For the first quarter, Macy’s diluted earnings per share were 22 cents and adjusted diluted earnings per share were 27 cents compared to 56 cents in the same quarter of 2023.

Net sales of 4.8 billion dollars were down 2.7 percent, comparable sales were down 1.2 percent on an owned basis and down 0.3 percent on an owned-plus-licensed-plus-marketplace basis.

Despite the drop in first quarter sales and earnings, the company has raised profit outlook as the signs of turnaround plan seem to be taking shape.

“We are encouraged by our customers’ response to our Bold New Chapter strategy resulting in sales near the high end of our outlook,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.

Highlights of Macy’s first quarter results

Macy’s go-forward business comparable sales, inclusive of go-forward locations and digital declined 0.9 percent on an owned basis and increased 0.1 percent on an owned-plus-licensed-plus-marketplace basis.

Across the company’s nameplates, Macy’s comparable sales were down 1.6 percent on an owned basis and 0.4 percent on an owned-plus-licensed-plus-marketplace basis, while go-forward business comparable sales, inclusive of Macy’s go-forward locations and digital declined 1.3 percent on an owned basis and remained flat on an owned-plus-licensed-plus-marketplace basis.

The retailer plans to close 50 stores by the end of this fiscal year. In the first quarter, Macy’s said that the 50 stores that represent the company’s future saw a comparable sales increase of 3.3 percent. Bloomingdale’s comparable sales were up 0.8 percent on an owned basis and up 0.3 percent on an owned-plus-licensed-plus-marketplace basis, while Bluemercury comparable sales were up 4.3 percent on an owned basis. Other revenue of 154 million dollars decreased by 37 million dollars.

Macy’s raises earnings outlook

The company continues to view 2024 as a transition and investment year. Macy’s added that the updated outlook assumes customers will continue to be discerning in their discretionary purchases and provides flexibility to respond to the competitive landscape and promotional environment.

Macy’s now anticipates net sales to be between 22.3 billion dollars and 22.9 billion dollars, a drop from 23.09 billion dollars reported in 2023. The company expects comparable sales to be down 1 percent or up 1.5 percent on an owned-plus-licensed basis and including third-party marketplace sales.

It expects adjusted earnings per share of between 2.55 dollars and 2.90 dollars against the previous outlook of between 2.45 dollars and 2.85 dollars.