Macy's, Inc. reported a decline in financial performance for the first quarter of fiscal 2025, with net sales totaling $4.6 billion, a decrease of 5.1% from $4.8 billion in the same period last year. The company's total revenue also fell to $4.8 billion from $5.0 billion, reflecting a challenging retail environment. Net income dropped to $38 million, or $0.14 per share, compared to $62 million, or $0.22 per share, in the prior year. The decline in sales was attributed primarily to the closure of 64 non-go-forward locations, which accounted for approximately $170 million of the revenue decrease.
In terms of operational metrics, Macy's comparable sales decreased by 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis. The company's flagship Macy's brand experienced a 2.9% decline in comparable sales, while Bloomingdale's saw a 3.0% increase, and Bluemercury reported a 1.5% rise. Digital sales continued to play a significant role, comprising 33% of total net sales, up from 32% in the previous year. The company also noted improvements in customer engagement, with net promoter scores for Macy's improving year-over-year.
Strategically, Macy's is in the second year of its "A Bold New Chapter" initiative, which focuses on enhancing the customer experience and optimizing store locations. The company has reimagined 125 locations, which have outperformed the rest of the fleet, and introduced new contemporary apparel brands that have been well-received. Additionally, the company is simplifying its operations and investing in digital capabilities to drive long-term growth. The first quarter also saw a $37 million increase in credit card revenues, reflecting a strong credit portfolio and effective management of net credit card losses.
Macy's balance sheet as of May 3, 2025, showed total assets of $16.1 billion, a slight decrease from $16.4 billion at the end of the previous quarter. The company maintained a cash and cash equivalents balance of $932 million, up from $876 million a year earlier. The company has access to a $2.1 billion asset-based credit facility, which was amended in April 2025 to extend its maturity to April 2030. Looking ahead, Macy's expects to continue focusing on its strategic initiatives while navigating the current retail landscape, with plans to maintain liquidity and invest in growth opportunities.
About Macy's, Inc.
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