Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

4 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

4 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

4 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

4 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

4 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

5 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

5 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

5 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

5 days ago
Macy's Tops Expectations for the First Quarter as Luxury and Beauty Sales Shine
gvw_ap_news
By Associated Press
Published 1 year ago on
May 21, 2024

Macy's first quarter results beat Wall Street expectations despite a fall in sales and profits, with a positive impact seen from turnaround efforts. (AP File)

Share

Getting your Trinity Audio player ready...

NEW YORK — Macy’s sales and profits fell during the first quarter as higher costs and other financial challenges had customers pulling back on spending.

Yet the quarterly results Tuesday beat Wall Street expectations. And Macy’s, which also operates upscale Bloomingdale’s and beauty chain Bluemercury, said it is seeing a positive impact from its turnaround efforts that include closing underperforming stores and upgrading others. Macy’s also raised its annual outlook.

Consumer Spending Trends

Americans are still spending but they’re getting more selective and are also more likely to wait until something goes on sale. Retailers are also seeing higher delinquency rates in their credit card businesses.

CEO Tony Spring, who took over in February, said that all income groups are being more thoughtful with their spending. Bloomingdale’s, for example, registered weaker sales in luxury handbags and shoes as consumers shift to less expensive collections.

Higher income customers are focusing on their interests and passions, Spring said, while customers in the lower tier are starting to make choices increasingly with rent and family obligations in mind.

“I expect the consumer to remain under pressure,” Spring said during a call with industry analysts Tuesday. “We’ve got a big year in front of us. Maybe there will be rate cuts. But it’s an uncertain environment, and I think our job is not to assume anything different on the things we don’t control.”

Store Expansion and Closures

Macy’s is accelerating the expansion of its new, small-format stores, while closing locations where sales have lagged.

The company is opening 30 small-format locations through the fall of 2025, nearly tripling the current count to roughly 42. Macy’s believes the smaller stores are more convenient for customers. It’s closing 150 unproductive stores over the next three years, a third of them by end of 2024.

Upgrading Stores and Focusing on Luxury Sales

At the same time Macy’s is upgrading its remaining 350 traditional stores, adding more salespeople to fitting areas and shoe departments, and adding more visual displays. It is also pivoting more to luxury sales, which have held up better overall. Macy’s said it will open 15 higher end Bloomingdale’s stores and 30 luxury Bluemercury cosmetics locations to cater to customers seeking higher end services and goods.

Macy’s reported earnings of $62 million, or 22 cents per share for the quarter ended May 4. That compares with $155 million, or 56 cents per share in the year-ago period.

Adjusted per share earnings were 27 cents, or 11 cents better than Wall Street was looking for, according to a survey by FactSet.

Revenue dipped 2.7% to $4.85 billion, but that also topped analyst projections of $4.82 billion,

Comparable store sales— those from online channels and from established stores — fell 1.2%, excluding licensed businesses like cosmetics and its third-party marketplace.

Macy’s comparable sales fell 1.6%. Bluemercury comparable sales jumped 4.3% and Bloomingdale’s comparable sales rose 0.8%.

Macy’s said that its first 50 traditional locations that have been revamped achieved comparable sales gains of 3.3% in the quarter, excluding licensed and third-party businesses. Spring calls them the “leading indicator” of its business in the future.

Quarterly credit card revenues declined by $45 million to $117 million, Macy’s said, in part due to higher delinquency rates.

Macy’s is under pressure by investors to accelerate growth. In April, it named two independent directors to its board backed by Arkhouse Management, ending for now a push by the activist investor to replace most of the board and eventually, acquire the iconic department store chain.

Macy’s shares fell less than a percent in early trading.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Netanyahu Nominates Trump for Nobel Peace Prize

DON'T MISS

Netanyahu Meets Trump at White House as Israel, Hamas Discuss Ceasefire

DON'T MISS

Trump Executive Order Seeks End to Wind and Solar Energy Subsidies

DON'T MISS

US Threatens California With Legal Action Over Transgender Sports Law

DON'T MISS

US Veterans Affairs Will Cut Nearly 30,000 Jobs, Far Fewer Than Planned

DON'T MISS

Houston Astros Donate $1M to Help Recovery From Texas Floods

DON'T MISS

Tucker Carlson Aired Interview With President of Iran

DON'T MISS

California Fails to Stop 23andMe Founder From Re-Acquiring Company

DON'T MISS

Madera County Multi-Agency Effort Leads to Arrest of Felony Suspect in Atwater

DON'T MISS

Fresno Police Arrest DUI Driver During Crackdown on Illegal Street Racing and Sideshows

UP NEXT

Netanyahu Meets Trump at White House as Israel, Hamas Discuss Ceasefire

UP NEXT

Trump Executive Order Seeks End to Wind and Solar Energy Subsidies

UP NEXT

US Threatens California With Legal Action Over Transgender Sports Law

UP NEXT

US Veterans Affairs Will Cut Nearly 30,000 Jobs, Far Fewer Than Planned

UP NEXT

Houston Astros Donate $1M to Help Recovery From Texas Floods

UP NEXT

Tucker Carlson Aired Interview With President of Iran

UP NEXT

California Fails to Stop 23andMe Founder From Re-Acquiring Company

UP NEXT

Madera County Multi-Agency Effort Leads to Arrest of Felony Suspect in Atwater

UP NEXT

Fresno Police Arrest DUI Driver During Crackdown on Illegal Street Racing and Sideshows

UP NEXT

July 4 Weekend Was No Picnic for Fresno-Area Firefighters. How Bad Did It Get?

US Threatens California With Legal Action Over Transgender Sports Law

8 hours ago

US Veterans Affairs Will Cut Nearly 30,000 Jobs, Far Fewer Than Planned

8 hours ago

Houston Astros Donate $1M to Help Recovery From Texas Floods

8 hours ago

Tucker Carlson Aired Interview With President of Iran

8 hours ago

California Fails to Stop 23andMe Founder From Re-Acquiring Company

8 hours ago

Madera County Multi-Agency Effort Leads to Arrest of Felony Suspect in Atwater

8 hours ago

Fresno Police Arrest DUI Driver During Crackdown on Illegal Street Racing and Sideshows

8 hours ago

July 4 Weekend Was No Picnic for Fresno-Area Firefighters. How Bad Did It Get?

10 hours ago

Tulare County Seizes 300 Pounds of Illegal Fireworks Over Fourth of July

10 hours ago

US Proposes Rules That Could Boost Oil, Gas Output in US West

10 hours ago

Netanyahu Nominates Trump for Nobel Peace Prize

WASHINGTON – Israeli Prime Minister Benjamin Netanyahu on Monday told President Donald Trump he had nominated him for the Nobel Peace ...

7 hours ago

Israeli Prime Minister Benjamin Netanyahu looks on during a bilateral dinner with U.S. President Donald Trump (not pictured), at the White House in Washington, D.C., U.S., July 7, 2025. (Reuters/Kevin Lamarque)
7 hours ago

Netanyahu Nominates Trump for Nobel Peace Prize

U.S. President Donald Trump meets with Israeli Prime Minister Benjamin Netanyahu at the White House in Washington, D.C., U.S., July 7, 2025. (Reuters/Kevin Lamarque)
7 hours ago

Netanyahu Meets Trump at White House as Israel, Hamas Discuss Ceasefire

A wind farm is shown in Movave, California, U.S., November 8, 2019. (Reuter File)
7 hours ago

Trump Executive Order Seeks End to Wind and Solar Energy Subsidies

U.S. Secretary of Education Linda McMahon testifies before a Senate Appropriations hearing on U.S. President Donald Trump's budget request for the Department of Education, on Capitol Hill in Washington, D.C., U.S., June 3, 2025. (Reuters File)
8 hours ago

US Threatens California With Legal Action Over Transgender Sports Law

United States Department of Veterans Affairs logo and U.S. flag are seen in this illustration taken April 23, 2025. (Reuters File)
8 hours ago

US Veterans Affairs Will Cut Nearly 30,000 Jobs, Far Fewer Than Planned

A group of search and rescue workers paddle a boat in the Guadalupe River in the aftermath of deadly flooding in Kerr County, Texas, U.S., July 7, 2025. (Reuters/Sergio Flores)
8 hours ago

Houston Astros Donate $1M to Help Recovery From Texas Floods

8 hours ago

Tucker Carlson Aired Interview With President of Iran

Attendees visit the 23andMe booth at the RootsTech annual genealogical event in Salt Lake City, Utah, U.S., February 28, 2019. (Reuters File)
8 hours ago

California Fails to Stop 23andMe Founder From Re-Acquiring Company

Help continue the work that gets you the news that matters most.

Search

Send this to a friend