Macy's Q4 earnings: future outlook disappoints

Core Viewpoint - Macy's Inc reported better-than-expected earnings for its fourth quarter but is experiencing a decline in stock price due to muted future guidance and concerns from shareholders [1][2]. Financial Performance - Macy's reported a net loss of $71 million, translating to a loss of 26 cents per share, compared to a net income of $508 million or $1.83 per share in the previous year [3]. - Adjusted earnings per share (EPS) for the quarter were $2.45, while the consensus estimate was $1.96 per share [3]. - Revenue decreased by 1.7% year-over-year to $8.1 billion, slightly below the expected $8.15 billion [3]. - Gross margin improved by 340 basis points to 37.5% in Q4 [3]. Future Guidance - For fiscal 2024, Macy's forecasts revenue to fall between $22.2 billion and $22.9 billion, which is lower than analysts' expectations of $2.77 billion [2]. - The company anticipates adjusted EPS of up to $2.85 for the first quarter [2]. Strategic Outlook - CEO Tony Spring emphasized the company's strategy, "A Bold New Chapter," aimed at modernizing Macy's and generating meaningful value for shareholders in the future [2]. - The company ended financial 2023 with inventory up 2.0% year-over-year, indicating a focus on inventory management [3].