Macy’s, Inc, a renowned American department store chain, has reported net sales of $4.9 billion in the second quarter of fiscal 2024 (Q2 FY24), representing a decrease of 3.8 per cent compared to Q2 FY23. Despite the sales decline, Macy’s reported diluted earnings per share (EPS) of $0.53 for Q2 FY24, a significant improvement from a diluted loss per share of $0.08 in Q2 FY23. Adjusted diluted EPS also increased to $0.53, up from $0.26 in the same period last year.

The company’s gross margin rate improved by 240 basis points to 40.5 per cent, indicating better profitability despite the sales challenges. Additionally, merchandise inventories saw an increase of 6.0 per cent, Macy’s said in a press release.

Breaking down the performance by nameplates, Macy’s net sales declined by 4.4 per cent. Comparable sales for Macy’s were down 4.5 per cent on an owned basis and 3.6 per cent on an owned-plus-licensed-plus-marketplace basis. The go-forward business, inclusive of Macy’s core locations and digital platforms, saw comparable sales fall by 4.3 per cent on an owned basis and 3.3 per cent on an owned-plus-licensed-plus-marketplace basis. Non-go-forward locations experienced a steeper decline, with comparable sales down 6.5 per cent on both owned and owned-plus-licensed bases.

Meanwhile, Bloomingdale’s showed resilience with a slight net sales decline of just 0.2 per cent. Comparable sales at Bloomingdale’s were down 1.1 per cent on an owned basis and 1.4 per cent on an owned-plus-licensed-plus-marketplace basis.

Macy’s reported other revenue of $159 million in Q2 FY24, an increase of $9 million from the previous year. This other revenue represented 3.2 per cent of net sales, marking an increase of 30 basis points. Selling, general, and administrative expenses amounted to $2 billion, which was a slight decrease of $7 million compared to Q2 FY23.

“During the second quarter, we delivered strong earnings performance in a challenging consumer environment,” said Tony Spring, chairman and chief executive officer of Macy’s. “Our colleagues executed with discipline, supporting gross margin expansion and effective expense control throughout the organisation. We are seeing signs of our strategy taking root, including two consecutive quarters of positive comparable sales in Macy’s First 50 locations. We are encouraged by the early traction of our Bold New Chapter and remain committed to returning Macy’s to sustainable profitable growth.”

Fibre2Fashion News Desk (DP)