Macy’s, Inc. Reports First Quarter 2025 Results
Net sales exceeded guidance; Reaffirmed annual net sales guidance
GAAP diluted EPS of
Macy’s Reimagine 125 stores outperformed Macy’s fleet
Bloomingdale’s and Bluemercury delivered consistent positive comps
First Quarter Highlights
-
Macy’s, Inc. achieved net sales of
$4.6 billion -
Macy’s, Inc. comparable sales were down
2.0% on an owned basis and down1.2% on an owned-plus-licensed-plus-marketplace basis, surpassing the company’s prior guidance range, benefiting from better than expected performance across all nameplates. -
The company reported GAAP diluted earnings per share of
$0.13 $0.16 -
Bloomingdale’s reported comparable sales growth on an owned and owned-plus-licensed-plus-marketplace basis of
3.0% and3.8% , respectively. -
Bluemercury reported comparable sales growth of
1.5% , its 17th consecutive quarter of comparable sales growth. -
The company returned approximately
$152 million $51 million $101 million
“We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy’s, Inc. to sustainable profitable growth.”
First Quarter Results (comparisons are to the first quarter of 2024)
Macy’s, Inc. net sales decreased
Macy’s, Inc. go-forward business2 comparable sales were down
-
Macy’s net sales were down
6.5% 1 inclusive of store closures, with comparable sales down2.9% on an owned basis and down2.1% on an owned-plus-licensed-plus-marketplace basis. Macy’s go-forward business2 comparable sales were down2.7% on an owned basis and down1.9% on an owned-plus-licensed-plus-marketplace basis.-
Reimagine 125 locations comparable sales were down
1.3% on an owned basis and down0.8% on an owned-plus-licensed basis.
-
Reimagine 125 locations comparable sales were down
-
Bloomingdale’s net sales were up
2.6% , with comparable sales up3.0% on an owned basis and up3.8% on an owned-plus-licensed-plus-marketplace basis. -
Bluemercury net sales were up
0.8% and comparable sales were up1.5% on an owned basis.
Other revenue of
-
Credit card net revenues increased
$37 million 31.6% , to$154 million -
Macy’s Media Network net revenue rose
$3 million 8.1% , to$40 million
Gross margin rate of
Selling, general and administrative (“SG&A”) expense of
Asset sale gains of
GAAP net income was
GAAP and Adjusted diluted earnings per share (“EPS”) were
Adjusted earnings before interest, taxes, and depreciation and amortization (“EBITDA”) was
Balance Sheet and Liquidity
Merchandise inventories decreased
The company ended the first quarter of 2025 with cash and cash equivalents of
As of the end of first quarter of 2025, total debt of
Shareholder Returns
Through its quarterly dividend, the company returned
During the first quarter of 2025, the company repurchased 8.7 million of its shares for a total of
1: Reflects the impact of fiscal 2024 store closures, primarily Macy’s nameplate locations, which contributed approximately |
2: Inclusive of go-forward locations and digital. For Macy’s, Inc. this reflects go-forward locations and digital across all three nameplates. |
3: Defined as Adjusted EBITDA excluding asset sale gains. |
2025 Guidance
The company has revised its annual outlook based on current information to account for several factors including: initial and current tariffs; some moderation in consumer discretionary spending; and a heightened competitive promotional landscape. Despite these challenges, the company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to these changes.
The full outlook for 2025, including second quarter of 2025, can be found in the presentation posted to www.macysinc.com/investors. For Macy’s, Inc. the company expects:
|
Guidance as of May 28, 2025 |
Guidance as of March 6, 2025 |
Net sales* |
Unchanged |
|
Comparable owned-plus-licensed-plus-marketplace sales change |
Unchanged |
Down ~ |
Go-forward business comparable owned-plus-licensed-plus-marketplace sales change |
Unchanged |
Down ~ |
Adjusted EBITDA as a percent of total revenue |
|
|
Core Adjusted EBITDA as a percent of total revenue |
|
|
Adjusted diluted earnings per share** |
|
|
*: Reflects the impact of fiscal 2024 store closures, primarily Macy’s nameplate locations, which contributed approximately **: The impact of any potential future share repurchases associated with the company’s current share repurchase authorization is not considered within guidance. |
||
The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned-plus-licensed-plus-marketplace sales change, Adjusted EBITDA as a percent of total revenue, Core Adjusted EBITDA as a percent of total revenue and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. See Important Information Regarding Non-GAAP Financial Measures.
Conference Call and Webcasts
A webcast of Macy's, Inc.’s call with analysts and investors to report its first quarter of 2025 sales and earnings will be held today (May 28, 2025) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call 1-877-407-0832. A replay of the conference call will be available on the company’s website or by calling 1-877-660-6853, using passcode 13753217, about two hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/newsroom.
Important Information Regarding Financial Measures
Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is a trusted source for quality brands through our iconic nameplates – Macy’s, Bloomingdale’s and Bluemercury. Headquartered in
Forward-Looking Statements
All statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s, Inc. management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including Macy’s, Inc.’s ability to successfully implement its Bold New Chapter strategy, including the ability to realize the anticipated benefits associated with the strategy, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, conditions to, or changes in the timing of proposed real estate and other transactions, declines in credit card revenues, possible systems failures and/or security breaches, Macy’s, Inc.’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, regional political and economic conditions, the effect of trade policies and tariffs, including changes thereto, the effect of weather, inflation, inventory shortage, and labor shortages, the potential for the incurrence of charges in connection with the impairment of tangible and intangible assets, including goodwill, the amount and timing of future dividends and share repurchases, our ability to execute on our strategies and achieve expectations related to environmental, social, and governance matters, and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended February 1, 2025. Macy’s, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MACY’S, INC.
Consolidated Statements of Income (Unaudited) (Note 1) (All amounts in millions except percentages and per share figures) |
|||||||||||||||||||
|
13 Weeks Ended
|
|
13 Weeks Ended
|
||||||||||||||||
|
$ |
|
% to
|
|
% to
|
|
$ |
|
% to
|
|
% to
|
||||||||
Net sales |
$ |
4,599 |
|
|
|
|
|
|
$ |
4,846 |
|
|
|
|
|
||||
Other revenue (Note 2) |
|
194 |
|
|
4.2 |
% |
|
|
|
|
154 |
|
|
3.2 |
% |
|
|
||
Total revenue |
|
4,793 |
|
|
|
|
|
|
|
5,000 |
|
|
|
|
|
||||
Cost of sales |
|
(2,795 |
) |
|
(60.8 |
%) |
|
|
|
|
(2,946 |
) |
|
(60.8 |
%) |
|
|
||
Selling, general and administrative expenses |
|
(1,913 |
) |
|
|
|
(39.9 |
%) |
|
|
(1,911 |
) |
|
|
|
(38.2 |
%) |
||
Gains on sale of real estate |
|
16 |
|
|
|
|
0.3 |
% |
|
|
1 |
|
|
|
|
— |
% |
||
Impairment, restructuring and other costs |
|
(7 |
) |
|
|
|
(0.1 |
%) |
|
|
(19 |
) |
|
|
|
(0.4 |
%) |
||
Operating income |
|
94 |
|
|
|
|
2.0 |
% |
|
|
125 |
|
|
|
|
2.5 |
% |
||
Benefit plan income, net |
|
4 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
||||
Interest expense, net |
|
(27 |
) |
|
|
|
|
|
|
(31 |
) |
|
|
|
|
||||
Loss on extinguishment of debt |
|
(3 |
) |
|
|
|
|
|
|
— |
|
|
|
|
|
||||
Income before income taxes |
|
68 |
|
|
|
|
|
|
|
98 |
|
|
|
|
|
||||
Federal, state and local income tax expense (Note 3) |
|
(30 |
) |
|
|
|
|
|
|
(36 |
) |
|
|
|
|
||||
Net income |
$ |
38 |
|
|
|
|
|
|
$ |
62 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.14 |
|
|
|
|
|
|
$ |
0.22 |
|
|
|
|
|
||||
Diluted earnings per share |
$ |
0.13 |
|
|
|
|
|
|
$ |
0.22 |
|
|
|
|
|
||||
Average common shares: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
277.6 |
|
|
|
|
|
|
|
276.1 |
|
|
|
|
|
||||
Diluted |
|
280.7 |
|
|
|
|
|
|
|
281.0 |
|
|
|
|
|
||||
End of period common shares outstanding |
|
271.5 |
|
|
|
|
|
|
|
276.4 |
|
|
|
|
|
||||
Supplemental Financial Measures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin (Notes 4) |
$ |
1,804 |
|
|
39.2 |
% |
|
|
|
$ |
1,900 |
|
|
39.2 |
% |
|
|
||
Depreciation and amortization expense |
$ |
219 |
|
|
|
|
|
|
$ |
216 |
|
|
|
|
|
||||
MACY’S, INC.
Consolidated Balance Sheets (Unaudited) (Note 1) (millions) |
||||||||
|
May 3,
|
|
February 1,
|
|
May 4,
|
|||
ASSETS: |
|
|
|
|
|
|||
Current Assets: |
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
932 |
|
$ |
1,306 |
|
$ |
876 |
Receivables |
|
241 |
|
|
303 |
|
|
257 |
Merchandise inventories |
|
4,663 |
|
|
4,468 |
|
|
4,687 |
Prepaid expenses and other current assets |
|
445 |
|
|
385 |
|
|
442 |
Income taxes receivable |
|
10 |
|
|
17 |
|
|
— |
Total Current Assets |
|
6,291 |
|
|
6,479 |
|
|
6,262 |
Property and Equipment – net |
|
4,964 |
|
|
5,070 |
|
|
5,295 |
Right of Use Assets |
|
2,226 |
|
|
2,243 |
|
|
2,358 |
Goodwill |
|
828 |
|
|
828 |
|
|
828 |
Other Intangible Assets – net |
|
424 |
|
|
425 |
|
|
429 |
Other Assets |
|
1,356 |
|
|
1,357 |
|
|
1,277 |
Total Assets |
$ |
16,089 |
|
$ |
16,402 |
|
$ |
16,449 |
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|||
Current Liabilities: |
|
|
|
|
|
|||
Short-term debt |
$ |
6 |
|
$ |
6 |
|
$ |
— |
Merchandise accounts payable |
|
2,133 |
|
|
1,893 |
|
|
2,347 |
Accounts payable and accrued liabilities |
|
2,221 |
|
|
2,625 |
|
|
2,226 |
Income taxes payable |
|
27 |
|
|
— |
|
|
80 |
Total Current Liabilities |
|
4,387 |
|
|
4,524 |
|
|
4,653 |
Long-Term Debt |
|
2,774 |
|
|
2,773 |
|
|
2,998 |
Long-Term Lease Liabilities |
|
2,884 |
|
|
2,927 |
|
|
3,034 |
Deferred Income Taxes |
|
721 |
|
|
724 |
|
|
748 |
Other Liabilities |
|
872 |
|
|
902 |
|
|
932 |
Shareholders' Equity |
|
4,451 |
|
|
4,552 |
|
|
4,084 |
Total Liabilities and Shareholders’ Equity |
$ |
16,089 |
|
$ |
16,402 |
|
$ |
16,449 |
MACY’S, INC.
Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5) (millions) |
|||||||
|
13 Weeks Ended
|
|
13 Weeks Ended
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
38 |
|
|
$ |
62 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Impairment, restructuring and other costs |
|
7 |
|
|
|
19 |
|
Depreciation and amortization |
|
219 |
|
|
|
216 |
|
Benefit plans |
|
1 |
|
|
|
1 |
|
Stock-based compensation expense |
|
13 |
|
|
|
13 |
|
Gains on sale of real estate |
|
(16 |
) |
|
|
(1 |
) |
Amortization of financing costs and premium on acquired debt |
|
2 |
|
|
|
3 |
|
Deferred income taxes |
|
(2 |
) |
|
|
(10 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Decrease in receivables |
|
62 |
|
|
|
35 |
|
Increase in merchandise inventories |
|
(198 |
) |
|
|
(273 |
) |
Increase in prepaid expenses and other current assets |
|
(68 |
) |
|
|
(49 |
) |
Increase in merchandise accounts payable |
|
242 |
|
|
|
401 |
|
Decrease in accounts payable and accrued liabilities |
|
(344 |
) |
|
|
(289 |
) |
Increase in current income taxes |
|
25 |
|
|
|
34 |
|
Change in other assets and liabilities |
|
(45 |
) |
|
|
(33 |
) |
Net cash (used) provided by operating activities |
|
(64 |
) |
|
|
129 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(100 |
) |
|
|
(154 |
) |
Capitalized software |
|
(77 |
) |
|
|
(75 |
) |
Proceeds from disposition of assets, net |
|
38 |
|
|
|
4 |
|
Other, net |
|
6 |
|
|
|
8 |
|
Net cash used by investing activities |
|
(133 |
) |
|
|
(217 |
) |
Cash flows from financing activities: |
|
|
|
||||
Debt issuance costs |
|
(6 |
) |
|
|
— |
|
Debt repaid |
|
(1 |
) |
|
|
(1 |
) |
Dividends paid |
|
(51 |
) |
|
|
(48 |
) |
Decrease in outstanding checks |
|
(23 |
) |
|
|
(21 |
) |
Acquisition of treasury stock |
|
(97 |
) |
|
|
— |
|
Net cash used by financing activities |
|
(178 |
) |
|
|
(70 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(375 |
) |
|
|
(158 |
) |
Cash, cash equivalents and restricted cash beginning of period |
|
1,310 |
|
|
|
1,037 |
|
Cash, cash equivalents and restricted cash end of period |
$ |
935 |
|
|
$ |
879 |
|
MACY’S, INC.
Consolidated Financial Statements (Unaudited) |
|||||||||||||
Notes: |
|||||||||||||
| (1) | As a result of the seasonal nature of the retail business, the results of operations for the 13 weeks ended May 3, 2025 and May 4, 2024 (which do not include the Christmas season) are not necessarily indicative of such results for the fiscal year. |
||||||||||||
| (2) | Other Revenue is inclusive of the following amounts. All amounts in millions except percentages. |
||||||||||||
|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
||||||||||
|
$ |
|
% to
|
|
$ |
|
% to
|
||||||
Credit card revenues, net |
$ |
154 |
|
3.3 |
% |
|
$ |
117 |
|
2.4 |
% |
||
Macy's Media Network revenue, net |
|
40 |
|
0.9 |
% |
|
|
37 |
|
0.8 |
% |
||
Other Revenue |
$ |
194 |
|
4.2 |
% |
|
$ |
154 |
|
3.2 |
% |
||
|
|
|
|
|
|
|
|
||||||
Net Sales |
$ |
4,599 |
|
|
|
$ |
4,846 |
|
|
||||
|
|
|
|
|
|
|
|
||||||
| (3) |
The income tax expense of |
||||||||||||
| (4) | Gross margin is defined as net sales less cost of sales. |
||||||||||||
(5) |
Restricted cash of |
||||||||||||
MACY’S, INC.
Important Information Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with
The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned-plus-licensed-plus-marketplace sales change, Adjusted EBITDA, Core Adjusted EBITDA and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties and marketplace sales are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
MACY’S, INC.
Important Information Regarding Non-GAAP Financial Measures (All amounts in millions except percentages and per share figures) |
|||||
Changes in Comparable Sales |
|||||
|
13 Weeks Ended May 3, 2025 |
||||
|
Macy's, Inc. |
|
Macy's |
||
Decrease in comparable sales on an owned basis (Note 6) |
(2.0 |
%) |
|
(2.9 |
%) |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
0.8 |
% |
|
0.8 |
% |
Decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis |
(1.2 |
%) |
|
(2.1 |
%) |
|
13 Weeks Ended May 3, 2025 |
||||||||||
|
Macy's, Inc. go-forward business |
|
Macy's go-forward business |
|
|
|
Bluemercury |
||||
Increase (decrease) in comparable sales on an owned basis (Note 6) |
(1.8 |
)% |
|
(2.7 |
)% |
|
3.0 |
% |
|
1.5 |
% |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
0.9 |
% |
|
0.8 |
% |
|
0.8 |
% |
|
— |
% |
Increase (decrease) in comparable sales on an owned-plus-licensed-plus-marketplace basis |
(0.9 |
%) |
|
(1.9 |
%) |
|
3.8 |
% |
|
1.5 |
% |
|
13 Weeks Ended May 3, 2025 |
|
|
Macy's Reimagine 125 locations |
|
Decrease in comparable sales on an owned basis (Note 6) |
(1.3 |
%) |
Impact of departments licensed to third parties (Note 7) |
0.5 |
% |
Decrease in comparable sales on an owned-plus-licensed basis |
(0.8 |
%) |
| Notes: | ||
|
||
| (6) | Represents the period-to-period percentage change in net sales from stores in operation for one full fiscal year during the 13 weeks ended May 3, 2025 and May 4, 2024. Such calculation includes all digital sales and excludes commissions from departments licensed to third parties and marketplace. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. Definitions and calculations of comparable sales may differ among companies in the retail industry.\ |
|
|
||
| (7) | Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales, including marketplace sales, in the calculation of comparable sales. Macy’s and Bloomingdale’s license third parties to operate certain departments in its stores and online and receive commissions from these third parties based on a percentage of their net sales, while Bluemercury does not participate in licensed or Marketplace businesses. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties and Marketplace) in its net sales. The company does not, however, include any amounts in respect of licensed department or Marketplace sales (or any commissions earned on such sales) in its comparable sales in accordance with GAAP (i.e., on an owned basis). The amounts of commissions earned on sales of departments licensed to third parties and from the digital Marketplace are not material to its net sales for the periods presented. |
|
Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:
- EBITDA, adjusted EBITDA and core adjusted EBITDA are reconciled to GAAP net income.
- Adjusted net income is reconciled to GAAP net income.
- Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per share.
EBITDA, Adjusted EBITDA and Core Adjusted EBITDA
|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
||||
Net income |
$ |
38 |
|
|
$ |
62 |
|
Interest expense, net |
|
27 |
|
|
|
31 |
|
Loss on extinguishment of debt |
|
3 |
|
|
|
— |
|
Federal, state and local income tax expense |
|
30 |
|
|
|
36 |
|
Depreciation and amortization |
|
219 |
|
|
|
216 |
|
EBITDA |
|
317 |
|
|
|
345 |
|
Impairment, restructuring and other costs |
|
7 |
|
|
|
19 |
|
Adjusted EBITDA |
|
324 |
|
|
|
364 |
|
Gains on sale of real estate |
|
(16 |
) |
|
|
(1 |
) |
Core Adjusted EBITDA |
$ |
308 |
|
|
$ |
363 |
|
Adjusted Net Income and Adjusted Diluted Earnings Per Share
|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
||||||||||||
|
Net Income |
|
Diluted Earnings Per Share |
|
Net Income |
|
Diluted Earnings Per Share |
||||||||
As reported |
$ |
38 |
|
|
$ |
0.13 |
|
|
$ |
62 |
|
|
$ |
0.22 |
|
Impairment, restructuring and other costs |
|
7 |
|
|
|
0.03 |
|
|
|
19 |
|
|
|
0.07 |
|
Loss on extinguishment of debt |
|
3 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Income tax impact of certain items identified above |
|
(2 |
) |
|
|
(0.01 |
) |
|
|
(4 |
) |
|
|
(0.02 |
) |
As adjusted to exclude certain items above |
$ |
46 |
|
|
$ |
0.16 |
|
|
$ |
77 |
|
|
$ |
0.27 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250528729092/en/
Media – Chris Grams
communications@macys.com
Investors – Pamela Quintiliano
investors@macys.com
Source: Macy’s, Inc.
