American retailer Macy's sales at $4.8 bn in Q1 FY24

Comparable sales were down 1.2 per cent on an owned basis and 0.3 per cent on an owned-plus-licensed-plus-marketplace basis. However, Macy’s go-forward business, which includes digital sales, saw a 0.9 per cent decrease on an owned basis but a slight increase of 0.1 per cent on an owned-plus-licensed-plus-marketplace basis, the company said in a press release.

Other revenue for the quarter was $154 million, a decrease of $37 million from the same period last year. This accounted for 3.2 per cent of net sales, a decline of 60 basis points. Meanwhile, merchandise inventories rose by 1.7 per cent compared to the first quarter of FY23. The gross margin rate for the quarter was 39.2 per cent, down from 40.0 per cent in Q1 FY23. The company also reported selling, general and administrative expenses of $1.9 billion, a decrease of $39 million from the previous year.

Among the company’s nameplates, Macy’s saw a decline in comparable sales, with a 1.6 per cent drop on an owned basis and a 0.4 per cent decrease on an owned-plus-licensed-plus-marketplace basis. In contrast, Bloomingdale’s reported positive results, with comparable sales increasing by 0.8 per cent on an owned basis and 0.3 per cent on an owned-plus-licensed-plus-marketplace basis.

“We are encouraged by our customers’ response to our Bold New Chapter strategy resulting in sales near the high end of our outlook. Our teams executed with discipline and efficiency, which contributed to first quarter earnings that exceeded our expectations,” said Tony Spring, chairman and chief executive officer of Macy’s. “At the Macy’s nameplate, go-forward business performance was led by our first 50 locations, which achieved comparable sales growth year over year and are a leading indicator for our go-forward fleet.”

Fibre2Fashion News Desk (DP)