US department store chain Macy’s has reported that its net income fell by 60% to $62m in the first quarter (Q1) of fiscal 2024 (FY24), compared to $155m in the corresponding quarter of FY23. 

The retailer’s diluted earnings per share also fell to $0.22 from $0.56 in Q1 FY23. 

For the 13 weeks ended 4 May 2024, Macy’s reported net sales of $4.84bn, a decrease of 2.7% from $4.98bn in the same period of 2023.  

Comparable sales were down by 1.2% on an owned basis and by 0.3% on an owned-plus-licensed-plus-marketplace basis.  

However, Macy’s go-forward business comparable sales showed a slight increase of 0.1% on an owned-plus-licensed-plus-marketplace basis. 

The performance of Macy’s individual nameplates varied, with Macy’s comparable sales down 1.6% on an owned basis. 

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Bloomingdale’s business comparable sales grew 0.8% and its Bluemercury brand also saw a 4.3% increase in comparable sales on an owned basis.  

Macy’s reported a decrease in selling, general and administrative (SG&A) expenses, which amounted to $1.9bn for the quarter, a $39m reduction from the same quarter of the previous year.  

However, operating income suffered a significant drop, falling from $244m in Q1 FY23 to $125m in Q1 FY24. 

Despite the downturn, Macy’s has raised its net sales expectations for FY24 to between $22.3bn and $22.9bn, up from the previous forecast of $22.2bn to $22.9bn.  

Macy’s chairman and CEO Tony Spring said: “We are encouraged by our customers’ response to our Bold New Chapter strategy, resulting in sales near the high end of our outlook. Our teams executed with discipline and efficiency, which contributed to first-quarter earnings that exceeded our expectations.  

“At the Macy’s nameplate, go-forward business performance was led by our First 50 locations, which achieved comparable sales growth year over year and are a leading indicator for our go-forward fleet.  

Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s can return to sustainable, profitable growth.”