Macy’s is out with its Q4 report and seems quite happy over its performance.
Jeff Gennette, CEO of the American fashion retailer, has said that owing to good holiday sales and efforts to cut inventories, Macy’s has just seen its maiden profitable quarter in a year.
The revenue for the fourth quarter, which ended on 30 January 2021, was US $ 6.78 billion, which is better than analysts’ prediction of US $ 6.5 billion.
The net income too fell from US $ 340 million to US $ 160 million. Excluding one-time charges, Macy’s earned 80 cents every share, which was yet again better than the predicted 12 cents for each share.
The physical store sales have gone down and it certainly isn’t going to improve soon. Macy’s too has, reportedly, lost lot of its sales to online giants like Amazon.
That’s expected considering people still prefer to buy online. In fact, the company saw its Q4 online sales jump by 21 per cent.
Macy’s e-commerce sales accounted for 44 per cent of its net sales. Notably, the retailer saw as many as 7 million new customers during the quarter with many under the age of 40.
Apparel sales, in particular, fell by 33 per cent in Q4 and that’s worrying for Macy’s!
More on poor apparel sales, Neil Saunders, MD, GlobalData Retail, said “Given Macy’s focus on clothing, if it can’t make this part of its business work properly then its long term trajectory does not look promising.”
On the whole, Macy seems to be quite pleased over its fourth quarter performance and believes 2021 to be a year of recovery and rebuilding.