Macy’s reports stable annual sales and decline in profits

The US retail group Macy’s Inc. exceeded its own profit forecast in the fourth quarter of the 2022/23 financial year. The current results, which the company presented on Thursday, therefore ensured that the share price immediately increased by more than ten percent.

As expected, the figures for the full financial year, which ended on January 29, were mixed given the difficult general conditions. The parent company of the retailers Macy’s, Bloomingdales and Bluemercury achieved sales of 24.4 billion US dollars (23.1 billion euros), just short of the previous year’s level (-0.1 percent). Like-for-like sales increased by 0.3 percent. Overall, sales in the stationary branches grew by three percent, while they fell by six percent in the online business.

Higher discounts and cost increases, however, led to a significant drop in profits. Operating profit fell 26 percent to 1.73 billion euros, net income fell 18 percent to 1.18 billion US dollars (1.11 billion euros).

The prospects for the current year remain rather cautious. Management expects sales to be in the range of $23.7 to $24.2 million (-3 to -1 percent). Adjusted diluted earnings per share, which were last seen at $4.48, are expected to shrink to between $3.67 and $4.11.

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