Macy's (M, Financial) released its latest holiday season data ahead of the ICR Conference in Orlando, Florida. The stock experienced a pre-market decline due to fourth-quarter guidance falling short of market expectations.
The department store reported that its forward-looking business has achieved comparable sales growth so far this quarter. The top 50 stores and luxury brands Bloomingdale's and Bluemercury continued to show positive sales trends. Additionally, Macy's digital channels also saw comparable sales growth.
However, overall comparable sales for the quarter have remained flat. Performance from stores outside the top 50, including underperforming locations, fell below expectations, registering negative comparable sales growth.
For its earnings outlook, Macy's anticipates an adjusted diluted EPS of $1.40 to $1.65 for the fourth quarter, consistent with prior forecasts. The midpoint of $1.525 is below the market's expectation of $1.57. Net sales are expected to slightly underperform the previously projected range of $7.8 billion to $8 billion, with market expectations at $7.83 billion.
Macy's CEO Tony Spring expressed optimism about the company's "Bold New Chapter" strategy, which is driving continuous comparable sales growth. Given the positive response from the top 50 stores, Macy's plans to extend this strategy to an additional 75 stores in fiscal year 2025.
Macy's will announce its fourth-quarter and full-year fiscal 2024 earnings in early March.
