Core Insights - Macy's, Inc. reported first-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although both metrics declined compared to the previous year [1][3] Financial Performance - Adjusted earnings were 16 cents per share, surpassing the Zacks Consensus Estimate of 14 cents, but down 40.7% from 27 cents in the prior year [3] - Net sales reached $4,599 million, exceeding the consensus estimate of $4,458 million, but decreased by 5.1% year over year [3] - Comparable sales fell by 2% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis compared to the previous year [3] Brand Performance - Macy's brand comps declined by 2.9% on an owned basis and 2.1% on an owned-plus-licensed-plus-marketplace basis [6] - Bloomingdale's brand saw a 3% increase in comps on an owned basis and 3.8% on an owned-plus-licensed-plus-marketplace basis [6] - Bluemercury brand experienced a 1.5% increase in comps on an owned basis, marking the 17th consecutive quarter of growth [6] Margins and Expenses - Gross margin remained flat at 39.2%, with improved merchandise margins offset by increased delivery expenses [7] - Selling, general and administrative (SG&A) expenses were $1.91 billion, up 0.1% year over year, with SG&A as a percentage of total revenues rising 170 basis points to 39.9% [8][9] - Adjusted EBITDA was $324 million, down 11% from $364 million in the prior year, with an adjusted EBITDA margin of 6.8%, down 50 basis points year over year [9] Cash and Equity Overview - The company ended the quarter with cash and cash equivalents of $932 million and long-term debt of $2.77 billion [10] - Merchandise inventories declined by 0.5% year over year [10] - The company repurchased 8.7 million shares for $101 million, with $1.3 billion remaining under its $2 billion share repurchase authorization [11] Guidance for Fiscal 2025 - Macy's updated its annual guidance, expecting net sales between $21 billion and $21.4 billion for fiscal 2025 [14] - Comparable owned-plus-licensed-plus-marketplace sales are projected to decline by 0.5-2% year over year [15] - Adjusted earnings per share are expected to be between $1.60 and $2.00, down from the previous estimate of $2.05-$2.25 [16]

The restaurant industry continues to navigate a dynamic environment shaped by ongoing digital innovation, evolving consumer expectations, and broader economic pressures. Although companies are exposed to tariff-related uncertainties, emphasis on alternative raw material solutions, compelling product offerings, and value propositions is likely to have aided the respective companies' performance in the first quarter. Companies in the broader Retail-Wholesale sector, such as Potbelly Corporation (PBPB) , Dine ...