People walk toward a Macy's store in Lewisville, Texas, the United States, on Jan. 9, 2021. (Photo by Dan Tian/Xinhua)
Macy's expects to realize 23.7-24.2 billion U.S. dollars of net sales revenues in fiscal 2023 starting Jan. 29, 2023, which is lower than 24.44 billion dollars in fiscal 2022 and 24.46 billion dollars in fiscal 2021.
NEW YORK, March 2 (Xinhua) -- U.S. department store Macy's, Inc. will see its decrease of profits and revenues extending into the 2023 fiscal year amid elevated uncertainty in the macroeconomic environment, according to a release by the company on Thursday.
Macy's expects to realize 23.7-24.2 billion U.S. dollars of net sales revenues in fiscal 2023 starting Jan. 29, 2023, which is lower than 24.44 billion dollars in fiscal 2022 and 24.46 billion dollars in fiscal 2021.
Meanwhile, Macy's expects to have 3.67-4.11 dollars of adjusted diluted earnings per share in fiscal 2023, substantially lower than 4.48 dollars in fiscal 2022 and 5.31 dollars in fiscal 2021.
"Macy's, Inc. anticipates that the heightened level of uncertainty within the macroeconomic environment will continue in 2023. The company is taking a prudent approach to its outlook, which reflects the potential differences in the severity and duration of macroeconomic headwinds, offset by how the business can respond," said the release.
Inflation and economic deceleration weighed on sales of general goods while the demand for higher-end products remained robust, according to data provided by Macy's.
Only 42.7 million active customers shopped the Macy's brand in fiscal 2022, down 4 percent year on year, according to Macy's.
People shop at Macy's Herald Square store during Black Friday in New York, the United States, Nov. 26, 2021. (Xinhua/Wang Ying)
Meanwhile, luxury retail brand Bloomingdale's and beauty brand Bluemercury, both of which are owned by Macy's, Inc., had the patronage of 4.1 million active customers and around 662,000 active customers in fiscal 2022, up 5 percent and 12 percent year on year, respectively.
"Looking ahead, we will continue to take a balanced approach to expense management and capital allocation," said Adrian Mitchell, chief financial officer of Macy's.
Still, Macy's guidance for fiscal 2023 was seen aggressive compared to peers, according to Zachary Warring, analyst with CFRA Research.
Macy's reported better-than-expected earnings in the quarter ended Jan. 28 despite material year-on-year decrease. The relative strength with Macy's earnings report lifted the company's stock price in the morning session on Thursday. ■
