Macy’s reports preliminary Q3 highlights

Macy’s (M) First 50 locations delivered third consecutive quarter of comparable sales growth, up 1.9%. Bloomingdale’s reported comparable sales growth of owned and owned-plus-licensed-plus-marketplace up 1.0% and 3.2%, respectively. Bluemercury reported comparable sales growth of 3.3%. Asset sale gains of $66M were ahead of expectations. Preliminary Balance Sheet and Liquidity: Merchandise inventories increased 3.9% year-over-year, reflecting improved inventory composition and supply chain efficiencies. The conversion to cost accounting was estimated to account for approximately half of the increase from the prior year. Entering the fourth quarter, the company believes it has the appropriate level of newness heading into the holiday season. The company ended the third quarter of 2024 with cash and cash equivalents of $315M and $2.77B of available borrowing capacity under its asset-based credit facility reflecting current borrowings and letters of credit. Total debt of $2.865B included $86M of short-term borrowings under the company’s asset-based credit facility and no material long-term debt maturities until 2027. The company voluntarily retired $220M of debt during the quarter through a previously disclosed tender offer.