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Feb 01, 2025
Macy's Q4 2024 Earnings Report
Macy's reported a 4.3% decline in Q4 2024 revenue, but exceeded EPS expectations due to disciplined cost management.
Key Takeaways
Macy’s reported Q4 2024 revenue of $7.77 billion, down 4.3% year-over-year. Comparable sales declined 1.1% on an owned basis but increased 0.2% when including licensed and marketplace sales. Net income was $342 million, with EPS of $1.21 and adjusted EPS of $1.80, exceeding guidance. Despite a lower gross margin of 35.7%, SG&A expenses were managed effectively, resulting in an operating income of $500 million.
Q4 revenue declined 4.3% year-over-year to $7.77 billion.
Comparable sales increased 0.2% on an owned-plus-licensed-plus-marketplace basis.
Adjusted EPS of $1.80 exceeded the company’s guidance.
Gross margin decreased by 80 basis points to 35.7% due to accounting changes and product mix shifts.
Revenue by Segment
Forward Guidance
Macy’s expects a revenue decline in FY 2025 due to store closures and macroeconomic pressures, but aims to improve profitability through operational efficiencies and a focus on higher-margin categories.
Positive Outlook
- Go-forward business comparable sales expected to be flat to down 2.0%.
- Adjusted EBITDA margin projected between 8.4% and 8.6%.
- Planned capital investments to enhance digital and omnichannel capabilities.
- Resumption of share repurchases under the $1.4 billion authorization.
- Adjusted EPS guidance between $2.05 and $2.25.
Challenges Ahead
- Net sales expected to decline to a range of $21.0 billion to $21.4 billion.
- Impact of store closures expected to reduce revenue by $700 million.
- Macroeconomic uncertainty could pressure consumer demand.
- Higher SG&A expenses expected due to investments in long-term growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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