US retailer Macy's posts gross margin of 38.9% in Q2 FY22

Comparable sales were down by 1.5 per cent on an owned basis and down by 1.6 per cent on an owned-plus-licensed basis; up 4.3 per cent and 4.4 per cent, respectively, versus the second quarter of 2019. Digital sales decreased by 5 per cent year-over-year while increasing 37 per cent versus the second quarter of 2019. Digital penetration was 30 per cent of net sales in the second quarter of 2022, a 2-percentage point decline from the second quarter of 2021, but 8-percentage points higher than the second quarter of 2019, Macy’s said in a press release.

“During the second quarter, we delivered solid results, despite the challenging environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “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 behaviors. 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."

“Over the past two years, our Polaris strategy has made us faster and more agile, which has been essential to navigate rapidly changing consumer trends and macro conditions. We expect to come out of this uncertain period in a strong position with a healthy balance sheet, new capabilities and a talented team ready to capture renewed demand,” Gennette continued.

The company's lower outlook for the remainder of the year incorporates the risk it sees in the continued deterioration of consumer discretionary spending in some of its categories and the level of inventory within the industry, as well as risks associated with a more pronounced macro downturn. This outlook reflects a careful view of the impacts of the pressures faced by the consumer and those placed on the business given the weakening macro environment.

Fibre2Fashion News Desk (RR)