In previewing early fourth-quarter results, including the 2024 holiday season, Nordstrom came out ahead of Macy’s, which still made some notable gains.
In discussing the early results, Macy’s touted the strength and upcoming expansion of its First 50 remodeled stores initiative and its recently adopted Bold New Chapter strategy.
Macy’s stated its go-forward stores — those not scheduled for closure and including the First 50 and other viable store locations — achieved quarter-to-date comparable sales growth in the fourth quarter’s first nine weeks up to January 4 versus the same nine-week period in 2024, the company reported. First 50 locations and luxury nameplates Bloomingdale’s and Bluemercury continued enjoying positive comps. and Macy’s digital channel achieved comp growth in the period, the retailer said.
Across the business, Macy’s comps were approximately flat year over year, the company indicated. With Macy’s First 50 locations excluded, but inclusive of non-go-forward locations, the business performed below expectations and generated negative comparable sales.
Macy’s anticipates that fourth quarter 2024 adjusted diluted earnings per share will be in-line with the previously announced $1.40 to $1.65 guidance and net sales will be at to slightly below the low-end of the already issued $7.8 billion to $8 billion range.
“Our Bold New Chapter strategy continues to gain traction, putting us on track to achieve our second quarter of sequential comparable sales improvement,” said Macy’s Chairman and CEO Tony Spring. “Reflecting ongoing positive response to Macy’s First 50 locations, we are excited to expand initiatives to an additional 75 Macy’s locations in Fiscal 2025. We are well-positioned to build momentum with a stronger Macy’s store fleet and our teams focused on the successful execution of the three pillars of our Bold New Chapter strategy.”
Meanwhile, Nordstrom reported company net sales increased 4.9% and comps gained 5.8% in the nine-week holiday period ended January 4, versus the like period in 2024. For the Nordstrom banner, net sales increased 3.7%, and comps increased 6.5% from the prior-year period. Nordstrom Rack net sales gained 7.4%, and comps increased 4.3%.
Based on holiday results, Nordstrom has updated its fiscal 2024 outlook and now expects revenue growth, including retail sales and credit card revenues, of 1.5% to 2.5% versus the week-longer prior fiscal year, which includes 135 basis point unfavorable impact from the 53rd week, compared with its earlier outlook of flat to 1% year over year growth. The company anticipates a same-store sales gain of 2.5% to 3.5% versus comparable 52 weeks in fiscal 2023, Nordstrom noted, up from the previous outlook of 1% to 2% growth.
“As a result of our efforts to remain competitive in the promotional environment and the strength of our offering, our holiday sales in November and December exceeded the expectations we shared during our most recent earnings call,” said Erik Nordstrom, chief company CEO. “For the full year, we’re raising our topline outlook and reaffirming our profitability guidance.”
