Macy's, Inc. (NYSE:M) Q4 2024 Earnings Conference Call March 6, 2025 8:00 AM ET Company Participants Pamela Quintiliano - Vice President, Investor Relations Tony Spring - Chairman & Chief Executive Officer Adrian Mitchell - Chief Operating Officer & Chief Financial Officer Conference Call Participants Matthew Boss - JPMorgan Brooke Roach - Goldman Sachs Ashley Helgans - Jefferies Oliver Chen - TD Cowen Dana Telsey - Telsey Advisory Group Tracy Kogan - Citigroup Operator Greetings, and welcome to the Macy's, ...

Macy's (M) came out with quarterly earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.13%. A quarter ago, it was expected that this department store operator would post earnings of $0.07 per share when it actually produced earnings of $0.04, delivering a surprise of -42.86%.Over the last four quarters, the c ...

4Q24 Earnings March 6, 2025 Safe Harbor Statement All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this prese ...

Macy’s stock was down 3.1% in premarket trading on Thursday after the retailer issued a profit warning as it faces “external uncertainties” amid turnaround efforts.Macy’s M said its lower-than-expected earnings expectations for the first quarter and full year reflect an unclear immediate future for customers and its core nameplate retail brands including Macy’s, Bloomingdale’s and Bluemercury. ...

Sales Performance - Macy's, Inc. reported fourth quarter net sales of $7.8 billion, a decrease of 4.3% compared to the fourth quarter of 2023, with comparable sales down 1.1% on an owned basis[4]. - The company's go-forward business comparable sales were down 0.7% on an owned basis, while the First 50 locations achieved a 0.8% increase in comparable sales on an owned basis[5]. - For fiscal year 2024, net sales decreased 3.5% to $22.3 billion, with comparable sales down 2.0% on an owned basis[9]. - Net sales for the 13 weeks ended February 1, 2025, were $7,768 million, a decrease from $8,120 million for the 14 weeks ended February 3, 2024[29]. - Total revenue for the 52 weeks ended February 1, 2025, was $23,006 million, compared to $23,866 million for the 53 weeks ended February 3, 2024, reflecting a decline of 3.6%[32]. - Comparable sales decreased by 1.1% on an owned basis for the 13 weeks ended February 1, 2025, with a decrease of 2.0% for the 52 weeks[48][49]. - The company reported a decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis of 0.2% for the 13 weeks ended February 1, 2025[48]. Financial Performance - Macy's ended fiscal year 2024 with $1.3 billion in cash, generating nearly $1.3 billion of operating cash flow and $679 million of free cash flow[5]. - Net income for the 52 weeks ended February 1, 2025, was $582 million, a significant increase from $45 million for the 53 weeks ended February 3, 2024[37]. - Basic earnings per share for the 52 weeks ended February 1, 2025, were $2.10, compared to $0.16 for the previous year[32]. - Adjusted net income for the 52 weeks ended February 1, 2025, was $745 million, with adjusted diluted earnings per share of $2.64[54]. - Free cash flow for the 52 weeks ended February 1, 2025, was $679 million, reflecting ongoing cash generation available for investments[55]. - Adjusted EBITDA for the 13 weeks ended February 1, 2025, was $903 million, compared to $1,091 million for the 14 weeks ended February 3, 2024[54]. Margins and Expenses - The gross margin rate for fiscal year 2024 was 38.4%, remaining flat compared to the previous year[10]. - SG&A expenses for fiscal year 2024 were $8.3 billion, a decrease of $45 million, but as a percentage of total revenue, it increased to 36.2% due to lower total revenue[10]. - Gross margin for the 52 weeks ended February 1, 2025, was $8,553 million, representing 38.4% of total revenue, consistent with the previous year[32]. - The company reported a gross margin of $2,777 million, or 35.7%, for the 13 weeks ended February 1, 2025, down from $2,967 million, or 36.5%, for the 14 weeks ended February 3, 2024[29]. - Other revenue for the 52 weeks ended February 1, 2025, was $713 million, accounting for 3.2% of net sales, compared to $774 million, or 3.4%, the previous year[39]. Future Guidance - Fiscal year 2025 guidance includes expected net sales of $21.0 billion to $21.4 billion, with comparable owned-plus-licensed-plus-marketplace sales projected to decline by approximately 2.0% to 0.5%[19]. - Adjusted diluted earnings per share for fiscal year 2025 is expected to be between $2.05 and $2.25[19]. Cash Flow and Assets - Cash flows from operating activities for the 52 weeks ended February 1, 2025, were $1,278 million, slightly down from $1,305 million for the previous year[37]. - Total assets as of February 1, 2025, were $16,402 million, an increase from $16,246 million as of February 3, 2024[34]. - Current liabilities as of February 1, 2025, totaled $4,524 million, compared to $4,532 million the previous year[34]. Other Insights - The company emphasizes that non-GAAP financial measures should be viewed as supplemental to GAAP results, as they provide additional insights into operational performance[45]. - Macy's Media Network revenue increased by 6.7% to $64 million, reflecting growth in the number of advertisers and campaign counts[12]. - The impact of departments licensed to third parties and marketplace sales contributed positively with an increase of 1.3% for the 13 weeks ended February 1, 2025[48].

Core Viewpoint - Macy's is experiencing mixed results as it navigates a turnaround under CEO Tony Spring, with pressure from activist investors seeking to take the company private [1][10]. Financial Performance - Comparable sales for Macy's during the holiday quarter decreased by 1.1%, while comparable sales across owned and licensed businesses, plus online marketplace, increased by 0.2%, marking the highest growth since Q1 2022 [2]. - The "First 50" locations, which are prioritized in the turnaround plan, reported a 0.8% increase in comparable sales, showing positive performance for four consecutive quarters [3]. - For fiscal 2025, Macy's anticipates adjusted earnings per share between $2.05 and $2.25, and sales between $21 billion and $21.4 billion, which are below Wall Street expectations of $2.31 per share and $21.8 billion in sales [4]. - The reported net income for the fiscal fourth quarter was $342 million, or $1.21 per share, compared to a loss of $128 million, or a loss of 47 cents per share, a year earlier [4]. - Total sales fell to $7.77 billion, down approximately 4% from $8.12 billion a year prior [5]. Strategic Initiatives - CEO Spring has initiated a plan involving the closure of 150 stores and investment in better-performing locations to address longstanding issues [7]. - The company is focusing on enhancing staffing, merchandising, and visual presentation in the 50 prioritized locations, which have shown better performance than the rest of the chain [8]. - After the store closures, Macy's will retain about 350 locations, and extending the successful strategy to the broader chain will require time and capital [9]. Activist Investor Influence - Activist investor Barington Capital has taken a position in Macy's, advocating for cost-cutting measures, potential sales of luxury brands, and a review of the real estate portfolio [10]. - There is skepticism regarding the motivations of Barington and other activist investors, with concerns that they may prioritize short-term profits over long-term revitalization efforts [11]. Shareholder Returns - Macy's announced plans to resume share buybacks under a remaining $1.4 billion authorization, contingent on market conditions [13]. - The company aims to enhance customer experience, operational excellence, and maintain healthy free cash flow while returning capital to shareholders through buybacks and dividends [13].

Wall Street analysts forecast that Macy's (M) will report quarterly earnings of $1.55 per share in its upcoming release, pointing to a year-over-year decline of 36.7%. It is anticipated that revenues will amount to $7.78 billion, exhibiting a decline of 4.2% compared to the year-ago quarter.Over the last 30 days, there has been a downward revision of 2.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

Macy's (M) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended January 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on March 6. On the oth ...

Macy's (M) closed the latest trading day at $14.78, indicating a +0.75% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.27%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw an increase of 0.03%.The the stock of department store operator has risen by 4.64% in the past month, lagging the Retail-Wholesale sector's gain of 8.91% and overreaching the S&P 500's gain of 4.27%.The investment community will be closely monitoring the per ...

Core Points - Myriad Uranium Corp. has issued 612,164 common shares to FirstAmerican Energy Fuels Ltd. as part of a property option agreement for the Red Basin Uranium Project in New Mexico, covering approximately 1,776 acres [1][2] - The shares were issued at a deemed price of approximately C$0.408 per share, valuing the transaction at C$250,000 based on a 10-day VWAP [2] - Myriad's final obligation to earn a 100% interest in the Project requires conducting a geophysics survey by January 30, 2026 [3] Company Overview - Myriad Uranium Corp. is a uranium exploration company with a 75% earnable interest in the Copper Mountain Uranium Project in Wyoming, having already earned a 50% interest [4] - The Copper Mountain Project has historical uranium deposits and mines, including the Arrowhead Mine, which produced 500,000 lbs of eU3O8 [4] - A recent 34-hole drill program at Copper Mountain encountered significant high-grade uranium mineralization, exceeding expectations and confirming historical exploration results [4]