SG&A expense as a percent of sales was 28.0%, an improvement of 220 basis points from the fourth quarter of 2020 and 210 basis points from the fourth quarter of 2019. Are you sure you want to block %USER_NAME%? Create a list of the investments you want to track. View advanced insights on financial statements, including Delivery expense as a percent of net sales increased 200 basis points from 2019, due to increased digital penetration. The company licenses third parties to operate certain departments in its stores and online and receives commissions from these third parties based on a percentage of their net sales. The company also operates as a beauty products and spa retailer. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results. Beat earnings , beat revenue , higher forecast = down 5%. It said its annual outlook takes this into consideration. Gennette said Tuesday that Macy's will accelerate all of these initiatives, and more. These people shop three to 3.5 times more frequently than people who just shop either in stores or online, rather than both, Macy's said. Key to the Boards decision-making were the high separation costs and ongoing costs from operating separated businesses, as well as high execution risk for the business and the companys customers. All quotes are in local exchange time. The company continued to see strong performance from luxury throughout the fourth quarter. All Rights Reserved. Delivery expense as a percent of net sales increased 190 basis points from the fourth quarter of 2019, due to increased digital penetration and holiday delivery expense surcharges. Nordstrom has, meantime, reportedly been working with AlixPartners to look at a spinoff of its off-price division, Nordstrom Rack. Privacy Notice, and
Macy's also offered an upbeat outlook for fiscal 2022, calling for sales to range between $24.46 billion and $24.7 billion, which would be flat to up 1% compared with 2021. Categories that were solid throughout the pandemic, including home, fragrances, jewelry, watches and sleepwear, continued to see strong sales performance. Thanks to the hard work of our colleagues, successful execution of Polaris, and the strategic allocation of our capital, we believe we are well-positioned to successfully navigate the macro-economic headwinds we expect in 2022.. Macy's sees adjusted earnings per share for the year to be between $4.13 and $4.52. Intraday data delayed at least 15 minutes or per exchange requirements. The company cited strong performance in categories including home, fragrances, jewelry, watches and sleepwear. Have Watchlists? The Boards review reaffirmed our conviction that we are pursuing a robust strategy, and it provided us with greater clarity on several initiatives that could be further accelerated to unlock additional value for our shareholders, which we are pursuing, said Gennette. All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Free cash flow has certain limitations, including that it does not reflect adjustment for certain non-discretionary cash flows such as mandatory debt repayments. The quarter benefited from strong expense leverage in conjunction with growing sales driven by disciplined expense management and improved productivity resulting from the company's Polaris strategy, including the permanent cost savings realized in 2020. This comment has already been saved in your. Excluding one-time items, the retailer earned $2.45 a share, better than the $2 that analysts were looking for. NEW YORK--(BUSINESS WIRE)--Macys, Inc. (NYSE: M) today reported financial results for the fourth quarter and fiscal 2021 and provided 2022 guidance. Macy's, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. And today, coupling 2021 performance with the long-term outlook, the company is announcing further actions to enhance shareholder value: The companys Board of Directors, with the assistance of independent financial, legal and third-party advisors and the companys management team, completed a lengthy comprehensive review of the companys e-commerce and brick-and-mortar operations to consider the best path forward for Macys, Inc. to enhance value for shareholders. %USER_NAME% was successfully added to your Block List. : Spam and/or promotional messages and comments containing links will be removed. Be respectful. Historical and current end-of-day data provided by FACTSET. Even negative opinions can be framed positively and diplomatically. It may therefore take some time before it appears on our website. Analysts were looking for same-store sales growth of 24.25%, according to Refinitiv. Earnings per share: $2.45 adjusted vs. $2 expected, Revenue: $8.67 billion vs. $8.47 billion expected. growth rates and metrics that provide an in-depth view This browser is no longer supported at MarketWatch. Macy's also offered an upbeat outlook for 2022, in spite of continued macro headwinds including inflation, supply chain pressures and labor shortages. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties) in its net sales. This will result in immediate suspension of the commentor and his or her account. We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. EBITDA and adjusted EBITDA are reconciled to GAAP net income (loss). A webcast of Macy's, Inc.s call with analysts and investors to report its fourth quarter and full-year 2021 sales and earnings will be held today (February 22, 2022) at 8:00 a.m. Macy's also emphasized that people who shop both in its stores and on its website are more loyal and bigger spenders. The company said in a press release it anticipates positive momentum and strong consumer demand in the months ahead. Avoid profanity, slander or personal attacks. To maintain share of consumers' wallets, Macy's has invested in launching more of its own private labels, revamping its loyalty program, overhauling its website and opening smaller, off-mall shops with a more modern look. And during the pandemic, valuations of pure e-commerce retail companies soared as consumers shifted much of their spending online. ET on March 9, 2022. The review included the evaluation of a variety of alternatives for the companys e-commerce business. Cookie Notice (). We do not allow any sharing of private or personal contact or other information about any individual or organization. It also expects consumer demand to tick higher as more people return to offices and events in the spring and summer. any of each other's Investing.com's posts. 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Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. No stores have been excluded as a result of the COVID-19 pandemic. Log in to see them here or sign up to get started. Net income increased from $103M to $286M. This compares to diluted earnings per share of $0.50 and Adjusted diluted earnings per share of $0.80 in the fourth quarter of 2020. Platinum, Gold and Silver customers in the Star Rewards Loyalty program continued to engage, with the average customer spend up 9% versus the fourth quarter of 2019. Kohl's has similarly been pressured to spin off its online business from its real estate. E-commerce represented 39% of net sales. Such calculation includes all digital sales and excludes commissions from departments licensed to third parties. Digital sales rose 12% year over year and increased 36% on a two-year basis. Our team will continue our work to deliver an even bolder and brighter future for Macys, Inc. and all its stakeholders, including our shareholders, our colleagues and our customers.. Please see the final pages of this news release for important information regarding the calculation of the companys non-GAAP financial measures. Users can opt to see 4 periods of either annual or quarterly information. For example, Macy's plans to open 10 small-format locations in 2022. Inventory was up 16% from 2020 and down 16% versus 2019. Also on Tuesday, Macy's announced a new $2 billion share repurchase program. Management also believes free cash flow provides a better indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investment opportunities. For the best MarketWatch.com experience, please update to a modern browser. As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy's, Macys Backstage, Market by Macys, Bloomingdale's, Bloomingdales The Outlet, Bloomies, and bluemercury brands. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse. The MOM data from the Quarterly reportMOM=(current period - last period)/last period *100%, Please check network settings and try again, You've successfully got advanced quotes worth 5000 HKD. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. In addition, some financial ratios derived from these reports are featured. This compares to diluted earnings per share of $1.09 and Adjusted diluted earnings per share of $2.12 in the fourth quarter of 2019. Across our iconic nameplates, including Macys, Bloomingdales and Bluemercury, we help our customers express their unique style and celebrate special moments, big and small. During the holiday period, the department store chain said it brought in roughly 7.2 million new customers. Revenues reflect Women's Apparel segment increase of 24% to $1.14B, Retail Sales, Women's Apparel increase of 24% to $1.14B. Macy's reported fiscal fourth-quarter earnings and sales that outpaced analysts' estimates and said that a strategic review has prompted the retailer to accelerate its turnaround plans. During 2021, Macys, Inc.s strong performance allowed it to take significant actions to strengthen its financial position and return capital to shareholders. Comparable owned plus licensed sales three-year CAGR*. Digital penetration was 39% of net sales, a 5-percentage point decline from the fourth quarter of 2020, but a 9-percentage point improvement over the fourth quarter of 2019. performance. We are more digitally led and customer centric and believe we are better positioned for long-term sustainable and profitable growth, Gennette continued. Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales in the calculation of comparable sales. The company successfully completed its $500 million share repurchase program in the fourth quarter of 2021, and in total repurchased approximately 20.5 million shares during the year. In addition to prior year comparisons, Macys, Inc. is providing comparisons to 2019 to benchmark its performance given the impact of the pandemic last year. Macy's on Tuesday reported fiscal fourth-quarter earnings and sales that outpaced analysts' estimates and said that a strategic review has prompted the retailer to accelerate its turnaround plans. Income tax expense of $240 million and $436 million, or 24.3% and 23.4% of pretax income, for the 13 and 52 weeks ended January 29, 2022, respectively, reflect a different effective tax rate as compared to the companys federal income tax statutory rate of 21% driven primarily by the impact of state and local taxes. For the full year, after eliminating repeat visits between quarters, Macys new customers increased 40% over 2020 and 26% over 2019 to 19.4 million. All Rights Reserved. Comments that are written in all caps and contain excessive use of symbols will be removed. In addition, any of the above-mentioned violations may result in suspension of your account. By doing so, you and %USER_NAME% will not be able to see Performance continued to be driven by improved bad debt levels due to strong customer credit health. Unlike cash flow provided by operating activities, free cash flow includes the impact of capital expenditures, providing a more complete picture of cash generation. Analysts and investors may call in on 1-800-458-4121, passcode 7189632. "We are more confident in our path forward as one integrated company," he said. (All amounts in millions except percentages and per share figures). A brief financial summary of Macys Inc as well as the most significant critical numbers from each of its financial reports. Macys disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Kohl's has notably been losing share, however, M Science noted. The company voluntarily retired debt early in 2021, driving its year-end Adjusted Debt-to-Adjusted EBITDAR leverage ratio well below the companys 2021 target of no more than 2.5x. Adrian Mitchell, chief financial officer of Macys, Inc., will participate in a fireside chat at the UBS Global Consumer and Retail Conference at 9:00 a.m. People wear facemasks as they walk through Herald Square on January 8, 2021 in New York City. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A replay of the conference call and slides can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call. He said the Macy's brand should be known for offering personalized style recommendations and expert fashion advice to consumers. The amounts of commissions earned on sales of departments licensed to third parties are not material to its net sales for the periods presented. Subscriber Agreement & Terms of Use,
Analysts had been looking for revenue of $24.23 billion, which would have been a slight decrease from the prior year. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Free cash flow is reconciled to GAAP net cash provided by operating activities. Racism, sexism and other forms of discrimination will not be tolerated. I am proud that Macys, Inc. outperformed expectations on both the top and bottom lines every quarter in 2021, despite COVID-19 related disruptions, supply chain issues, labor shortages and elevated inflation, said Jeff Gennette, chairman and chief executive officer of Macys, Inc. Our business has momentum and is serving more customers at more touchpoints in their shopping journey., Our team began the large-scale work of transforming Macys, Inc. two years ago when we launched the Polaris strategy, and today we believe the evidence is clear our business is stronger, more agile, and financially healthier. Here's how Macy's did in its fourth quarter compared with what analysts were anticipating, based on a survey compiled by Refinitiv: Net income for the three-month period ended Jan. 29 grew to $742 million, or $2.44 a share, from $160 million, or 50 cents per share, a year earlier. ), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. Since youve just unblocked this person, you must wait 48 hours before renewing the block. Only post material thats relevant to the topic being discussed. This compares to a diluted loss per share of $(12.68) and an Adjusted diluted loss per share of $(2.21) in 2020. investors@macys.com, Macys, Inc. Fourth Quarter and Full-Year 2021 Results Exceed Expectations, Internet Explorer presents a security risk. The metric was up 6.1% on a two-year basis. The company reinstated its regular quarterly dividend in 2021 and today reported its board of directors declared a regular quarterly dividend of 15.75 cents per share on Macy's, Inc.s common stock, an increase of approximately 5%. The companys annual guidance reflects a measured plan based on these assumptions. The Bronze segment of the Star Rewards Loyalty program, its youngest and most diverse loyalty tier, continued to grow with the addition of 3.5 million new members during the quarter. During the quarter, Star Rewards program members made up approximately 66% of the total Macy's brand comparable owned plus licensed sales, up approximately 8 percentage points versus fourth quarter 2019. But in recent months, that momentum has slowed and shoppers are back inside stores. And Macy's is up slightly from the 18.1% of market share it commanded back in July, according to the report. The company does not provide reconciliations of the forward-looking non-GAAP measures of adjusted EBITDA, diluted earnings per share, comparable sales on an owned plus licensed basis, and free cash flows to the most directly comparable forward-looking GAAP measures because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. The income tax expense of $154 million and income tax benefit of $846 million, or 49.0% and 17.7% of pretax income and loss, respectively, for the 13 and 52 weeks ended January 30, 2021, reflected a different projected benefit rate as compared to the company's federal income tax statutory rate of 21% primarily due to the carryback of net operating losses as permitted under the CARES Act. Macy's had been working with consulting firm AlixPartners to consider the best path forward for the business. Important Information Regarding Non-GAAP Financial Measures Copyright 2022 MarketWatch, Inc. All rights reserved. It has one concept called Market by Macy's, and it's also testing a smaller Bloomingdales store, Bloomie's. Your ability to comment is currently suspended due to negative user reports. Approximately 7.2 million new customers shopped the Macy's brand during the quarter, an 11% increase versus the fourth quarter of 2019. Something went wrong while loading Watchlist. Macys, Inc. anticipates positive momentum in 2022 supported by the Polaris initiatives and strong consumer demand. Q: Quarterly report, which is equivalent to the 10-Q file disclosed by the listed company to the SEC, where Q1, Q2, Q3, and Q4 are single quarterly reports with a span of 3 months; Q6 and Q9 are cumulative quarterly reports, and Q6 is 6 months , Q9 is 9 months. ET. Do not sell. This compares to diluted earnings per share of $1.81 and Adjusted diluted earnings per share of $2.91 in 2019. Important Information Regarding Non-GAAP Financial Measures. Macy's is also working on launching a digital marketplace where it can sell more third-party brands. Adjusted diluted earnings (loss) per share is reconciled to GAAP diluted earnings (loss) per share. Wait a little and get 2-3 times more. Macy's shares closed the day down about 5% amid a broader market selloff. At the same time, the company expects macro environment challenges such as inflation, supply chain pressures, labor shortages and potential COVID-19 variants. Improvement as a result of merchandise margin was largely due to benefits from pricing, promotion and inventory productivity enhanced by the Polaris strategy. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. Key to Macy's turnaround has been winning back customers who had left the department store chain over the past decade for rivals such as Nordstrom and big-box chains like Target, or to shop directly from brands like Nike. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The activation and return of customers to stores coupled with the continued growth in digital drove the strong sales performance during the quarter. Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows: Federal, state and local income tax expense, Federal, state and local income tax (benefit) expense, Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share, Income tax impact of certain items identified above, Investors - Mike McGuire Macys, Inc.s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com/investors.