New York: As advances in other companies were offset by poor performance at the majority of Macy’s department shops, the company’s consolidated revenues decreased somewhat.
The company’s overall net sales dropped 2.4% to $4.742 billion, with comparable sales declining 1.3% on an owned-plus-licensed-plus-marketplace basis and 2.4% on an owned basis.
The company reported the following results, broken down by business:
- The overall net sales of Macy’s nameplates decreased by 3.1%, while comparable sales on an owned basis decreased by 3.0% and on an owned-plus-licensed-plus-marketplace basis decreased by 2.2%. Fragrances, gowns, and activewear for both men and women were among the best-performing categories.
- Macy’s nameplate same-store sales The company’s first 50 outlets, where it is experimenting with new retail tactics, saw a 3.9% increase in comparable sales for the third straight quarter.
- There was a 2.6% loss in comp at Macy’s go-forward stores, which are the Macy’s locations that are not part of the 150 that are scheduled to close by 2026, and a 1.8% decline on an owned-plus-licensed-plus-marketplace basis.
- On an owned basis, Bloomingdale’s net sales increased 1.4%, while on an owned-plus-licensed-plus-marketplace basis, they increased 3.2%. Digital, beauty, and modern clothing were the main motivators.
- The 15th straight quarter saw comparable sales growth, with bluemercury net sales up 3.2% and comp up 3.3% on an owned basis.
- Additionally, Macy’s Inc. exceeded projections by making $66 million from the sale of non-go-forward real estate assets.
“As we continued to make progress on our Bold New Chapter strategy initiatives, we delivered third quarter sales in line with expectations,” stated Tony Spring, chairman and CEO of Macy’s Inc. Crucially, comparable sales for November are rising beyond third-quarter levels for all nameplates.
Other information from Q3:
- Merchandise stocks climbed 3.9% year-over-year, demonstrating improved inventory mix and supply chain efficiencies.
- At the end of the third quarter, Macy’s Inc. had $315 million in cash and cash equivalents and $2.770 billion in borrowing capacity.
- $86 million in short-term borrowings under the company’s asset-based credit facility made up the $2.865 billion total debt, and there were no significant long-term debt maturities until 2027.
- Through a previously announced tender offer, the corporation voluntarily retired $220 million in debt during the quarter.
Results are temporarily pending
Due to intentional accounting irregularities in spending, Macy’s said this morning that it will delay the publishing of its entire fiscal third quarter results until early December.
The business discovered a problem with delivery costs in one of its accrual accounts while preparing its unaudited results. According to an independent investigation conducted so far, one employee in charge of accounting for small package delivery expenses purposefully made false accrual entries in order to conceal between $132 million and $154 million in total delivery expenses from the fourth quarter of 2021 through the fiscal quarter that ended on November 2, 2024.
In that time frame, Macy’s Inc. recorded shipping expenses of almost $4.36 billion.
“The company’s cash management activities and vendor payments were not impacted in any way by the incorrect accounting accrual entries,” the company stated. “The company no longer employs the person who engaged in this behavior. No other employees have been found to have been involved in the probe.
On December 11, Macy’s Inc. anticipates releasing its complete third-quarter financial results together with its outlook for the fourth quarter and the entire year.
