Macy’s Impressive Q4 Performance: Surges Past Earnings Estimates with Adjusted EPS of $2.45 and Strong Gross Margin of 37.5%
Macy’s Q4 Earnings Highlights:
– Adjusted EPS exceeds estimates at $2.45 (Estimated: $1.99) 🟢
– Net Sales at $8.12B meet expectations (YoY decrease of 1.7%) 🟢
– Gross Margin stands at 37.5%, surpassing the estimated 36.5% 🟢
– Inventory at $4.36B, slightly above the estimated $4.29B 🟢
– Owned plus licensed comparable sales down by 4.2%, beating the estimated -5.73% 🟢
– Adjusted net income of $685M surpasses the estimated $553.9M 🟢
– Owned basis comparable sales show a decrease of 5.4%
FY’25 Guidance:
– Net Sales expected to range between $22.2B to $22.9B (Estimated: $22.99B) 🔴
– Adjusted EPS forecasted between $2.45 to $2.85 (Estimated: $2.75) 🟡
– Owned plus Licensed Comparable Sales expected to range from -1.5% to +1.5% (Estimated: +0.71%) 🟡
Strategic Updates:
– Plan to close 150 underproductive locations by 2026.
– Anticipate $600M to $750M in proceeds from closures and asset sales by 2026.
– Bloomingdale’s and Bluemercury footprint to increase by up to 45 locations by 2026.
– $950M asset-impairment charge, primarily linked to store closures.
– Digital sales decline by 4%, while brick-and-mortar sales remain relatively flat.
– Commitment to invest in the remaining 350 Macy’s stores.
CEO Commentary:
– CEO emphasizes “A Bold New Chapter,” challenging the status quo to fundamentally reposition the company.
– Aims to enhance the customer experience, deliver growth, and unlock shareholder value.
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