THE WHAT? Macy’s has reported its results for the first quarter of fiscal 2023. Net sales dropped 7 percent versus the same period in 2022, to US$5 billion while diluted earnings per share came in at US$0.56, some way below the US$0.98 reported in Q12022.

THE DETAILS Macy’s eponymous retail brand saw comparable sales decrease 8.7 percent on an owned basis while Bloomingdales fared slightly better with sales dipping a more modest 3.9 percent. Bluemercury was the highlight, growing sales 4.3 percent thanks to strong performances in clinical and medical skin care and color cosmetics during the quarter.

The company is reducing its guidance for 2023, now predicting net sales of US$22.8 billion to US$23.2 billion and a 7.5 percent to 6 percent drop in comparable sales.

THE WHY? Jeff Gennette, Chairman and Chief Executive Officer of Macy’s, Inc, explains, “During the first quarter, we delivered a solid beat on our gross margin rate and bottom line expectations enabled by our disciplined teams, strength of our inventory management and operational efficiencies. We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories.

“We have moved quickly to take the appropriate actions to meet current consumer demand and manage our expenses. Our revised guidance reflects incremental clearance markdowns to address excess spring seasonal merchandise in the second quarter, along with adjustments to the category composition and inventory levels in the back half of the year. Supported by our solid foundation of financial health, we remain focused on strengthening our core business and advancing our five growth vectors – which we believe will drive sustainable and profitable sales growth in the future.”