Macy’s Q1 net sales fell 6.8% year over year to $5 billion, with brick-and-mortar sales down 6% and e-commerce down 8%. Overall comps, including concessions, fell 7.9%. By brand, Macy’s comps fell 7.9%, Bloomingdale’s comps fell 4.3% and Bluemercury comps rose 4.3%.
Merchandise inventory was down 7% year over year and 16% versus 2019, “reflecting ongoing disciplined inventory management,” per a company press release. Gross margin rose to 40% from 39.6% last year and 38.2% in 2019. Net income fell 45.8% to $155 million.
Citing consumer pressures, the department store slashed its guidance. Macy’s now expects net sales to reach $22.8 billion to $23.2 billion, down from its previous expectation for $23.7 billion to $24.2 billion, and comparable sales to fall 6% to 7.5%, worse than its previous expectation for a 2% to 4% decline.
Source: RetailDive
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