Macy's Exceeds Q1 Forecasts with Promising Turnaround Progress
Macy's fiscal first-quarter earnings exceeded Wall Street's expectations, reflecting early signs of progress in its turnaround strategy. The company reported revenues of $4.85 billion, down 2.7% from the previous year but still above analyst projections of $3.82 billion. Macy's CEO Tony Spring noted that 50 locations that received more investment performed better than other namesake stores. Despite this, net sales were roughly 3% lower due to weak performance from its namesake website and store.
As part of its strategic shift, Macy's plans to close about 150 underperforming locations while opening new Bloomingdale's and Bluemercury stores. The company has raised its full-year earnings expectations to reflect the recent beat, although it still anticipates a comparable sales decline of up to 1.5% on an owned-plus-licensed basis. Additionally, Macy's is focusing on expanding small-format stores and enhancing digital sales to drive future growth. The company now expects to end 2024 with net revenue between $22.3 billion and $23.9 billion.
