Macy's Q4 revenue is poor, plans to close 150 stores

It is learned that recently, Macy's announced its fourth quarter and full-year financial results for 2023. Due to the continued decline in revenue, Macy's also announced that it will close about 150 stores by the end of 2026. The company said that this strategy will help the company simplify operations and focus on its core business.

The financial report shows that Macy's net sales in Q4 were US$8.12 billion, a year-on-year decrease of 1.7% from US$8.264 billion in the same period last year; the net loss was US$71 million, compared with a net profit of US$508 million in the same period last year.

For the full year, Macy's net sales in 2023 were $23.092 billion, with a net profit of $105 million. In comparison, net sales in 2022 were $24.442 billion, with a net profit of $1.177 billion.

Looking ahead, Macy's warned that it expects first-quarter earnings per share of $0.10-0.16, well below the market's expectation of $0.45. In addition, the company expects full-year adjusted earnings per share to be $2.45 to $2.85, below analysts' estimates of $3. Macy's emphasized that 2024 will be a year of "transition and investment."

Macy's said that many of the closed stores are close to other Macy's branches, so some employees can be transferred. It is worth noting that Macy's also plans to add 15 Bloomingdale's and 30 Bluemercury branches by 2026 to expand its luxury business.

According to the report, same-store sales of Macy's brands fell 6% year-on-year in the fourth quarter, while sales of high-end brand Bloomingdale's fell 1.5%. Bluemercury, which sells beauty and skin care products, saw sales increase by 2.3%. Although the company's overall sales were down from last year, Macy's beauty and discount categories performed well during the holiday season.

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