Macy’s posted solid gains in the first quarter beating analyst sales and earnings estimates and posting double-digit comparable sales gains.
Adjusted for one-time events, net income was $315 million, or $1.08 per diluted share, versus $126 million, or 39 cents per diluted share, in the year-prior period, the company indicated.
Macy’s beat a first-quarter analyst consensus adjusted diluted earnings per share estimate of 82 cents and a sales estimate of $5.33 billion.
Comparable sales gained 12.8% on an owned basis and 12.4% on an owned-plus-licensed basis in the quarter, year over year. For the Macy’s banner itself, comps gained 10.7% on an owned basis and 10.1%, on an owned-plus-licensed basis year over year in the period, Macy’s reported.
Digital sales increased 2% versus the year-past quarter while increasing 34% versus the 2019 first quarter, Macy’s added.
Net sales were $5.35 billion versus $4.71 billion in the year-before quarter. Operating income was $463 million versus $215 million in the year-previous period.
In a conference call, Jeff Gennette, Macy’s chairman and CEO, said, “Macy’s Inc. delivered solid results thanks, in large part, to the efficiencies we built into our business through the Polaris strategy. Throughout the quarter, our teams stayed focused on the customer, and we executed on our plan for long-term growth. We’ve leveraged our transformation muscle and quickly pivoted to satisfy customers with what and where they wanted to shop.”
This despite political and macroeconomic headwinds, he said. Macy’s saw better than expected sales in stores and lower than expected digital revenues as shifts in shopper behavior changed quicker than the company expected. Sales moved away from popular pandemic categories such as soft home, casualwear and activewear, Gennette said, and into occasion-based apparel including dresses, women’s shoes and men’s clothing and furnishings.
He added that Macy’s Bloomingdale’s banner had made substantial gains in the quarter, including a 26.9% comp advance year over year on an owned-plus-licensed basis, by putting together an assortment that can effectively serve younger consumers in their lives and homes. 26.9
In announcing first-quarter sales results, Gennette said, “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. While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop. We saw a notable shift back to occasion-based apparel and in-store shopping, as well as continued strength in sales of luxury goods. Our omnichannel ecosystem, which spans the value spectrum, has supported our ability to flex our wide assortment of categories, products and brands to capture consumer demand despite the volatile environment. As we look ahead to the rest of 2022, we remain focused on our customers and the successful execution of our Polaris long-term growth strategy. We believe that the efficiencies we built into our business enable us to navigate through the current uncertain macro environment.”