American retailer Macy's Q3 FY22 net sales down 3.9% to $5.2 bn

Macy’s consolidated digital sales decreased 9 per cent versus the third quarter of 2021, while the brick-and-mortar sales decreased 1 per cent. On an owned basis, comparable sales were down 3.1 per cent and 2.7 per cent down on an owned-plus-licensed basis in Q3 FY22.

The company’s diluted earnings per share were $0.39 and adjusted diluted earnings per share were $0.52, compared to diluted earnings per share of $0.76 and adjusted diluted earnings per share of $1.23 in the third quarter of 2021.

Net income in Q3 FY22 was $108 million, compared to $239 million in Q3 FY21, while the EBITDA was $392 million, compared to $757 million, the company said in a media release.

From the company's nameplates’ perspective, Macy’s Q3 FY22 comparable sales were down 4.4 per cent on an owned basis and down 4 per cent on an owned-plus-licensed basis. Additionally, 43.6 million active customers shopped the Macy’s brand, on a trailing 12-month basis, a 2 per cent increase compared to the prior year. Star Rewards programme members made up approximately 70 per cent of the total Macy's brand owned-plus-licensed sales on a trailing 12-month basis, up approximately 5 percentage points versus the prior year.

In Q3 FY22, Bloomingdale’s comparable sales on an owned basis were up 5.3 per cent and on an owned-plus-licensed basis were up 4.1 per cent. Furthermore, 4.1 million active customers shopped the Bloomingdale’s brand, on a trailing 12-month basis, a 9 per cent increase over the prior year.

Macy’s gross margin for Q3 FY22 was 38.7 per cent, down from 41.0 per cent in the third quarter of 2021. Merchandise margin decline was driven by a year-over-year increase in promotional and permanent markdowns within the Macy’s brand, as the company sold through slower moving categories. Delivery expense as a per cent of net sales was relatively consistent with the prior year. Higher fuel costs more than offset the impact of a 2-percentage point decline in digital penetration and reductions in cost-per-package.

In Q3 FY22, selling, general, and administrative expense was $2.1 billion, a $84 million increase, compared to Q3 FY21.

For the whole financial year 2022, Macy’s Inc expects the net sales to be between $24,340 million – $24,580 million, while the adjusted EBITDA as a per cent of sales is estimated to be around 10.5 per cent. Furthermore, the company’s adjusted diluted earnings per share is projected to be around $4.07 – $4.27.

Fibre2Fashion News Desk (DP)