Macy’s noted that Nike will be back in its stores starting October this year.
Macy’s Inc (NYSE: M), an American conglomerate holding company engaged in consumer goods, released its first quarter earnings results on June 01. According to the announcement, Macy’s reported net sales of $4.98 billion during the first three months of the year. (Q1 2023), which represented a decline of almost 7 percent YoY basis. However, analysts polled by REFINITIV expected the company to report revenue of $5.04 billion during the first quarter.
Specifically, the company noted that first-quarter net income was $155 million, representing 56 cents per share, which fell from $286 million, or 98 cents per share, a year earlier. As a result, M shares continued to trade around $13.09 during Thursday’s pre-market with a bearish outlook for the year, down about 4 percent.
As per the latest stock market data, M shares have declined nearly 40 per cent in the last three months after registering a fall of 42 per cent last year.
Macy’s Q1 2023 Financial Highlights
The company, valued at $3.83 billion, announced its regular quarterly dividend of 16.54 cents per share on common stock, payable on July 3, 2023, to shareholders Snapshot taken on June 15, 2023. This is after reporting its inventories for the first quarter. came to $ 4.607 billion. However, the company noted that the remainder of the year will be lower than expected.
“The company is taking a cautious approach for the remainder of the year and is lowering its annual 2023 sales and earnings guidance to reflect the anticipated macroeconomic impacts to the consumer,” Macy’s noted,
Still, the company’s CEO Jeff Gennett said the first quarter beat expectations in gross margin rate, which grew to 40.0 percent from 39.6 percent in the first quarter of 2022.
For the Bluemercury segment, Macy’s noted that comparable sales increased 4.3 percent on an ownership basis. Causing approximately 676,000 active customers to purchase the Bluemercury brand on a trailing twelve month basis. The company noted that Bloomingdale’s brands reported 4.1 million active customers on a trailing-month basis. Nonetheless, Bloomingdale’s comparable sales fell about 3.9 percent on an ownership basis.
“During the first quarter, we delivered a solid beat on our gross margin rate and bottom line expectations, enabled by our disciplined teams, the strength of our inventory management and operating efficiencies. We planned for the year assuming that consumer economic health would be challenged, but beginning in late March, demand trends in our discretionary categories weakened further,” Gennett said.
Further, the company promised its customers that Nike Returning to our stores from October. As a result, Macy’s anticipates that sales will peak in the second half of the year as the festive season begins.
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