Macy’s Q1 sales and earnings jump, raises profit outlook

Diluted earnings per share at Macy’s Inc. were 98 cents in the first quarter and adjusted diluted earnings per share were 1.08 dollars compared to diluted earnings per share of 32 cents and adjusted diluted earnings per share of 39 cents last year.

The company’s net sales increased to 5,348 million dollars, while comparable sales were up 12.8 percent on an owned basis and up 12.4 percent on an owned-plus-licensed basis. Digital sales increased 2 percent, while increasing 34 percent versus the first quarter of 2019.

“Our company delivered solid results in the first quarter despite a challenging operating environment. We delivered strong earnings, beating our estimates, and sales that were in line with our expectations,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.

Macy’s labels increase sales in Q1

Macy’s brand comparable sales were up 10.7 percent on an owned basis and up 10.1 percent, on an owned-plus-licensed basis.

Bloomingdale’s comparable sales on an owned basis were up 28.1 percent and on an owned-plus-licensed basis were up 26.9 percent driven by strong sales of dresses, men's tailored, men's and women's contemporary apparel and luggage.

Bluemercury comparable sales were up 25.2 percent on an owned and owned-plus-licensed basis driven by the increase in store traffic, better-than-expected growth in its private brands and the increase in demand for colour in lip, face and eye categories.

Macy's raises outlook

For the year ahead, net sales are expected to increase by flat to 1 percent to the range of 24,460 million to 24,700 million dollars, adjusted EBITDA as a percent of sales to range between 11.2 to 11.7 percent and adjusted diluted earnings per share in the range of 4.53 to 4.95 dollars.

Macy’s board of directors declared a regular quarterly dividend of 15.75 cents per share, payable July 1, 2022, to shareholders of record at the close of business on June 15, 2022.