Macy’s (M) same-store sales grew 2.0% on an owned-plus-licensed basis in fiscal 2018, which ended on February 2. This growth came after a decline in same-store sales for three straight years as Macy’s struggled to thrive in a highly competitive retail market, where online retailers and off-price retailers were gradually stealing market share from Macy’s and other department stores. Macy’s net sales grew 0.1% to about $25.0 billion in fiscal 2018.
Macy’s sales beat analysts’ forecasts in three of the four quarters of fiscal 2018. In the fourth quarter of fiscal 2018, Macy’s sales fell 2.5% to $8.46 billion but managed to beat analysts’ estimate of $8.45 billion. Macy’s fourth-quarter same-store sales grew 0.7% on an owned-plus-licensed basis.
Analysts expect Macy’s sales to decline 0.4% to $5.52 billion in the first quarter of fiscal 2019, which ended on May 4. Analysts expect Macy’s sales to remain flat at about $25 billion in full-year fiscal 2019.
Macy’s is trying to boost its sales by further strengthening its online channels, expanding its presence in off-price retailing by opening at least 45 additional Backstage locations in fiscal 2019. Macy’s operated 172 Backstage locations as of the end of fiscal 2018. The company also plans to expand the initiatives under its Growth50 program to 100 additional stores. Macy’s is also keen to enhance its sales in five merchandise categories: dresses, big-ticket fine jewelry, men’s tailored clothing, women’s shoes, and beauty.
Macy’s expects its fiscal 2019 same-store sales growth in the range of 0.0%–1.0% on an owned-plus-licensed basis. The company expects its overall sales to be flat in fiscal 2019.