macy's primarily sells discretionary items, it can only blame consumer sentiment so much. Overall sales for the company fell 5.1% to $4.6 billion. Meanwhile, rivals like Dillard's and the newly private Nordstrom have bested the company. And stellar results from clothier Abercrombie & Fitch and Dick's Sporting Goods on Wednesday showed how well-run retailers with neatly appointed stores offering what shoppers want can thrive in this environment. And although Macy's kept its sales forecast for the year, it did lower its full-year profit guidance, citing 'higher tariffs, more discounting by competitors and 'some moderation' in discretionary suggests the company will absorb a good chunk of any price increases caused by tariffs. But Spring told CNBC there would inevitably be some price hikes. About 20% of what Macy's sells originates in China.'It's not a one-size-fits-all kind of approach,' he told CNBC. 'There are going to be items that are the same price as they were a year ago. There is going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn't merit the quality or the perceived value by the consumer.' This story was originally featured on
Time of India
28-05-2025
- Business
- Time of India
Macy's beats Q1 estimates but lowers 2025 profit outlook amid tariff impact
Macy's Inc. reported a decline in first-quarter sales and profit on Wednesday, but still managed to surpass Wall Street expectations. The department store chain, however, revised its full-year profit forecast downward, citing more cautious consumer behaviour and the rising cost impact from US trade tariffs. Sales for the three months ended May 3 dropped to $4.79 billion from $5 billion a year ago, beating analysts' expectations of $4.42 billion, according to FactSet. Comparable sales, which include online and store performance, fell 2%. Macy's noted comparable sales growth at its higher-end Bloomingdale's and cosmetics chain Bluemercury, AP reported. Despite the overall decline, Macy's CEO Tony Spring said the company is carefully managing its pricing strategy amid the evolving tariff landscape. 'I think it's important to understand that we are not just broadly increasing price,' Spring said during a conference call. 'We're being incredibly surgical about the situation with tariffs.' Spring added that Macy's is diversifying its supply chain and adjusting orders where necessary. 'With the recent announcement of these tariffs, we've renegotiated orders with suppliers. We've canceled or delayed orders where the value proposition is just not where it needs to be,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doutora: 'Um hábito simples antes de dormir me fez perder 1kg a cada 7 dias!' Revista Saúde Saiba Mais Undo The retailer disclosed that about 20% of its products came from China at the end of its last fiscal year, with private label brands sourcing 27% from China, down from 32% the year before. Macy's earned $38 million, or 13 cents per share, in the quarter, compared with $62 million, or 22 cents per share, a year earlier. Excluding one-time items, adjusted earnings came in at 16 cents per share — a penny above analyst estimates. Macy's maintained its 2025 annual sales guidance between $21 billion and $21.4 billion but lowered its adjusted earnings projection to a range of $1.60 to $2 per share, down from its earlier forecast of $2.05 to $2.25. Analysts had anticipated $1.91 per share in adjusted profit. Shares rose 1% Wednesday following the earnings release. Industry expert Neil Saunders of GlobalData noted Macy's quarter was relatively solid, especially as the company continues to shutter underperforming stores. 'The 2.0% dip in comparable sales is below market growth but is not entirely unexpected,' Saunders wrote. 'It is also, barring the robust holiday quarter, a somewhat better performance than Macy's delivered across most of the last fiscal year.' The company previously announced plans to close 66 stores, most of which occurred during the first quarter. Macy's joins a growing list of major US retailers navigating rising tariff-related costs and a cautious consumer base. American Eagle Outfitters and Ross Stores recently withdrew their financial outlooks, citing economic uncertainty. Target and Home Depot have also warned of pricing pressures due to tariffs. President Donald Trump's tariff policies have sparked industry-wide concern. While a recent agreement scaled back some import taxes on Chinese goods to 30% and delayed others, the administration continues to float threats of new levies, including a potential 50% tax on EU imports and a 25% tariff on smartphones unless domestically produced. Despite the pressures, Spring said Macy's remains committed to balancing competitive pricing and margin stability. 'We're making selective price increase in selective brands, selective categories, because we believe the value equation for the customer is still very relevant,' he said. 'So some of the impact on our gross margin this year is going to be around the tariffs, but we're also investing in getting market share because we really do believe as we get into the back half of the year, that price value dimension is going to be very critical. ' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
