Macy’s, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results
Highlights
-
Achieved fourth quarter GAAP diluted earnings per share of
; Adjusted diluted earnings per share of$1.21 exceeded the company’s prior guidance range.$1.80 -
Macy’s, Inc. reported fourth quarter comparable sales down
1.1% on an owned basis; achieved its best owned-plus-licensed-plus-marketplace comparable sales since the first quarter of 2022, up0.2% . -
Macy’s First 50 locations delivered fourth consecutive quarter of comparable sales growth, up
0.8% on an owned basis and up1.2% on an owned-plus-licensed basis. -
Bloomingdale’s reported owned comparable sales growth of
4.8% and its highest fourth quarter owned-plus-licensed-plus-marketplace comparable sales growth of6.5% . -
Bluemercury reported 16th consecutive quarter of comparable sales growth, up
6.2% . -
Ended the year with
of cash on the balance sheet, up$1.3 billion from last year and generated nearly$272 million of operating cash flow and$1.3 billion of free cash flow.$679 million -
Announced intent to resume share buybacks under the remaining
share repurchase authorization, market conditions permitting.$1.4 billion
“As we close out the first year of the Bold New Chapter strategy, investments in the customer experience enabled us to achieve our highest comparable sales of the year, our best performance in 11 quarters,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “At Macy’s, our First 50 locations delivered four quarters of increased sales, while our luxury nameplates, Bloomingdale’s and Bluemercury, achieved accelerated annual sales growth. As we enter the second year of our strategy, we plan to scale initiatives that are resonating with our customers to drive long-term profitable growth and further unlock shareholder value.”
Adrian Mitchell, Macy’s, Inc. chief operating officer and chief financial officer added, “Building on our momentum, we continue to elevate the customer experience, deliver operational excellence and make prudent capital investments. We remain committed to generating healthy free cash flow and returning capital to shareholders through share buybacks and predictable quarterly dividends.”
Fourth Quarter 2024 Results1 (comparisons are to the fourth quarter 2023)
Macy’s, Inc. net sales decreased
Macy’s, Inc. go-forward business2 comparable sales were down
-
Macy’s net sales were down
5.3% , with comparable sales down1.9% on an owned basis and down0.9% on an owned-plus-licensed-plus-marketplace basis. Macy’s go-forward business2 comparable sales were down1.6% on an owned basis and down0.5% on an owned-plus-licensed-plus-marketplace basis.-
First 50 locations comparable sales were up
0.8% on an owned basis and up1.2% on an owned-plus-licensed basis.
-
First 50 locations comparable sales were up
-
Bloomingdale’s net sales were up
2.0% , with comparable sales up4.8% on an owned basis and up6.5% on an owned-plus-licensed-plus-marketplace basis. -
Bluemercury net sales were up
2.4% and comparable sales were up6.2% on an owned basis.
Other revenue of
-
Credit card revenues, net decreased
, or$20 million 10.3% , to , primarily due to lower year-over-year profit share, inclusive of higher net credit losses.$175 million -
Macy’s Media Network revenue, net rose
, or$4 million 6.7% , to , reflecting continued growth in number of advertisers and campaign counts.$64 million
Gross margin rate3 of
Selling, general and administrative (“SG&A”) expense of
Asset sale gains of
GAAP diluted earnings per share (“EPS”) was
Fiscal Year 2024 Results1 (comparisons are to fiscal year 2023)
Macy’s, Inc. net sales decreased
Macy’s, Inc. go-forward business2 comparable sales were down
-
Macy’s net sales were down
4.2% , with comparable sales down2.6% on an owned basis and down1.6% on an owned-plus-licensed-plus-marketplace basis. Macy’s go-forward business2 comparable sales were down2.4% on an owned basis and down1.3% on an owned-plus-licensed-plus-marketplace basis.-
First 50 locations comparable sales were up
1.6% on an owned basis and up1.8% on an owned-plus-licensed basis.
-
First 50 locations comparable sales were up
-
Bloomingdale’s net sales were up
1.0% , with comparable sales up1.7% on an owned basis and up2.5% on an owned-plus-licensed-plus-marketplace basis. -
Bluemercury net sales were up
2.8% and comparable sales were up4.0% on an owned basis.
Other revenue of
-
Credit card revenues, net decreased
, or$82 million 13.2% , to , primarily driven by higher net credit losses year-over-year.$537 million -
Macy’s Media Network revenue, net rose
, or$21 million 13.5% , to , reflecting growth in number of advertisers and campaign counts year-over-year.$176 million
Gross margin rate3 of
SG&A expense of
Asset sale gains of
GAAP diluted EPS was
Balance Sheet and Liquidity
Merchandise inventories3 increased
The company ended fiscal year 2024 with cash and cash equivalents of
As of the end of fiscal year 2024, total debt was
1: Reported on a 13-week basis for the fourth quarter of 2024 and on a 14-week basis for the fourth quarter of 2023, and a 52-week basis for fiscal year 2024 and on a 53-week basis for fiscal year 2023, except comparable sales, which are reported on a 13-week basis and 52-week basis for both the quarters and years, respectively, unless otherwise noted. |
2: Inclusive of go-forward locations and digital. For Macy’s, Inc. this reflects go-forward locations and digital across all three nameplates. |
3: Inventories and Gross Margin are not directly comparable to the prior year given the conversion to cost accounting at the beginning of fiscal 2024. |
2025 Guidance
The company is providing its annual fiscal year 2025 guidance. The company believes that Macy’s, Inc. go-forward business comparable owned-plus-licensed-plus-marketplace sales and Core Adjusted EBITDA on a dollar and percent of total revenue basis, defined as Adjusted EBITDA excluding asset sale gains, are the best proxy to measure fundamental improvements during the company’s stabilization and pursuit of profitable growth. The full outlook for 2025 can be found in the presentation posted to www.macysinc.com/investors. For Macy’s, Inc. the company expects:
|
Fiscal 2025 |
Net sales* |
|
Comparable owned-plus-licensed-plus-marketplace sales change |
Down ~ |
Go-forward business comparable owned-plus-licensed-plus-marketplace sales change |
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 which contributed roughly |
|
**: 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, 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. 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 fourth quarter and fiscal year 2024 sales and earnings will be held today (March 6, 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. To participate in the call, 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 13751434 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 Non-GAAP 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 press 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 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 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 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 potential changes to trade policies, 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 3, 2024. Macy’s 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 Operations (Unaudited) (All amounts in millions except percentages and per share figures) |
|||||||||||||||||||
|
13 Weeks Ended February 1, 2025 |
|
14 Weeks Ended February 3, 2024 |
||||||||||||||||
|
$ |
|
% to
|
|
% to Total revenue |
|
$ |
|
% to
|
|
% to Total revenue |
||||||||
Net sales |
$ |
7,768 |
|
|
|
|
|
|
$ |
8,120 |
|
|
|
|
|
||||
Other revenue (Note 1) |
|
239 |
|
|
3.1 |
% |
|
|
|
|
255 |
|
|
3.1 |
% |
|
|
||
Total revenue |
|
8,007 |
|
|
|
|
|
|
|
8,375 |
|
|
|
|
|
||||
Cost of sales |
|
(4,991 |
) |
|
(64.3 |
%) |
|
|
|
|
(5,153 |
) |
|
(63.5 |
%) |
|
|
||
Selling, general and administrative expenses |
|
(2,382 |
) |
|
|
|
(29.7 |
%) |
|
|
(2,405 |
) |
|
|
|
(28.7 |
%) |
||
Gains on sale of real estate |
|
41 |
|
|
|
|
0.5 |
% |
|
|
41 |
|
|
|
|
0.5 |
% |
||
Impairment, restructuring and other costs |
|
(175 |
) |
|
|
|
(2.2 |
%) |
|
|
(1,007 |
) |
|
|
|
(12.0 |
) |
||
Operating income (loss) |
|
500 |
|
|
|
|
6.2 |
% |
|
|
(149 |
) |
|
|
|
(1.8 |
%) |
||
Benefit plan income, net |
|
4 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
||||
Settlement charges |
|
(46 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
||||
Interest expense, net |
|
(22 |
) |
|
|
|
|
|
|
(27 |
) |
|
|
|
|
||||
Income (loss) before income taxes |
|
436 |
|
|
|
|
|
|
|
(180 |
) |
|
|
|
|
||||
Federal, state and local income tax (expense) benefit (Note 2) |
|
(94 |
) |
|
|
|
|
|
|
52 |
|
|
|
|
|
||||
Net income (loss) |
$ |
342 |
|
|
|
|
|
|
$ |
(128 |
) |
|
|
|
|
||||
Basic earnings (loss) per share |
$ |
1.23 |
|
|
|
|
|
|
$ |
(0.47 |
) |
|
|
|
|
||||
Diluted earnings (loss) per share |
$ |
1.21 |
|
|
|
|
|
|
$ |
(0.47 |
) |
|
|
|
|
||||
Average common shares: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
278.5 |
|
|
|
|
|
|
|
275.0 |
|
|
|
|
|
||||
Diluted |
|
282.6 |
|
|
|
|
|
|
|
275.0 |
|
|
|
|
|
||||
End of period common shares outstanding |
|
277.7 |
|
|
|
|
|
|
|
274.2 |
|
|
|
|
|
||||
Supplemental Financial Measures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin (Notes 3 and 4) |
$ |
2,777 |
|
|
35.7 |
% |
|
|
|
$ |
2,967 |
|
|
36.5 |
% |
|
|
||
Depreciation and amortization expense |
$ |
224 |
|
|
|
|
|
|
$ |
232 |
|
|
|
|
|
MACY’S, INC.
Consolidated Statements of Income (Unaudited) (All amounts in millions except percentages and per share figures) |
|||||||||||||||||||
|
52 Weeks Ended February 1, 2025 |
|
53 Weeks Ended February 3, 2024 |
||||||||||||||||
|
$ |
|
% to
|
|
% to Total revenue |
|
$ |
|
% to
|
|
% to Total revenue |
||||||||
Net sales |
$ |
22,293 |
|
|
|
|
|
|
$ |
23,092 |
|
|
|
|
|
||||
Other revenue (Note 1) |
|
713 |
|
|
3.2 |
% |
|
|
|
|
774 |
|
|
3.4 |
% |
|
|
||
Total revenue |
|
23,006 |
|
|
|
|
|
|
|
23,866 |
|
|
|
|
|
||||
Cost of sales |
|
(13,740 |
) |
|
(61.6 |
%) |
|
|
|
|
(14,224 |
) |
|
(61.6 |
%) |
|
|
||
Selling, general and administrative expenses |
|
(8,330 |
) |
|
|
|
(36.2 |
%) |
|
|
(8,375 |
) |
|
|
|
(35.1 |
%) |
||
Gains on sale of real estate |
|
144 |
|
|
|
|
0.6 |
% |
|
|
61 |
|
|
|
|
0.3 |
% |
||
Impairment, restructuring and other costs |
|
(171 |
) |
|
|
|
(0.7 |
%) |
|
|
(1,027 |
) |
|
|
|
(4.3 |
%) |
||
Operating income |
|
909 |
|
|
|
|
4.0 |
% |
|
|
301 |
|
|
|
|
1.3 |
% |
||
Benefit plan income, net |
|
16 |
|
|
|
|
|
|
|
11 |
|
|
|
|
|
||||
Settlement charges |
|
(46 |
) |
|
|
|
|
|
|
(134 |
) |
|
|
|
|
||||
Interest expense, net |
|
(115 |
) |
|
|
|
|
|
|
(135 |
) |
|
|
|
|
||||
Losses on early retirement of debt |
|
(1 |
) |
|
|
|
|
|
|
— |
|
|
|
|
|
||||
Income before income taxes |
|
763 |
|
|
|
|
|
|
|
43 |
|
|
|
|
|
||||
Federal, state and local income tax (expense) benefit (Note 2) |
|
(181 |
) |
|
|
|
|
|
|
2 |
|
|
|
|
|
||||
Net income |
$ |
582 |
|
|
|
|
|
|
$ |
45 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.10 |
|
|
|
|
|
|
$ |
0.16 |
|
|
|
|
|
||||
Diluted earnings per share |
$ |
2.07 |
|
|
|
|
|
|
$ |
0.16 |
|
|
|
|
|
||||
Average common shares: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
277.7 |
|
|
|
|
|
|
|
274.2 |
|
|
|
|
|
||||
Diluted |
|
281.6 |
|
|
|
|
|
|
|
278.2 |
|
|
|
|
|
||||
End of period common shares outstanding |
|
277.7 |
|
|
|
|
|
|
|
274.2 |
|
|
|
|
|
||||
Supplemental Financial Measures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin (Notes 3 and 4) |
$ |
8,553 |
|
|
38.4 |
% |
|
|
|
$ |
8,868 |
|
|
38.4 |
% |
|
|
||
Depreciation and amortization expense |
$ |
881 |
|
|
|
|
|
|
$ |
897 |
|
|
|
|
|
MACY’S, INC.
Consolidated Balance Sheets (Unaudited) (millions) |
|||||||
|
February 1,
|
|
February 3,
|
||||
ASSETS: |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,306 |
|
$ |
1,034 |
||
Receivables |
|
303 |
|
|
293 |
||
Merchandise inventories (Note 4) |
|
4,468 |
|
|
4,361 |
||
Prepaid expenses and other current assets |
|
385 |
|
|
401 |
||
Income taxes receivable |
|
17 |
|
|
— |
||
Total Current Assets |
|
6,479 |
|
|
6,089 |
||
Property and Equipment – net |
|
5,070 |
|
|
5,308 |
||
Right of Use Assets |
|
2,243 |
|
|
2,305 |
||
Goodwill |
|
828 |
|
|
828 |
||
Other Intangible Assets – net |
|
425 |
|
|
430 |
||
Other Assets |
|
1,357 |
|
|
1,286 |
||
Total Assets |
$ |
16,402 |
|
$ |
16,246 |
||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Short-term debt |
$ |
6 |
|
$ |
— |
||
Merchandise accounts payable |
|
1,893 |
|
|
1,913 |
||
Accounts payable and accrued liabilities |
|
2,625 |
|
|
2,571 |
||
Income taxes payable |
|
— |
|
|
48 |
||
Total Current Liabilities |
|
4,524 |
|
|
4,532 |
||
Long-Term Debt |
|
2,773 |
|
|
2,998 |
||
Long-Term Lease Liabilities |
|
2,927 |
|
|
2,986 |
||
Deferred Income Taxes |
|
724 |
|
|
745 |
||
Other Liabilities |
|
902 |
|
|
950 |
||
Shareholders' Equity |
|
4,552 |
|
|
4,035 |
||
Total Liabilities and Shareholders’ Equity |
$ |
16,402 |
|
$ |
16,246 |
MACY’S, INC.
Consolidated Statements of Cash Flows (Unaudited) (Note 5) (millions) |
|||||||
|
52 Weeks Ended February 1, 2025 |
|
53 Weeks Ended February 3, 2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
582 |
|
|
$ |
45 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Impairment, restructuring and other costs |
|
171 |
|
|
|
1,027 |
|
Settlement charges |
|
46 |
|
|
|
134 |
|
Depreciation and amortization |
|
881 |
|
|
|
897 |
|
Benefit plans |
|
2 |
|
|
|
4 |
|
Stock-based compensation expense |
|
58 |
|
|
|
47 |
|
Gains on sale of real estate |
|
(144 |
) |
|
|
(61 |
) |
Deferred income taxes |
|
(52 |
) |
|
|
(244 |
) |
Amortization of financing costs and premium on acquired debt |
|
11 |
|
|
|
10 |
|
Changes in assets and liabilities: |
|
|
|
||||
Decrease in receivables |
|
2 |
|
|
|
7 |
|
Increase in merchandise inventories |
|
(51 |
) |
|
|
(99 |
) |
Decrease in prepaid expenses and other current assets |
|
11 |
|
|
|
18 |
|
Decrease in merchandise accounts payable |
|
(11 |
) |
|
|
(113 |
) |
Decrease in accounts payable and accrued liabilities |
|
(49 |
) |
|
|
(266 |
) |
Increase (decrease) in current income taxes |
|
(69 |
) |
|
|
3 |
|
Change in other assets and liabilities |
|
(110 |
) |
|
|
(104 |
) |
Net cash provided by operating activities |
|
1,278 |
|
|
|
1,305 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(518 |
) |
|
|
(631 |
) |
Capitalized software |
|
(364 |
) |
|
|
(362 |
) |
Proceeds from disposition of assets, net |
|
283 |
|
|
|
86 |
|
Other, net |
|
7 |
|
|
|
(6 |
) |
Net cash used by investing activities |
|
(592 |
) |
|
|
(913 |
) |
Cash flows from financing activities: |
|
|
|
||||
Debt issued |
|
301 |
|
|
|
961 |
|
Debt issuance costs |
|
(1 |
) |
|
|
(1 |
) |
Debt repaid |
|
(524 |
) |
|
|
(963 |
) |
Debt repurchase premium and expenses |
|
1 |
|
|
|
— |
|
Dividends paid |
|
(192 |
) |
|
|
(181 |
) |
Increase in outstanding checks |
|
3 |
|
|
|
2 |
|
Acquisition of treasury stock |
|
(1 |
) |
|
|
(38 |
) |
Net cash used by financing activities |
|
(413 |
) |
|
|
(220 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
273 |
|
|
|
172 |
|
Cash, cash equivalents and restricted cash beginning of period |
|
1,037 |
|
|
|
865 |
|
Cash, cash equivalents and restricted cash end of period |
$ |
1,310 |
|
|
$ |
1,037 |
|
MACY’S, INC.
Consolidated Financial Statements (Unaudited) |
|
|
|
Notes: |
|
(1) Other Revenue is inclusive of the following amounts. All amounts in millions except percentages. |
13 Weeks Ended February 1, 2025 |
|
14 Weeks Ended February 3, 2024 |
|||||||||
|
$ |
|
% to
|
|
$ |
|
% to
|
||||
Credit card revenues, net |
$ |
175 |
|
2.3 |
% |
|
$ |
195 |
|
2.4 |
% |
Macy's Media Network revenue, net |
|
64 |
|
0.8 |
% |
|
|
60 |
|
0.7 |
% |
Other Revenue |
$ |
239 |
|
3.1 |
% |
|
$ |
255 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
||||
Net Sales |
$ |
7,768 |
|
|
|
$ |
8,120 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
52 Weeks Ended February 1, 2025 |
|
53 Weeks Ended February 3, 2024 |
||||||||
|
$ |
|
% to
|
|
$ |
|
% to
|
||||
Credit card revenues, net |
$ |
537 |
|
2.4 |
% |
|
$ |
619 |
|
2.7 |
% |
Macy's Media Network revenue, net |
|
176 |
|
0.8 |
% |
|
|
155 |
|
0.7 |
% |
Other Revenue |
$ |
713 |
|
3.2 |
% |
|
$ |
774 |
|
3.4 |
% |
|
|
|
|
|
|
|
|
||||
Net Sales |
$ |
22,293 |
|
|
|
$ |
23,092 |
|
|
(2) |
Income tax expense of |
|
|
|
Income tax benefit of |
|
|
(3) |
Gross margin is defined as net sales less cost of sales. |
|
|
(4) |
Gross margin and merchandise inventories are not directly comparable to the prior year given the conversion to cost accounting beginning in fiscal 2024. |
|
|
(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
|
|||||
Changes in Comparable Sales |
|||||
|
13 Weeks Ended February 1, 2025 |
||||
|
Macy's, Inc. |
|
Macy's |
||
Decrease in comparable sales on an owned basis (Note 6) |
(1.1 |
%) |
|
(1.9 |
%) |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
1.3 |
% |
|
1.0 |
% |
Increase (decrease) in comparable sales on an owned-plus-licensed-plus-marketplace basis |
0.2 |
% |
|
(0.9 |
%) |
|
13 Weeks Ended February 1, 2025 |
||||||||||
|
Macy's, Inc.
|
|
Macy's
|
|
|
|
Bluemercury |
||||
Increase (decrease) in comparable sales on an owned basis (Note 6) |
(0.7 |
)% |
|
(1.6 |
)% |
|
4.8 |
% |
|
6.2 |
% |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
1.3 |
% |
|
1.1 |
% |
|
1.7 |
% |
|
— |
% |
Increase (decrease) in comparable sales on an owned-plus-licensed-plus-marketplace basis |
0.6 |
% |
|
(0.5 |
%) |
|
6.5 |
% |
|
6.2 |
% |
|
13 Weeks Ended
|
|
|
Macy's First 50 locations |
|
Increase in comparable sales on an owned basis (Note 6) |
0.8 |
% |
Impact of departments licensed to third parties (Note 7) |
0.4 |
% |
Increase in comparable sales on an owned-plus-licensed basis |
1.2 |
% |
|
52 Weeks Ended February 1, 2025 |
||||
|
Macy's, Inc. |
|
Macy's |
||
Decrease in comparable sales on an owned basis (Note 6) |
(2.0 |
%) |
|
(2.6 |
%) |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
1.1 |
% |
|
1.0 |
% |
Decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis |
(0.9 |
%) |
|
(1.6 |
%) |
|
52 Weeks Ended February 1, 2025 |
||||||||||
|
Macy's, Inc.
|
|
Macy's
|
|
|
|
Bluemercury |
||||
Increase (decrease) in comparable sales on an owned basis (Note 6) |
(1.7 |
)% |
|
(2.4 |
)% |
|
1.7 |
% |
|
4.0 |
% |
Impact of departments licensed to third parties and marketplace sales (Note 7) |
1.1 |
% |
|
1.1 |
% |
|
0.8 |
% |
|
— |
% |
Increase (decrease) in comparable sales on an owned-plus-licensed-plus-marketplace basis |
(0.6 |
%) |
|
(1.3 |
%) |
|
2.5 |
% |
|
4.0 |
% |
|
52 Weeks Ended
|
|
|
Macy's First 50 locations |
|
Increase in comparable sales on an owned basis (Note 6) |
1.6 |
% |
Impact of departments licensed to third parties (Note 7) |
0.2 |
% |
Increase in comparable sales on an owned-plus-licensed basis |
1.8 |
% |
Notes: |
|
(6) |
Represents the period-to-period percentage change in net sales from stores in operation for one full fiscal year during the 13 and 52 weeks ended February 1, 2025, and the 14 and 53 weeks ended February 3, 2024, adjusting for the 53rd week in fiscal 2023. 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, adjusting for the 53rd week in fiscal 2023, 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 and Adjusted EBITDA |
|||||||
|
13 Weeks Ended February 1, 2025 |
|
14 Weeks Ended February 3, 2024 |
||||
Net income (loss) |
$ |
342 |
|
$ |
(128 |
) |
|
Interest expense, net |
|
22 |
|
|
27 |
|
|
Federal, state and local income tax expense (benefit) |
|
94 |
|
|
(52 |
) |
|
Depreciation and amortization |
|
224 |
|
|
232 |
|
|
EBITDA |
|
682 |
|
|
79 |
|
|
Impairment, restructuring and other costs |
|
175 |
|
|
1,007 |
|
|
Settlement charges |
|
46 |
|
|
5 |
|
|
Adjusted EBITDA |
$ |
903 |
|
$ |
1,091 |
|
|
52 Weeks Ended February 1, 2025 |
|
53 Weeks Ended February 3, 2024 |
||||
Net income |
$ |
582 |
|
$ |
45 |
|
|
Interest expense, net |
|
115 |
|
|
135 |
|
|
Losses on early retirement of debt |
|
1 |
|
|
— |
|
|
Federal, state and local income tax expense (benefit) |
|
181 |
|
|
(2 |
) |
|
Depreciation and amortization |
|
881 |
|
|
897 |
|
|
EBITDA |
|
1,760 |
|
|
1,075 |
|
|
Impairment, restructuring and other costs |
|
171 |
|
|
1,027 |
|
|
Settlement charges |
|
46 |
|
|
134 |
|
|
Adjusted EBITDA |
$ |
1,977 |
|
$ |
2,236 |
|
Adjusted Net Income and Adjusted Diluted Earnings Per Share |
|||||||||||||||
|
13 Weeks Ended February 1, 2025 |
|
14 Weeks Ended February 3, 2024 |
||||||||||||
|
Net Income |
|
Diluted Earnings Per Share |
|
Net Income (Loss) |
|
Diluted Earnings (Loss) Per Share |
||||||||
As reported |
$ |
342 |
|
|
$ |
1.21 |
|
|
$ |
(128 |
) |
|
$ |
(0.47 |
) |
Impairment, restructuring and other costs |
|
175 |
|
|
|
0.62 |
|
|
|
1,007 |
|
|
|
3.60 |
|
Settlement charges |
|
46 |
|
|
|
0.16 |
|
|
|
5 |
|
|
|
0.02 |
|
Income tax impact of certain items identified above |
|
(56 |
) |
|
|
(0.19 |
) |
|
|
(256 |
) |
|
|
(0.91 |
) |
As adjusted to exclude certain items above |
$ |
507 |
|
|
$ |
1.80 |
|
|
$ |
628 |
|
|
$ |
2.24 |
|
|
52 Weeks Ended February 1, 2025 |
|
53 Weeks Ended February 3, 2024 |
||||||||||||
|
Net Income |
|
Diluted Earnings Per Share |
|
Net Income |
|
Diluted Earnings Per Share |
||||||||
As reported |
$ |
582 |
|
|
$ |
2.07 |
|
|
$ |
45 |
|
|
$ |
0.16 |
|
Impairment, restructuring and other costs |
|
171 |
|
|
|
0.61 |
|
|
|
1,027 |
|
|
|
3.69 |
|
Settlement charges |
|
46 |
|
|
|
0.16 |
|
|
|
134 |
|
|
|
0.48 |
|
Losses on early retirement of debt |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax impact of certain items identified above |
|
(55 |
) |
|
|
(0.20 |
) |
|
|
(293 |
) |
|
|
(1.05 |
) |
As adjusted to exclude certain items above |
$ |
745 |
|
|
$ |
2.64 |
|
|
$ |
913 |
|
|
$ |
3.28 |
|
Free Cash Flow |
|||
|
52 Weeks Ended February 1, 2025 |
||
Net cash provided by operating activities |
$ |
1,278 |
|
Purchase of property and equipment |
|
(518 |
) |
Capitalized software |
|
(364 |
) |
Proceeds from disposition of assets, net |
|
283 |
|
Free cash flow |
$ |
679 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250306176756/en/
Media – Chris Grams
communications@macys.com
Investors – Pamela Quintiliano
investors@macys.com
Source: Macy’s, Inc.