Macy's(M) - 2026 Q1 - Quarterly Report

Financial Performance - Net sales for the first quarter of 2025 decreased by $247 million, or 5.1$171 million and an operating loss of $361 million for the 13 weeks ended May 3, 2025[110]. - Comparable sales decreased by 2.0$324 million, compared to $364 million for the same period in 2024[117]. - The Company reported a net loss of$48 million for the 13 weeks ended May 3, 2025[110]. Expenses and Margins - Gross margin for the first quarter of 2025 was $1,804 million, maintaining a gross margin rate of 39.2$2 million, or 0.1%, in the first quarter of 2025 compared to the first quarter of 2024[87]. - The company incurred impairment, restructuring, and other costs amounting to $7 million, which impacted earnings by$0.03 per share[120]. - Losses on early retirement of debt were recorded at $3 million, with no impact on earnings per share for the previous year[120]. - The income tax impact of certain items was a reduction of$2 million, affecting earnings by $0.01 per share[120]. Cash and Investments - The Company ended the first quarter of 2025 with a cash and cash equivalents balance of$932 million, an increase of $56 million from$876 million at the end of the first quarter of 2024[95]. - The Company’s investments in subsidiaries amounted to $9,914 million as of May 3, 2025[108]. Shareholder Returns and Debt Management - The Company paid dividends totaling$51 million in 2025, compared to $48 million in 2024[99]. - The Board of Directors authorized a new$2,000 million share repurchase program, with $1,274 million remaining available as of May 3, 2025[100]. - Macy's amended its asset-based credit facility, reducing it from$3,000 million to $2,100 million and extending the maturity date to April 2030, providing access to committed liquidity for the next five years[101]. - The total aggregate principal amount of senior unsecured notes outstanding was$2,785 million as of May 3, 2025[107]. - The Company had no outstanding borrowings under the ABL Credit Facility as of May 3, 2025[105]. Tax and Effective Rate - The effective tax rate for the first quarter of 2025 was 44.1%, compared to 36.7% for the first quarter of 2024[91]. - For the 13 weeks ended May 3, 2025, the net income per share was $0.13, down from$0.22 for the same period in 2024, representing a decrease of 40.91%[120]. - The adjusted net income per share, excluding certain items, was $0.16 for the current period, compared to$0.27 in the prior year, reflecting a decline of 40.74%[120]. Market Risk - There have been no material changes to the company's market risk as described in the 2024 10-K filing[121].