Macy’s Q1 Net Sales Rise 1.8% to $4.7B; EPS $0.13 Beats Forecast
M•Macy's net sales rose 1.8% to $4.7 billion in Q1, with comparable sales up 3% and adjusted EPS of $0.13 beating guidance. Operating cash flow swung to a $292 million inflow and free cash flow reached $140 million, while Bloomingdale’s comps surged 10.2%.
1. Q1 Financial Results
Macy's reported net sales of $4.7 billion, up 1.8%, with comparable sales rising 3% and adjusted EPS of $0.13 beating guidance. Gross margin narrowed to 38.9% from 39.2% last year, SG&A expenses held flat at $1.95 billion, and adjusted EBITDA reached $290 million (5.9% of revenue).
2. Segment Performance
Bloomingdale’s comparable sales climbed 10.2% to a record high, while Blue Mercury sales grew 6.4% and reimagined Macy’s locations delivered a 2.4% comp increase. However, the home category, particularly furniture, and the plus-size business showed softness in demand.
3. Cash Flow, Balance Sheet, and Returns
Operating cash flow swung to a $292 million inflow from a $64 million outflow a year ago, and free cash flow turned positive at $140 million versus a $203 million outflow. The company held $1.3 billion in cash on the balance sheet and returned $100 million to shareholders through $50 million in dividends and $50 million in buybacks.
4. Outlook and Risks
Management raised full-year comparable sales guidance after Q1 outperformance and cited cautious optimism for Q2 performance. The company warned of macroeconomic and geopolitical uncertainties, higher fuel costs and a competitive promotional environment, with media network revenue down 5% year over year.
