“We can respond to what’s trending within a week,” Gennette said. “The buying is more conservative and there’s built-in liquidity to respond quicker” to trends, categories and brands that consumers are shopping. It involves purchasing merchandise upfront at lower costs and reducing markdown allowances. Part of Gennette’s upbeat outlook stems from what’s been a cultural shift in Macy’s buying to a “net cost model” that began three years ago. Easier comparisons to 2023 should help paint a brighter picture in 2024.Įarnings per share this year are seen at $3.67 to $4.11. Macy’s forecasts that in 2023, net sales will be down 1 to 3 percent from 2022, to $23.7 billion to $24.2 billion, but are expected to turn positive in 2024, as Gennette said. Gennette said during the last holiday season consumers pulled back on self-purchasing but there were spikes in the business during key days, such as Black Friday and Cyber Monday, as well as during the week before Christmas. RELATED: Target Tops Q4 Sales Estimates Despite Weakness in Discretionary It should be noted that Walmart and Target, which unlike Macy’s sell groceries and lower-priced merchandise and groceries, reported sales gains for the fourth quarter, as consumers shift some dollars more to non-discretionary items. Comparable sales were down 2.7 percent compared to last year’s quarter, but up 3.3 percent compared to the fourth quarter of 2019. Net sales were down 4.6 percent to $8.3 billion versus $8.67 billion in the fourth quarter of 2021, and were down 0.9 percent from the fourth quarter of 2019. Diluted earnings per share were $1.09 in the fourth quarter of 2019. Net income in the quarter dropped to $508 million, or $1.83 a diluted share, from $742 million, or $2.44 a share in the 2021 quarter. In addition, Macy’s most recent top- and bottom-line figures compared more favorably to the 2019 pre-pandemic period. was able to navigate through a “volatile” 2022, reporting fourth-quarter top- and bottom-line declines compared to last year, though the figures beat Wall Street estimates, sparking an 11 percent spike in the stock price to $22.68 by midday. Jeff Gennette Photo courtesy of Sunshine Sachs Morgan & Lylis
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