Macy’s noted that Nike will return to its stores, starting from October this year.
Macy’s Inc (NYSE: M), an American conglomerate holding company that engages in consumer goods, released its first-quarter earnings results on June 01. According to the announcement, Macy’s reported net sales of $4.98 billion during the first three months of the year (Q1 2023), which represented a decline of approximately 7 percent YoY basis. However, analysts surveyed by REFINITIV expected the company to report revenue of about $5.04 billion during the first quarter.
Notably, the company noted that the first quarter’s net income was $155 million, representing 56 cents per share, having dropped from $286 million or 98 cents per share a year ago. As a result, M shares continued with this year’s bearish outlook during Thursday’s pre-market to trade around $13.09, down approximately 4 percent.
According to the latest stock market data, M shares have dropped approximately 40 percent in the last three months, after registering a decline of 42 percent last year.
Macy’s Q1 2023 Financial Highlights
The $3.83 billion valued company declared its regular quarterly dividend of 16.54 cents per share on the common stock, which is payable on July 3, 2023, to shareholders snapshot taken on June 15, 2023. This is after reporting its merchandise inventories for the first quarter came in at $4.607 billion. However, the company noted that the remaining part of the year will be lower than expected.
“The company is taking a cautious approach to the remainder of the year and is reducing its annual 2023 sales and earnings guidance to reflect anticipated macroeconomic impacts to the consumer,” Macy’s noted.
Nevertheless, the company’s Chief Executive Officer Jeff Gennette noted that the first quarter beat the expectations in gross margin rate that came in at 40.0 percent, up from 39.6 percent in the first quarter of 2022.
As for the Bluemercury segment, Macy’s noted that comparable sales gained 4.3 percent on an owned basis. Whereby approximately 676,000 active customers shopped the Bluemercury brand, on a trailing twelve-month basis. The company noted that Bloomingdale’s brand reported 4.1 million active customers on a trailing twelve-month basis. Nonetheless, Bloomingdale’s comparable sales dropped approximately 3.9 percent on an owned basis.
“During the first quarter, we delivered a solid beat on our gross margin rate and bottom line expectations enabled by our disciplined teams, the strength of our inventory management, and operational efficiencies. We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories,” Gennette noted.
Forward, the company promised its customers that Nike is returning to its stores starting in October. As a result, Macy’s anticipates that sales will peak as the festive season kicks in in the second half of the year.
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