Prior to its January 9 presentation at the 2023 ICR Conference in Orlando, Macy’s provided updates to its fiscal fourth quarter sales and adjusted EPS guidance provided on its November 17, 2022 earnings call, with net sales expected to come in at the low-end to mid-point of the previously issued range of $8.16 billion to $8.4 billion.
In announcing the updated financials, Jeff Gennette, Macy’s chairman and CEO, said, “Our teams executed well during a competitive holiday season. In an environment where discretionary spending was under pressure, we operated with precision and agility. Black Friday/Cyber Monday sales were in line with our expectations, while the week leading up to and following Christmas was ahead. However, the lulls of the non-peak holiday weeks were deeper than anticipated. Overall, our occasion apparel and gift-giving business were strengths and inventory composition and price points aligned with customers’ needs. Throughout the season, Bloomingdale’s and Bluemercury continued to outperform. Across nameplates, we stayed close to our customers, utilizing data and analytics tools to respond to shifts in demand. This has contributed to clean inventories and an expected gross margin rate roughly in line with previously issued fourth-quarter guidance.”
He added that, given current macroeconomic indicators and the company’s proprietary credit card data, “We believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly. We take a balanced approach to merchandise receipts and remain committed to offering fashion and value across nameplates and channels, with the capacity to adjust in-season buys and chase into areas of strength. As we look further ahead, the efficiencies we’ve built into our business coupled with our financial health, data-driven decision processes, and agile ways of working, allow us to operate from a position of strength while continuing to invest in our future.”