Macy's 2025 sales and profit forecasts miss expectations
Macy's flagship in New York Credits: Macy's Inc. In line with many of its rivals, US department store chain Macy’s reported fourth-quarter results that surpassed expectations, yet its sales and profit projections for the upcoming year fell short of investor hopes. The company cited "external uncertainties" as a factor contributing to anticipated weaker future performance. Macy's projected net sales for the current fiscal year to range from 21 billion dollars to 21.4 billion dollars, which is below the average consensus estimate. This forecast accounts for the revenue reduction resulting from the closure of over 60 Macy's stores in the preceding year. Macy’s also indicated that it anticipates sales from both e-commerce and stores open for at least a year to decline by as much as 2 percent in 2025 compared to the previous year, with adjusted earnings per share expected to be between 2.05 dollars and 2.25 dollars, both figures below the average analyst estimates. Macy's Q4 results exceed previous outlook For the fourth quarter of 2024, the company achieved diluted earnings per share of 1.80 dollars, exceeding its previously provided guidance range. Net sales for the quarter decreased by 4.3 percent to 7.8 billion dollars, and comparable sales were down 1.1 percent on an owned basis; however, owned-plus-licensed-plus-marketplace comparable sales improved by 0.2 percent. Macy's First 50 locations demonstrated a fourth consecutive quarter of comparable sales growth, rising by 0.8 percent on an owned basis and 1.2 percent on an owned-plus-licensed basis. Bloomingdale's reported owned comparable sales growth of 4.8 percent and its highest fourth-quarter owned-plus-licensed-plus-marketplace comparable sales growth of 6.5 percent. Bluemercury's comparable sales increased by 6.2 percent. Tony Spring, chairman and chief executive officer of Macy’s, Inc., stated, “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. 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.” Weakness in digital and non-first 50 locations impact Macy's full year For the fiscal year 2024, Macy’s, Inc. net sales decreased by 3.5 percent to 22.3 billion dollars, with comparable sales down 2 percent on an owned basis and down 0.9 percent 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 primarily offset by weakness in Macy’s non-First 50 locations and the digital channel.
In line with many of its rivals, US department store chain Macy’s reported fourth-quarter results that surpassed expectations, yet its sales and profit projections for the upcoming year fell short of investor hopes. The company cited "external uncertainties" as a factor contributing to anticipated weaker future performance.
Macy's projected net sales for the current fiscal year to range from 21 billion dollars to 21.4 billion dollars, which is below the average consensus estimate. This forecast accounts for the revenue reduction resulting from the closure of over 60 Macy's stores in the preceding year.
Macy’s also indicated that it anticipates sales from both e-commerce and stores open for at least a year to decline by as much as 2 percent in 2025 compared to the previous year, with adjusted earnings per share expected to be between 2.05 dollars and 2.25 dollars, both figures below the average analyst estimates.
Macy's Q4 results exceed previous outlook
For the fourth quarter of 2024, the company achieved diluted earnings per share of 1.80 dollars, exceeding its previously provided guidance range. Net sales for the quarter decreased by 4.3 percent to 7.8 billion dollars, and comparable sales were down 1.1 percent on an owned basis; however, owned-plus-licensed-plus-marketplace comparable sales improved by 0.2 percent.
Macy's First 50 locations demonstrated a fourth consecutive quarter of comparable sales growth, rising by 0.8 percent on an owned basis and 1.2 percent on an owned-plus-licensed basis. Bloomingdale's reported owned comparable sales growth of 4.8 percent and its highest fourth-quarter owned-plus-licensed-plus-marketplace comparable sales growth of 6.5 percent. Bluemercury's comparable sales increased by 6.2 percent.
Tony Spring, chairman and chief executive officer of Macy’s, Inc., stated, “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. 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.”
Weakness in digital and non-first 50 locations impact Macy's full year
For the fiscal year 2024, Macy’s, Inc. net sales decreased by 3.5 percent to 22.3 billion dollars, with comparable sales down 2 percent on an owned basis and down 0.9 percent 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 primarily offset by weakness in Macy’s non-First 50 locations and the digital channel.
