Macy’s annual results exceed expectations

US retailer Macy’s Inc. also did surprisingly well in the fourth quarter of fiscal 2021/22. The annual results that the group published on Tuesday exceeded expectations.

For the year ended January 31, net sales were $24.5 billion (EUR 21.6 billion), a 41.0 percent growth over 2020/21. On a comparable basis, revenues increased by 43.0 percent year-on-year and by 3.1 percent compared to the pre-crisis year 2019/20.

Thanks to the strong increase in sales, a significantly higher gross margin and the effects of the “Polaris” reform program launched in 2020, the group returned to profitability: net income amounted to 1.43 billion US dollars (1.26 billion euros), after the previous year still had to post a loss of 3.94 billion US dollars. Adjusted for special effects, the surplus reached 1.67 billion US dollars, the corresponding deficit in 2020/21 was 688 million US dollars.

The retailer is entering the new fiscal year with cautious optimism: “Macy’s, Inc. expects positive momentum for 2022, supported by the Polaris initiatives and strong consumer demand,” says a statement. “At the same time, the company anticipates macroeconomic challenges such as inflation, supply chain pressures, labor shortages and possible Covid-19 variants.”

Annual sales are forecast to be between US$24.460 billion and US$24.700 billion. The target range for adjusted diluted earnings per share is between $4.13 and $4.52. In the most recent financial year, it had reached a level of 5.31 US dollars.

ttn-12