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Highlights

  • In Q1FY25, M’s total operating revenue and net income declined by around 3.3% and 60%, respectively compared to pcp
  • Macy's announced a standard quarterly dividend of 17.37 cents per share, slated for payment on July 1, 2024
  • The company expects net sales to lie between USD 22.3 billion to USD 22.9 billion in FY25

Macy's, Inc. (NYSE: M) is a versatile retail corporation spanning multiple channels. It manages stores, mobile apps, and websites across three distinct brands: Macy's, Bluemercury and Bloomingdale's. These platforms offer a diverse array of products, from clothes and accessories for men, women, and children to home furnishings, cosmetics, and more. With a presence in 43 states, the District of Columbia, Puerto Rico, and Guam, Macy's, Inc. serves customers across a wide geographical spread. It has a market capitalization of USD 5.16bn.

In Q1FY25, the company’s total operating revenue declined by around 3.3% compared to pcp due to a dip in comparable sales. The decreased revenue led to a decline in net income by a notable 60%.

Recent business update

On May 16, 2024, Macy's board of directors announced a standard quarterly dividend of 17.37 cents per share. This dividend is set to be distributed on July 1, 2024, to shareholders recorded as of the close of business on June 14, 2024.

Company outlook

As of May 21, 2024, the company expects net sales ranging between USD 22.3 billion to USD 22.9 billion in FY25, compared to the previous guidance of USD 22.2 billion to USD 22.9 billion issued on February 27, 2024.

The comparable owned-plus-licensed-plus-marketplace sales change is expected to range from a decline of around 1.0% to an increase of 1.5% versus 2023, adjusted from the earlier forecast of a decline of approximately 1.5% to an increase of 1.5%.

Adjusted diluted earnings per share is expected to lie between USD 2.55 and USD 2.90, up from the previous range of USD 2.45 to USD 2.85.

Top 10 shareholders

The top 10 shareholders of Macy together hold ~43.27% of the total stake in the firm. The largest shareholders are The Vanguard Group, Inc., holding approximately 12.31% of the stake, and BlackRock Institutional Trust Company, N.A., with approximately 7.96% stake.

Stock performance

Over the last three months, M's share price has seen a 9.14% correction, while it has also experienced a 2.58% correction over the past six months. Currently, the stock is leaning towards the upper band of its 52-week high of USD 22.10 and 52-week low of USD 10.54.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 12, 2024. The reference data in this report has been partly sourced from EODHD/Others.