Macy’s beat a Wall Street earnings estimate as comps fell at its namesake banner but gained at its Bloomingdale’s and Bluemercury operations.
Net income for the quarter was $508 million, or $1.83 per diluted share, versus $742 million, or $2.44 per diluted share, in the year-before period, the company reported. Adjusted for one-time events, net income was $524 million, or $1.88 per diluted share, versus $745 million or $2.45 per diluted share, in the year-previous quarter.
An analyst consensus estimate published by Yahoo Finance called for adjusted diluted earnings per share of $1.57 and revenues of $8.25 billion.
Fourth-quarter company comparable sales slid 3.3% on an owned basis and 2.7% on an owned-plus-licensed basis versus the 2021 period. Macy’s pointed out that the metrics were up 3.1% and 3.3%, respectively, versus the 2019 fourth quarter.
Compared to 2021, Macy’s banner comps fell 3.9% on an owned basis and 3.3% on an owned-plus-licensed basis. Comps at Macy’s Bloomingdale’s banner gained 1.2% on an owned basis and 0.6% on an owned-plus-licensed basis while Bluemercury comps advanced 7.2%.
Net sales were $8.26 billion versus $8.67 billion in the year-earlier quarter. Operating income was $676 million versus $1.02 billion in the period a year prior.
For the full fiscal year, net income was $1.18 billion, or $4.19 per diluted share, versus $1.43 billion, or $4.55 per diluted share, in the year before, the company noted Adjusted net income was $1.26 billion, or $4.48 per diluted share, versus $1.67 billion, or $5.31 per diluted share, in the year previous.
Net sales were $24.44 billion versus $24.46 billion in the year earlier. Operating income was $1.73 billion versus $2.35 billion in the year prior.
“We successfully navigated 2022 from a position of financial and operational strength,” said Jeff Gennette, Macy’s chairman and CEO. “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. 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. We were competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales. As we look to 2023 and beyond, we believe our five growth vectors which include our private brands reimagination, off-mall expansion, online marketplace, luxury brands acceleration and personalized offers and communication will further solidify our modern department store positioning.”
Adrian Mitchell, Macy’s CF0, added, “We have built a solid foundation for long-term, profitable growth through enterprise-wide investments in our supply chain, data and analytics, pricing science, digital and technology which have enabled our operations and talented teams to become more efficient and flexible. Looking ahead, we will continue to take a balanced approach to expense management and capital allocation. With an ongoing focus on maintaining our financial health and strong balance sheet, we will make disciplined investments to drive growth while returning capital to shareholders.”
