The US retail group Macy’s Inc. suffered significant losses in sales and earnings in the 2023/24 financial year. The parent company of the Macy’s, Bloomingdale’s and Bluemercury chains then presented a comprehensive reform package on Tuesday.
In the past financial year, which ended on February 3rd, the group’s total sales amounted to 23.9 billion US dollars (22.0 billion euros). This corresponded to a decrease of 6.2 percent compared to the previous year. Retail revenue fell 5.5 percent to $23.1 billion.
The retailer is forecasting further losses for the current year
The retailer was able to increase its gross margin and reduce operating expenses, but had to record high one-time charges. The reported net profit slipped by 91.1 percent to 105 million US dollars (97 million euros). Adjusted for special items, net income fell by 22.7 percent to $973 million.
Management is forecasting further declines for the current 2024/25 financial year. Retail revenue is expected to reach between $22.2 and $22.9 billion. The forecast for diluted earnings per share adjusted for special items, which was $3.50 last year, is $2.45 to $2.85.
The group wants to close around 150 Macy’s stores and expand with the Bloomingdale’s and Bluemercury chains
In addition to the current results, the company announced new “strategic priorities”. These include, among other things, improving the product range and omnichannel capabilities of the retailer Macy’s. In addition, around 150 of the chain’s branches that are not sufficiently productive are to be closed. Approximately 50 of these closures are already planned for the current fiscal year.
In return, the group wants to expand its position in the luxury segment. To this end, he plans to open about 15 new Bloomingdale’s department stores and at least 30 additional branches of the Bluemercury cosmetics chain over the next three years.