We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Macys Inc | NYSE:M | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.41 | 2.14% | 19.55 | 19.605 | 19.11 | 19.28 | 4,685,998 | 00:34:59 |
Fourth quarter diluted EPS of $(0.26); Adjusted diluted EPS of $2.45
Fourth quarter gross margin rate of 37.5%, up 340 basis points year-over-year
Achieved full-year 2023 net sales guidance and exceeded adjusted earnings guidance
Ended the year with over $1 billion of cash on balance sheet and generated $1.3 billion of operating cash flow
Announces “A Bold New Chapter,” a strategy to challenge the status quo to fundamentally reposition the company, enhance the customer experience, deliver growth and unlock shareholder value
Macy’s, Inc. (NYSE: M) today reported financial results for the fourth quarter and full-year 2023 and provided fiscal 2024 guidance.
“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,” said Tony Spring, chief executive officer of Macy’s, Inc. “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.”
Fourth Quarter 2023 Highlights
Comparisons are to the fourth quarter 2022 unless noted otherwise. Financial highlights are reported on a 14-week basis for the fourth quarter of 2023 and on a 13-week basis for the fourth quarter of 2022 unless otherwise noted. Please refer to note 1 within the financial tables regarding reclassifications of certain prior year metrics.
Full-Year 2023 Highlights
Comparisons are to full-year 2022 unless noted otherwise. Comparisons to 2019 are provided, where appropriate, to benchmark performance. Financial highlights are reported on a 53-week basis for 2023 and a 52-week basis for 2022 unless otherwise noted. Please refer to note 1 within the financial tables regarding reclassifications of certain prior year metrics.
A Bold New Chapter
Today, the company also announces, A Bold New Chapter, a strategy designed to challenge the status quo to fundamentally reposition the company, enhance the customer experience, deliver growth and unlock shareholder value. Developed by the Macy’s, Inc. leadership team, with the full support of the board of directors, the strategy aligns the organization to reinvigorate relationships with customers through improved shopping experiences with relevant assortments and compelling value. Details of the strategy can be viewed at www.macysinc.com/investors.
“Over the past several years, we have taken proactive actions to fortify our operations, including strengthening our balance sheet, managing expenses and tightening inventory controls,” said Adrian Mitchell, chief operating and chief financial officer, Macy’s, Inc. “The dedicated work of our teams delivered a solid close to 2023 and provides a strong foundation for us to execute A Bold New Chapter.”
Financial Highlights
All amounts in millions except percentages and per share figures
Fourth Quarter
Full Year
2023
2022
2023
2022
Net sales
$
8,120
$
8,264
$
23,092
$
24,442
Comparable Sales
Owned
(5.4
%)
(6.9
%)
Owned plus licensed
(4.2
%)
(6.0
) %
Gross margin
$
3,044
$
2,814
$
8,949
$
9,136
Gross margin rate
37.5
%
34.1
%
38.8
%
37.4
%
Selling, general and administrative expenses
$
2,405
$
2,456
$
8,375
$
8,461
Impairment, restructuring and other costs
$
(1,007
)
$
(16
)
$
(1,027
)
$
(41
)
Net Income (loss)
$
(71
)
$
508
$
105
$
1,177
Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
156
$
887
$
1,156
$
2,568
Diluted earnings (loss) per share (EPS)
$
(0.26
)
$
1.83
$
0.38
$
4.19
Adjusted Net income
$
685
$
524
$
973
$
1,259
Adjusted EBITDA
$
1,168
$
910
$
2,317
$
2,648
Adjusted Diluted EPS
$
2.45
$
1.88
$
3.50
$
4.48
2024 Guidance
Macy’s, Inc. introduces 2024 guidance in a transition and investment year that reflects continued operational progress and investments in key customer-focused initiatives in support of its new strategy. The full outlook for 2024, presented on a 52-week basis, can be found in the presentation posted to www.macysinc.com/investors.
Fiscal 2024
Net sales
$22.2 billion to $22.9 billion
Comparable owned plus licensed plus marketplace sales change (52 week basis for both 2024 and 2023)
Down ~1.5% to up 1.5% versus 2023
Adjusted diluted earnings per share
$2.45 to $2.85
Adjusted diluted EPS excludes any potential impact from the proposed credit card late fee ruling. Additionally, the impact of any potential future share repurchases associated with the company’s current share repurchase authorization is not considered.
The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned plus licensed plus marketplace sales change and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. See Important Information Regarding Financial Measures.
Conference Call and Webcasts
A webcast of Macy's, Inc.’s call with analysts and investors to report its fourth quarter and full-year 2023 sales and earnings will be held today (February 27, 2024) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com/investors. To participate in the call, analysts and investors may call 1-877-407-0832. A replay of the conference call will be available on the company’s website or by calling 1-877-660-6853, using passcode 13744146 about three hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom.
Important Information Regarding Financial Measures
Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is a trusted source for quality brands through our iconic nameplates – Macy’s, Bloomingdale’s and Bluemercury. Headquartered in New York City, our comprehensive digital and nationwide footprint empowers us to deliver a seamless shopping experience for our customers. For more information, visit macysinc.com.
Forward-Looking Statements
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including Macy’s ability to successfully implement A Bold New Chapter strategy, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, possible systems failures and/or security breaches, Macy’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather, inflation, and labor shortages, the amount and timing of future dividends and share repurchases, our ability to execute on our strategies or achieve expectations related to environmental, social, and governance matters, and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended January 28, 2023. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MACY’S, INC.
Consolidated Statements of Income (Loss) (Unaudited)
(All amounts in millions except percentages and per share figures)
14 Weeks Ended
February 3, 2024
13 Weeks Ended
January 28, 2023
$
% to Net sales
% to Total revenue
$
% to Net sales
% to Total revenue
Net sales
$
8,120
$
8,264
Other revenue (Note 1)
255
3.1
%
319
3.9
%
Total revenue
8,375
8,583
Cost of sales
(5,076
)
(62.5
%)
(5,450
)
(65.9
%)
Selling, general and administrative expenses
(2,405
)
(28.7
%)
(2,456
)
(28.6
%)
Gains on sale of real estate
41
0.5
%
15
0.2
%
Impairment, restructuring and other costs
(1,007
)
(12.0
%)
(16
)
(0.2
)
Operating income (loss)
(72
)
(0.9
%)
676
7.9
%
Benefit plan income (expense), net
1
(1
)
Settlement charges
(5
)
(7
)
Interest expense, net
(27
)
(31
)
Income (loss) before income taxes
(103
)
637
Federal, state and local income tax benefit (expense) (Note 2)
32
(129
)
Net income (loss)
$
(71
)
$
508
Basic earnings (loss) per share
$
(0.26
)
$
1.87
Diluted earnings (loss) per share
$
(0.26
)
$
1.83
Average common shares:
Basic
275.0
272.2
Diluted
275.0
278.5
End of period common shares outstanding
274.2
271.3
Supplemental Financial Measures:
Gross Margin (Note 3)
$
3,044
37.5
%
$
2,814
34.1
%
Depreciation and amortization expense
$
232
$
219
MACY’S, INC.
Consolidated Statements of Income (Unaudited)
(All amounts in millions except percentages and per share figures)
53 Weeks Ended
February 3, 2024
52 Weeks Ended
January 28, 2023
$
% to Net sales
% to Total revenue
$
% to Net sales
% to Total revenue
Net sales
$
23,092
$
24,442
Other revenue (Note 1)
774
3.4
%
1,007
4.1
%
Total revenue
23,866
25,449
Cost of sales
(14,143
)
(61.2
%)
(15,306
)
(62.6
%)
Selling, general and administrative expenses
(8,375
)
(35.1
%)
(8,461
)
(33.2
%)
Gains on sale of real estate
61
0.3
%
89
0.3
%
Impairment, restructuring and other costs
(1,027
)
(4.3
%)
(41
)
(0.2
%)
Operating income
382
1.6
%
1,730
6.8
%
Benefit plan income, net
11
20
Settlement charges
(134
)
(39
)
Interest expense, net
(135
)
(162
)
Losses on early retirement of debt
—
(31
)
Income before income taxes
124
1,518
Federal, state and local income tax expense (Note 2)
(19
)
(341
)
Net income
$
105
$
1,177
Basic earnings per share
$
0.38
$
4.28
Diluted earnings per share
$
0.38
$
4.19
Average common shares:
Basic
274.2
274.7
Diluted
278.2
281.1
End of period common shares outstanding
274.2
271.3
Supplemental Financial Measures:
Gross Margin (Note 3)
$
8,949
38.8
%
$
9,136
37.4
%
Depreciation and amortization expense
$
897
$
857
MACY’S, INC.
Consolidated Balance Sheets (Unaudited)
(millions)
February 3, 2024
January 28, 2023
ASSETS:
Current Assets:
Cash and cash equivalents
$
1,034
$
862
Receivables
293
300
Merchandise inventories
4,361
4,267
Prepaid expenses and other current assets
401
424
Total Current Assets
6,089
5,853
Property and Equipment – net
5,308
5,913
Right of Use Assets
2,305
2,683
Goodwill
828
828
Other Intangible Assets – net
430
432
Other Assets
1,286
1,157
Total Assets
$
16,246
$
16,866
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Merchandise accounts payable
$
1,913
$
2,053
Accounts payable and accrued liabilities
2,434
2,750
Income taxes
83
58
Total Current Liabilities
4,430
4,861
Long-Term Debt
2,998
2,996
Long-Term Lease Liabilities
2,986
2,963
Deferred Income Taxes
745
947
Other Liabilities
950
1,017
Shareholders' Equity
4,137
4,082
Total Liabilities and Shareholders’ Equity
$
16,246
$
16,866
MACY’S, INC.
Consolidated Statements of Cash Flows (Unaudited) (Note 4)
(millions)
53 Weeks Ended
February 3, 2024
52 Weeks Ended
January 28, 2023
Cash flows from operating activities:
Net income
$
105
$
1,177
Adjustments to reconcile net income to net cash provided by operating
activities:
Impairment, restructuring and other costs
1,027
41
Settlement charges
134
39
Depreciation and amortization
897
857
Benefit plans
4
17
Stock-based compensation expense
47
54
Gains on sale of real estate
(61
)
(89
)
Deferred income taxes
(244
)
(38
)
Amortization of financing costs and premium on acquired debt
10
11
Changes in assets and liabilities:
(Increase) decrease in receivables
7
(3
)
(Increase) decrease in merchandise inventories
(99
)
116
(Increase) decrease in prepaid expenses and other current assets
18
(66
)
Decrease in merchandise accounts payable
(113
)
(129
)
Decrease in accounts payable and accrued liabilities
(347
)
(174
)
Increase (decrease) in current income taxes
24
(75
)
Change in other assets and liabilities
(104
)
(123
)
Net cash provided by operating activities
1,305
1,615
Cash flows from investing activities:
Purchase of property and equipment
(631
)
(888
)
Capitalized software
(362
)
(407
)
Disposition of property and equipment
86
137
Other, net
(6
)
(11
)
Net cash used by investing activities
(913
)
(1,169
)
Cash flows from financing activities:
Debt issued
961
2,809
Debt issuance costs
(1
)
(21
)
Debt repaid
(963
)
(3,100
)
Debt repurchase premium and expenses
—
(29
)
Dividends paid
(181
)
(173
)
Increase (decrease) in outstanding checks
2
(181
)
Acquisition of treasury stock
(38
)
(601
)
Net cash used by financing activities
(220
)
(1,296
)
Net increase (decrease) in cash, cash equivalents and restricted cash
172
(850
)
Cash, cash equivalents and restricted cash beginning of period
865
1,715
Cash, cash equivalents and restricted cash end of period
$
1,037
$
865
MACY’S, INC.
Consolidated Financial Statements (Unaudited)
Notes:
(1)
Other Revenue is inclusive of the following amounts due to the reclassification of Macy’s Media Network net revenue from SG&A to Other Revenue. Reclassifications were made to the prior year’s amounts to conform with the classifications of such amounts in the most recent year. All amounts in millions except percentages.
14 Weeks Ended
February 3, 2024
13 Weeks Ended
January 28, 2023
$
% to Net sales
$
% to Net sales
Credit card revenues, net
$
195
2.4
%
$
262
3.2
%
Macy's Media Network revenue, net
60
0.7
%
57
0.7
%
Other Revenue
$
255
3.1
%
$
319
3.9
%
Net Sales
$
8,120
$
8,264
53 Weeks Ended
February 3, 2024
52 Weeks Ended
January 28, 2023
$
% to Net sales
$
% to Net sales
Credit card revenues, net
$
619
2.7
%
$
863
3.5
%
Macy's Media Network revenue, net
155
0.7
%
144
0.6
%
Other Revenue
$
774
3.4
%
$
1,007
4.1
%
Net Sales
$
23,092
$
24,442
(2)
Income tax benefit of $32 million and expense of $19 million, or 31.1% and 15.3% of pretax income, for the 14 and 53 weeks ended February 3, 2024, respectively, reflect a different effective tax rate as compared to the company’s federal income tax statutory rate of 21% driven primarily by the reduced pretax income as a result of the impairment charges and state and local taxes.
Income tax expense of $129 million and $341 million, or 20.3% and 22.5% of pretax income, for the 13 and 52 weeks ended January 28, 2023, reflected a different effective tax rate as compared to the company's federal income tax statutory rate of 21% driven primarily by the impact of state and local taxes and the benefit of state tax settlements.
(3)
Gross margin is defined as net sales less cost of sales.
(4)
Restricted cash of $3 million has been included with cash and cash equivalents for the 53 weeks ended February 3, 2024 and 52 weeks ended January 28, 2023.
MACY’S, INC.
Important Information Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures provide users of the company's financial information with additional useful information in evaluating operating performance. Management believes that providing supplemental changes in comparable sales on an owned-plus-licensed basis, which includes adjusting for the impact of comparable sales of departments licensed to third parties, assists in evaluating the company's ability to generate sales growth, whether through owned businesses or departments licensed to third parties, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income and diluted earnings per share that are not associated with the company’s core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company's ability to generate earnings and to more readily compare these metrics between past and future periods.
The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned plus licensed sales change and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
MACY’S, INC.
Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages and per share figures)
Changes in Comparable Sales
14 Weeks Ended February 3, 2024 vs.
13 Weeks Ended January 28, 2023
Macy’s, Inc.
Macy’s
Bloomingdale’s
Decrease in comparable sales on an owned basis (Note 5)
(5.4
%)
(6.0
%)
(1.5
%)
Comparable sales impact of departments licensed to third parties (Note 6)
1.2
%
1.3
%
(0.1
%)
Decrease in comparable sales on an owned plus licensed basis
(4.2
%)
(4.7
%)
(1.6
%)
53 Weeks Ended February 3, 2024 vs.
52 Weeks Ended January 28, 2023
Macy's, Inc.
Macy's
Bloomingdale's
Decrease in comparable sales on an owned basis (Note 5)
(6.9
%)
(7.6
%)
(2.7
%)
Comparable sales impact of departments licensed to third parties (Note 6)
0.9
%
1.0
%
(0.4
%)
Decrease in comparable sales on an owned plus licensed basis
(6.0
%)
(6.6
%)
(3.1
%)
Notes:
(5)
Represents the period-to-period percentage change in net sales from stores in operation for one full fiscal year during the 14 and 53 weeks ended February 3, 2024, and the 13 and 52 weeks ended January 28, 2023, adjusting for the 53rd week in fiscal 2023. Such calculation includes all digital sales and excludes commissions from departments licensed to third parties. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. Definitions and calculations of comparable sales may differ among companies in the retail industry.
(6)
Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales, including Marketplace sales, adjusting for the 53rd week in fiscal 2023, in the calculation of comparable sales. Macy’s and Bloomingdale’s license third parties to operate certain departments in its stores and online and receive commissions from these third parties based on a percentage of their net sales, while Bluemercury does not participate in licensed or Marketplace businesses. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties and Marketplace) in its net sales. The company does not, however, include any amounts in respect of licensed department or Marketplace sales (or any commissions earned on such sales) in its comparable sales in accordance with GAAP (i.e., on an owned basis). The amounts of commissions earned on sales of departments licensed to third parties and from the digital Marketplace are not material to its net sales for the periods presented.
Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:
EBITDA and Adjusted EBITDA
14 Weeks Ended
February 3, 2024
13 Weeks Ended
January 28, 2023
Net income (loss)
$
(71
)
$
508
Interest expense, net
27
31
Federal, state and local income tax expense (benefit)
(32
)
129
Depreciation and amortization
232
219
EBITDA
156
887
Impairment, restructuring and other costs
1,007
16
Settlement charges
5
7
Adjusted EBITDA
$
1,168
$
910
53 Weeks Ended
February 3, 2024
52 Weeks Ended
January 28, 2023
Net income
$
105
$
1,177
Interest expense, net
135
162
Losses on early retirement of debt
—
31
Federal, state and local income tax expense
19
341
Depreciation and amortization
897
857
EBITDA
1,156
2,568
Impairment, restructuring and other costs
1,027
41
Settlement charges
134
39
Adjusted EBITDA
$
2,317
$
2,648
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share
14 Weeks Ended
February 3, 2024
13 Weeks Ended
January 28, 2023
Net
Income
(Loss)
Diluted
Earnings (Loss)
Per Share
Net
Income
Diluted
Earnings
Per Share
As reported
$
(71
)
$
(0.26
)
$
508
$
1.83
Impairment, restructuring and other costs
1,007
3.60
16
0.06
Settlement charges
5
0.02
7
0.02
Income tax impact of certain items identified above
(256
)
(0.91
)
(7
)
(0.03
)
As adjusted to exclude certain items above
$
685
$
2.45
$
524
$
1.88
53 Weeks Ended
February 3, 2024
52 Weeks Ended
January 28, 2023
Net
Income
Diluted
Earnings
Per Share
Net
Income
Diluted
Earnings
Per Share
As reported
$
105
$
0.38
$
1,177
$
4.19
Impairment, restructuring and other costs
1,027
3.69
41
0.15
Settlement charges
134
0.48
39
0.14
Losses on early retirement of debt
—
—
31
0.11
Income tax impact of certain items identified above
(293
)
(1.05
)
(29
)
(0.11
)
As adjusted to exclude certain items above
$
973
$
3.50
$
1,259
$
4.48
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227850623/en/
Media – Chris Grams communications@macys.com Investors – Pamela Quintiliano investors@macys.com
1 Year Macys Chart |
1 Month Macys Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions