The company reported diluted earnings per share of $0.15 and adjusted diluted earnings per share of $0.21. This marks a decrease from the third quarter of FY22, where the figures were $0.39 and $0.52, respectively.

Comparable sales also saw a decline, down 7 per cent on an owned basis and 6.3 per cent on an owned-plus-licensed basis, the company said in a media release.

Breaking down the company's performance by nameplate, Macy's comparable sales decreased by 7.6 per cent on an owned basis and 6.7 per cent on an owned-plus-licensed basis. Despite this, the Macy's brand maintained a strong customer base, with approximately 41.3 million active customers shopping on a trailing twelve-month basis. The Star Rewards programme continued to play a significant role, accounting for approximately 72 per cent of Macy's brand comparable owned-plus-licensed sales.

Bloomingdale's, another nameplate under Macy's, also experienced a decrease in sales, with comparable sales on an owned basis down 3.2 per cent and on an owned-plus-licensed basis down 4.4 per cent. About 4 million active customers shopped at Bloomingdale’s, with strengths observed in women’s contemporary apparel, shoes, and Bloomingdale’s outlet locations, while other segments like men’s and designer handbags were weaker.

Other revenue for the company stood at $178 million, a significant $59 million drop from the previous year, representing 3.7 per cent of net sales compared to 4.5 per cent in the prior year.

Inventory turnover on a trailing twelve-month basis was up by 1 per cent compared to Q3 FY22. Merchandise inventories decreased by 6 per cent year-over-year.

In terms of profitability, Macy's reported an improvement in gross margin rate for the quarter, at 40.3 per cent, up from 38.7 per cent in the third quarter of FY22.

“We delivered better-than-expected top and bottom line third quarter results and are entering the holiday period in a healthy inventory position. Our portfolio of nameplates are leading gift-giving destinations across the value spectrum offering exclusive products. We have refined our gift assortment, simplified our promotions, and improved our shopping experience,” said Jeff Gennette, chairman and chief executive officer of Macy’s. "Looking forward we have strong continuity with Tony Spring transitioning to CEO in February, and I am confident he and our leadership team will guide Macy’s. to sustainable long-term profitable sales growth in the future.”

Fibre2Fashion News Desk (DP)