US-based department store chain Macy’s has reduced its full-year guidance for fiscal 2022 (FY22) as it expects a decline in consumer spending.
During the second quarter (Q2) of FY22, the company posted $5.60bn in net sales, down from $5.64bn in the same period of the previous fiscal year (FY21).
Macy’s comparable sales for Q2 dropped by 1.5% and 1.6% on an owned basis and an owned-plus-licensed basis respectively from last year.
Comparable sales for the company’s namesake business also declined by 2.9% on an owned basis during the quarter, while its Bloomingdale’s and Bluemercury businesses registered growths of 8.8% and 7.6% respectively on an owned basis.
Macy’s digital sales for the three months to 30 July decreased by 5% year-over-year (YoY), representing 30% of its net sales.
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The company’s diluted earnings per share were $0.99, down from $1.08 in Q2 2021.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) were $614m and its adjusted EBITDA were $616m.
For FY22, Macy’s expects its full year net sales to be between $24.34bn and $24.58bn, down from its previous expectation of $24.46bn to $24.70bn.
Macy’s chairman and CEO Jeff Gennette said: “During the second quarter, we delivered solid results, despite the challenging environment.
“Our teams have consistently responded to the dynamic landscape with disciplined, data-driven actions to ensure the health and stability of our business.
“We believe that we are well-positioned to respond to changing consumer behaviours.
“Despite inflationary pressures, consumers continued to shop Macy’s as a style source and leading gifting destination.
“Additionally, Bloomingdale’s and Bluemercury captured demand for luxury brands, resulting in both nameplates outperforming in the quarter.”
Based in New York City, Macy’s operates Macy’s, Bloomingdale’s and Bluemercury among other brands.
The company claims to have one of the retail industry’s largest e-commerce businesses, which is integrated with its store network.
