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Macy's Offers Update on Q4 Performance, Revises Sales Guidance
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Macy's Inc. (M - Free Report) provided an update on its fourth-quarter fiscal 2024 performance, alongside slightly pulling down its sales outlook. However, the continued success of targeted initiatives at Macy’s First 50 locations and strong performances at luxury brands Bloomingdale’s and Bluemercury lay a solid foundation for growth.
Macy’s Key Performance Overview
Macy’s First 50 locations, alongside its luxury nameplates Bloomingdale’s and Bluemercury, have continued to perform well, achieving positive comparable sales growth for the nine-week period ending Jan. 4, 2025. These segments remain key drivers of the company’s performance and align with its long-term strategy. Macy’s digital channel saw also comparable sales growth, further supporting its omnichannel strategy.
However, Macy’s overall comparable sales for the quarter-to-date were roughly flat. The company witnessed underperformance in its non-First 50 locations, including non-go-forward stores, which fell short of expectations and recorded negative comparable sales during the period.
M Stock Past Three-Month Performance
Image Source: Zacks Investment Research
What Does Macy’s Expect in Q4?
Macy’s now expects its fourth-quarter 2024 net sales to be at or slightly below the low end of its previously anticipated $7.8-$8 billion. However, management is maintaining its guidance for adjusted earnings per share, which is expected to remain in the previously expected $1.40-$1.65 for the fiscal fourth quarter.
Macy’s Strategic Adjustments & Expansion Plans
Despite the downward revision in net sales, Macy’s continues to make progress with its Bold New Chapter strategy, setting itself on track for a second consecutive quarter of sequential comparable sales improvement. It remains confident in its ability to drive growth through initiatives in Macy’s First 50 locations. These stores continue to see positive responses, and in fiscal 2025, Macy’s plans to expand these initiatives to an additional 75 locations, further strengthening its core store fleet.
The company is also maintaining its focus on growing its digital and omnichannel presence, which has shown positive results in the quarter. This continued emphasis on digital channels, alongside the expansion of high-potential stores, forms the foundation of Macy’s broader strategy to position itself for long-term success. The company plans to release its full fourth-quarter and fiscal 2024 results in early March 2025.
Conclusion
While it has faced challenges with Macy’s non-First 50 locations, the company remains committed to its strategic initiatives, which have delivered positive results in key areas. While its revised net sales outlook is concerning, the company’s investments in its strongest segments, particularly Macy’s First 50 locations, Bloomingdale’s, Bluemercury and digital channels, provide a pathway for future growth. Macy’s continues to adapt its strategy to meet the evolving needs of its customers and position itself for sustainable success in the retail market.
In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 6.9% compared with the Zacks Retail - Regional Department Stores industry’s 0.8% decline.
Stocks to Consider
We have highlighted three better-ranked stocks, namely The Gap, Inc. (GAP - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the fiscal 2024 figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for ANF’s fiscal 2025 earnings and sales indicates growth of 69.3% and 15%, respectively, from the fiscal 2024 levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for DECK’s fiscal 2024 earnings and sales indicates growth of 13.6% and 13.8%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 41.1%.
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Macy's Offers Update on Q4 Performance, Revises Sales Guidance
Macy's Inc. (M - Free Report) provided an update on its fourth-quarter fiscal 2024 performance, alongside slightly pulling down its sales outlook. However, the continued success of targeted initiatives at Macy’s First 50 locations and strong performances at luxury brands Bloomingdale’s and Bluemercury lay a solid foundation for growth.
Macy’s Key Performance Overview
Macy’s First 50 locations, alongside its luxury nameplates Bloomingdale’s and Bluemercury, have continued to perform well, achieving positive comparable sales growth for the nine-week period ending Jan. 4, 2025. These segments remain key drivers of the company’s performance and align with its long-term strategy. Macy’s digital channel saw also comparable sales growth, further supporting its omnichannel strategy.
However, Macy’s overall comparable sales for the quarter-to-date were roughly flat. The company witnessed underperformance in its non-First 50 locations, including non-go-forward stores, which fell short of expectations and recorded negative comparable sales during the period.
M Stock Past Three-Month Performance
Image Source: Zacks Investment Research
What Does Macy’s Expect in Q4?
Macy’s now expects its fourth-quarter 2024 net sales to be at or slightly below the low end of its previously anticipated $7.8-$8 billion. However, management is maintaining its guidance for adjusted earnings per share, which is expected to remain in the previously expected $1.40-$1.65 for the fiscal fourth quarter.
Macy’s Strategic Adjustments & Expansion Plans
Despite the downward revision in net sales, Macy’s continues to make progress with its Bold New Chapter strategy, setting itself on track for a second consecutive quarter of sequential comparable sales improvement. It remains confident in its ability to drive growth through initiatives in Macy’s First 50 locations. These stores continue to see positive responses, and in fiscal 2025, Macy’s plans to expand these initiatives to an additional 75 locations, further strengthening its core store fleet.
The company is also maintaining its focus on growing its digital and omnichannel presence, which has shown positive results in the quarter. This continued emphasis on digital channels, alongside the expansion of high-potential stores, forms the foundation of Macy’s broader strategy to position itself for long-term success. The company plans to release its full fourth-quarter and fiscal 2024 results in early March 2025.
Conclusion
While it has faced challenges with Macy’s non-First 50 locations, the company remains committed to its strategic initiatives, which have delivered positive results in key areas. While its revised net sales outlook is concerning, the company’s investments in its strongest segments, particularly Macy’s First 50 locations, Bloomingdale’s, Bluemercury and digital channels, provide a pathway for future growth. Macy’s continues to adapt its strategy to meet the evolving needs of its customers and position itself for sustainable success in the retail market.
In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 6.9% compared with the Zacks Retail - Regional Department Stores industry’s 0.8% decline.
Stocks to Consider
We have highlighted three better-ranked stocks, namely The Gap, Inc. (GAP - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the fiscal 2024 figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for ANF’s fiscal 2025 earnings and sales indicates growth of 69.3% and 15%, respectively, from the fiscal 2024 levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for DECK’s fiscal 2024 earnings and sales indicates growth of 13.6% and 13.8%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 41.1%.