Wed, Sep 4, 10:52 AM (132 days ago)
For the second quarter of 2024, Macy's, Inc. reported a decline in net sales to $4,937 million from $5,130 million in Q2 2023, reflecting a 3.8% decrease. Total revenue also fell to $5,096 million, down from $5,280 million. The operating income increased to $222 million, compared to $124 million in the prior year, aided by a reduction in cost of sales as a percentage of net sales (59.5% vs. 61.9%). Net income recovered to $150 million, contrasting with a loss of $22 million in Q2 2023, resulting in diluted EPS of $0.53. Cash flow from operations was $137 million, down from $271 million, attributed to lower cash inflows from inventory changes. The company maintained a strong liquidity position with $646 million in cash. The ongoing "Bold New Chapter" strategy aims to improve store productivity and enhance the omni-channel experience, despite challenges like inflation and macroeconomic pressures. Comparable sales for the go-forward business fell 3.8%. Future operations may be impacted by the closure of underperforming stores and a focus on digital growth, while uncertainties remain regarding consumer spending trends and competitive pressures.