US retailer Macy's sales at $24.4 bn in FY22

The company achieved diluted earnings per share of $4.19 and adjusted diluted earnings per share of $4.48 in FY22, a decrease from $4.55 and $5.31, respectively, in FY21.

In FY22, selling, general, and administrative expense was $8.3 billion, a $270 million increase from FY21.

The company's customer count for the Macy’s brand totalled 42.7 million active customers, a 4 per cent decrease compared to the prior year, with Star Rewards programme members making up approximately 70 per cent of the total Macy's brand owned-plus-licensed sales, up approximately 1 percentage point versus the prior year. Additionally, 4.1 million active customers shopped the Bloomingdale’s brand, a 5 per cent increase compared to the prior year.

Macy's gross margin for FY22 was 37.4 per cent, down from 38.9 per cent in FY21. Delivery expense as a per cent of net sales decreased 30 basis points from FY21, primarily due to lower digital penetration.

The company's inventory turnover for FY22 decreased approximately 4 per cent versus FY21, but increased approximately 15 per cent over 2019. Inventory was down approximately 3 per cent and approximately 18 per cent versus FY21 and FY19, respectively.

In the fourth quarter (Q4) of FY22, the company posted diluted earnings per share of $1.83 and adjusted diluted earnings per share of $1.88. This compares to diluted earnings per share of $2.44 and adjusted diluted earnings per share of $2.45 in the fourth quarter of FY21, and $1.09 and $2.12, respectively, in the fourth quarter of FY19.

The net sales for Q4 FY22 were $8.3 billion, down 4.6 per cent versus Q4 FY21, but up 0.9 per cent versus the Q4 FY19. Digital sales decreased 9 per cent versus the fourth quarter of FY21. Comparable sales were down 3.3 per cent on an owned basis and down 2.7 per cent on an owned-plus-licensed basis versus the fourth quarter of FY21.

Bloomingdale’s comparable sales in Q4 FY22 were up 1.2 per cent on an owned basis. Beauty, women’s and men’s apparel in both contemporary and dressy performed well partially offset by weakness in handbags and textiles.

Gross margin for the quarter was 34.1 per cent, down from 36.5 per cent in the fourth quarter of FY21.

For fiscal 2023, Macy’s is projecting net sales of $23.7 billion to $24.2 billion, which is a decrease of 3 per cent to 1 per cent compared to FY22. The comparable owned plus licensed sales change is expected to be down 4 per cent to 2 per cent versus FY22 on a 52-week basis. The adjusted diluted earnings per share is expected to be between $3.67 and $4.11.

“We successfully navigated 2022 from a position of financial and operational strength. Despite an increasingly volatile macroeconomic climate, through the ongoing execution of our Polaris strategy, we remained agile, pivoted to meet customer demand and elevated our approach to inventory management,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “In the fourth quarter, we benefited from our disciplined inventory approach and compelling gift-giving strategy, which allowed us to provide fresh fashion and style at great values for all our customers.”

Fibre2Fashion News Desk (DP)