In this articleMFollow your favorite stocksCREATE FREE ACCOUNTThe Macy’s company logo is seen at the Macy’s store on Herald Square on January 19, 2024 in New York City. Macy’s department-store chain announced that they will be laying off roughly 2,350 employees which is about 3.5% of their workforce. The company says that it will also be closing five stores in order to adjust to the online-shopping era. (Photo by Michael M. Santiago/Getty Images)Michael M. Santiago | Getty Images News | Getty ImagesMacy’s fiscal first-quarter earnings topped Wall Street’s expectations on Tuesday, as the retailer said it saw early signs of momentum in its turnaround strategy.Even so, the department store operator’s quarterly revenue came in just shy of expectations. Macy’s net sales were roughly 3% lower than a year ago, as its namesake website and store continued to be the weakest part of the business.Macy’s raised its full-year earnings expectations to reflect the first-quarter beat, along with the low end of its sales outlook. But the retailer said in a news release that it “assumes customers will continue to be discerning in their discretionary purchases.”Macy’s is getting smaller as it tries to grow sales again. The department store operator, which includes Bloomingdale’s and beauty chain Bluemercury, said earlier this year that it would close about 150 of its namesake stores. That’s more than a quarter of namesake Macy’s locations. It had already announced five store closures and more than 2,300 layoffs in January.Yet the retailer said it will invest in parts of the business that have fared better, including the roughly 350 Macy’s stores that will stay open. It plans to open more Bloomingdale’s and Bluemercury locations, and smaller Macy’s stores in suburban strip malls.So far, Macy’s has focused on 50 namesake stores. For example, those locations have had a sharper presentation of merchandise and more employees on the sales floor to help shoppers.In a news release, CEO Tony Spring said those first 50 Macy’s put up the strongest performance of its namesake stores in the quarter – a potentially promising indicator. “Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth,” he said.Here’s what Macy’s reported for the three-month period that ended May 4 compared with what Wall Street expected, based on a survey of analysts by LSEG:Earnings per share: 27 cents adjusted vs. 15 cents expectedRevenue: $4.85 billion adjusted vs $4.86 billion expectedMacy’s first-quarter net income tumbled 60% to $62 million, or 22 cents per share, compared with $155 million, or 56 cents per share, in the year-ago quarter. Net sales fell from $4.98 billion in the year-ago period.[embedded content]Macy’s now anticipates net sales of between $22.3 billion and $22.9 billion, which would still represent a drop from $23.09 billion in 2023. It expects comparable sales, which take out the impact of store openings and closures, to range from a decline of about 1% to a gain of 1.5% on an owned-plus-licensed basis and including third-party …
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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articleMFollow your favorite stocksCREATE FREE ACCOUNTThe Macy’s company logo is seen at the Macy’s store on Herald Square on January 19, 2024 in New York City. Macy’s department-store chain announced that they will be laying off roughly 2,350 employees which is about 3.5% of their workforce. The company says that it will also be closing five stores in order to adjust to the online-shopping era. (Photo by Michael M. Santiago/Getty Images)Michael M. Santiago | Getty Images News | Getty ImagesMacy’s fiscal first-quarter earnings topped Wall Street’s expectations on Tuesday, as the retailer said it saw early signs of momentum in its turnaround strategy.Even so, the department store operator’s quarterly revenue came in just shy of expectations. Macy’s net sales were roughly 3% lower than a year ago, as its namesake website and store continued to be the weakest part of the business.Macy’s raised its full-year earnings expectations to reflect the first-quarter beat, along with the low end of its sales outlook. But the retailer said in a news release that it “assumes customers will continue to be discerning in their discretionary purchases.”Macy’s is getting smaller as it tries to grow sales again. The department store operator, which includes Bloomingdale’s and beauty chain Bluemercury, said earlier this year that it would close about 150 of its namesake stores. That’s more than a quarter of namesake Macy’s locations. It had already announced five store closures and more than 2,300 layoffs in January.Yet the retailer said it will invest in parts of the business that have fared better, including the roughly 350 Macy’s stores that will stay open. It plans to open more Bloomingdale’s and Bluemercury locations, and smaller Macy’s stores in suburban strip malls.So far, Macy’s has focused on 50 namesake stores. For example, those locations have had a sharper presentation of merchandise and more employees on the sales floor to help shoppers.In a news release, CEO Tony Spring said those first 50 Macy’s put up the strongest performance of its namesake stores in the quarter – a potentially promising indicator. “Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth,” he said.Here’s what Macy’s reported for the three-month period that ended May 4 compared with what Wall Street expected, based on a survey of analysts by LSEG:Earnings per share: 27 cents adjusted vs. 15 cents expectedRevenue: $4.85 billion adjusted vs $4.86 billion expectedMacy’s first-quarter net income tumbled 60% to $62 million, or 22 cents per share, compared with $155 million, or 56 cents per share, in the year-ago quarter. Net sales fell from $4.98 billion in the year-ago period.[embedded content]Macy’s now anticipates net sales of between $22.3 billion and $22.9 billion, which would still represent a drop from $23.09 billion in 2023. It expects comparable sales, which take out the impact of store openings and closures, to range from a decline of about 1% to a gain of 1.5% on an owned-plus-licensed basis and including third-party …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
