HomeMarket NewsMacy's soars after margins, inventory management improves in Q3

Macy's soars after margins, inventory management improves in Q3

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Macyโ€™s Rises to the Skies with Strong Q3 Performance
Strong Consumer Sales Number In April Hint At Wider Economic Growth

Drew Angerer/Getty Images News

Macyโ€™s (NYSE:M) took off like a rocket in early trading on Thursday following stellar Q3 results and optimistic guidance.

Q3 saw a 7% year-over-year drop in sales to $5B, with both brick-and-mortar and digital sales showing a similar decline. Despite this, the gross margin rate for the quarter soared to 40.3% versus 38.7% a year ago. In addition, merchandise margin improved by 110 basis points, owing to lower permanent markdowns within the Macyโ€™s brand and improved freight expense.

Macyโ€™s (M) also showcased its prowess by demonstrating a significant 6% year-over-year reduction in merchandise inventory levels and a substantial 17% decrease compared to 2019. The department store stated that this reflects ongoing disciplined inventory management.

Heading into the future, Macyโ€™s (M) anticipates FY24 revenue of $22.9B to $23.2B versus the consensus of $23.0B, and EPS of $2.88 to $3.13 compared to the consensus of $2.76.

Macyโ€™s CEO, Jeff Gennette, expressed the companyโ€™s readiness to lead the gift-giving market by offering exclusive products. He highlighted, โ€œWe have refined our gift assortment, simplified our promotions, and improved our shopping experience.โ€

Remarkably, in premarket trading, Macyโ€™s (M) surged by an astounding 12.13% to $14.14, as opposed to the 52-week trading range of $10.54 to $25.12.

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