Comparable sales dipped by 6.9 per cent on an owned basis and 6 per cent on an owned-plus-licensed basis. The Macy’s nameplate attracted 41.2 million active customers, while Bloomingdale’s drew in 4 million active shoppers. Other revenue took a hit, falling to $774 million, which is $233 million less than the previous year and making up 3.4 per cent of net sales, the company said in a press release.

However, gross margin improved to 38.8 per cent, up from 37.4 per cent in 2022. Inventory levels were approximately 2 per cent higher than in FY22 but showed a notable decrease of around 16 per cent compared to FY19.

Operating expenses saw a slight reduction, with selling, general, and administrative costs totalling $8.4 billion, down $86 million from 2022, although as a percentage of total revenue, these expenses increased to 35.1 per cent.

The fourth quarter of fiscal 2023 (Q4 FY23) saw net sales of $8.1 billion, a 1.7 per cent decrease from the same period in the previous year. Digital and brick-and-mortar sales dynamics mirrored the annual trend, with digital sales down by 4 per cent and physical store sales remaining stable.

Comparable sales experienced a 5.4 per cent decrease on an owned basis and a 4.2 per cent decrease on an owned-plus-licensed basis, with Bloomingdale's facing a smaller decline. Other revenue for the quarter stood at $255 million.

The gross margin for the quarter improved significantly to 37.5 per cent from 34.1 per cent in the previous year’s quarter. Selling, general, and administrative expenses decreased to $2.4 billion, although as a percentage of total revenue, there was a slight increase due to lower overall revenue.

“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. “Our portfolio of iconic and globally recognised 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 that is expected to generate meaningful value for our shareholders in the years ahead.”

Fibre2Fashion News Desk (DP)