3rd Quarter Earnings for Macy’s Set the Tone for Holiday Shopping
Macy’s (M) just published its third quarter earnings report for 2024, missing estimates on earnings per share and experienced a drop in sales compared to the same time last year.
That is bad news for the department store heading into the last stretch of the holiday shopping season. With Christmas less than two weeks away, Macy’s needs to do really well in a short period of time to recoup its losses and look good for shareholders.
The company’s stock fell 0.9% on Thursday after the report came out. The stock price has climbed in the last month, though, from $15.57 to $16.41. Over the last three months, the growth has been even better, but not significantly so. 2024 has been an overall down year for the department chain. Their stock dropped nearly 17% this year so far, but the holiday season could turn things around.
Macy’s Takes a Hit
Before the quarterly earnings released, Macy’s was looking good. They delayed the report, and market analysts were calling Macy’s a good investment stock. They were ranked 7th overall among department store stocks, and the company owns luxury retailers Bloomingdale’s and Bluemercury. Both of those stocks grew last year, but Macy’s is still down overall.
Even the mild success of its luxury brands is not enough to save the department store from looking bad after a less than hopeful third quarter report. Earnings per share on stock were estimated to be $0.07 but came in at $0.04. That was the most damning part of the quarterly report, but the fact that revenue is down compared to the same time last year does not help either.
Macy’s showed a comparable sales drop of 2.2%, while both Bloomingdale’s and Bluemercury were up by more than 3% each.
As a result of the poor year, Macy’s anticipates closing about 65 stores this year. That does not have to be the death knell for the company. It could actually be a smart move that pays off with less overhead and more profit per store, resulting in a much improved profit margin for the next quarterly report.
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