1. News
February 23, 2022

Macy’s reports 23% rise in fourth-quarter net sales for FY21

The retailer expects its sales to range between $24.5bn and $24.7bn in FY22.

US-based department store chain Macy’s has reported net sales of $8.67bn for the fourth quarter (Q4) of the fiscal year 2021 (FY21), a 23% increase from $6.87bn a year earlier.

The company’s net sales for the full year grew by 34% to $24.4bn, compared with $17.3bn in 2020.

For Q4 2021, Macy’s reported a net income of $742m, a 129% surge from $160m in the same period a year earlier.

The retailer made a profit of $1.4bn for the full year, having recorded a $3.9bn loss in FY20.

Macy’s chairman and CEO Jeff Gennette said: “Our results in the fourth quarter delivered a strong end to a solid year.

“I am proud that Macy’s outperformed expectations on both the top and bottom lines every quarter in 2021, despite Covid-19 related disruptions, supply chain issues, labour shortages and elevated inflation.

“Our business has momentum and is serving more customers at more touchpoints in their shopping journey.”

Macy’s’ comparable sales in Q4 were up by 28.3% on an owned basis and 27.8% on an owned-plus-licensed basis compared with a year earlier.

The company’s digital sales increased by 12% during the three-month period.

Macy’s said that around 7.2 million new customers shopped from the Macy’s brand in Q4, while 58% of its new customers came from its digital channels.

The retailer’s diluted earnings per share (EPS) for the quarter were $2.44, while its adjusted diluted EPS were $2.45. Both of these exceeded the company’s predictions for the period.

For FY22, Macy’s expects positive momentum backed by ‘strong’ consumer demand.

The company expects its sales to be between $24.5bn and $24.7bn, which would be flat to up by 1% compared with FY21.

It also anticipates adjusted diluted EPS in the range of $4.13 to $4.52.

Last month, Macy’s announced it would reduce its store colleagues’ working hours due to rising cases of Covid-19 in the US.