Curious about Macys net worth and how they fare financially? At Ando Money, I aim to break down Macy’s finances, focusing on their revenue, operating costs, and key business segments.
In 2024, Macy’s faced significant challenges but managed to stay competitive in a tough retail landscape. Let’s dive into the numbers.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Macy’s |
| Full Name | Macy’s, Inc. |
| Website | macysinc.com |
| Industry | Retail |
| Traded as | NYSE: M |
| ISIN | US55616P1049 |
| Founded | 1858 |
| Founders | Rowland Hussey Macy |
| Country/Territory | United States |
| Headquarters | New York City, New York |
| Chief Executive Officer | Tony Spring |
| Number of Employees | 85,581 |
| Market Cap | $4.28 billion |
| Total Assets | $15.833 billion |
| Total Equity | $4.303 billion |
| Revenue | $10.096 billion (26 weeks ended August 2024) |
| Net Income | $150 million (Q2 2024) |
What is the Net Worth/Market Cap Of Macy’s in 2024?
As of October 2024, Macy’s has a market cap of $4.28 billion. This places the company as one of the significant players in the retail industry.
While Macy’s faces competition from many modern retailers, its consistent brand recognition keeps it in the market’s upper tier.
If you’re curious about how Macy’s compares with other entities in terms of market cap, here are a few notable names:
For more details on some of the wealthiest companies, visit our richest companies page.
Macy’s Financial Performance Overview
How Macy’s Generates Revenue
Macy’s generates revenue primarily through its retail operations, both in-store and online.
The company’s physical locations across the U.S., combined with its growing e-commerce presence, have made it a well-rounded player in the retail space.
In 2024, Macy’s faced a 3.8% decline in net sales compared to the previous year, bringing the figure to $4.937 billion for Q2.
Despite the decline, certain locations saw growth, with Macy’s “First 50” stores reporting positive sales growth, contributing to revenue stabilization.
Breakdown of Operating Costs
Macy’s operates in a highly competitive market, and controlling operating costs is crucial. In Q2 2024, Macy’s cost of sales accounted for 59.5% of net sales, a slight improvement from 61.9% in 2023.
Additionally, selling, general, and administrative (SG&A) expenses amounted to $1.973 billion, reflecting Macy’s focus on cost control while maintaining investments in customer experience.
Revenue Growth from Key Business Segments
Beyond its flagship stores, Macy’s owns Bloomingdale’s and Bluemercury, which also contribute to its revenue.
Bloomingdale’s saw a slight 0.2% drop in net sales during Q2, while Bluemercury reported a 1.7% increase. Macy’s continued growth in the e-commerce sector also boosted overall performance.
Macy’s Media Network, for instance, generated $34 million in revenue, an increase of $4 million compared to 2023.
Impact of Credit Card Revenue on Macy’s Finances
Macy’s credit card revenue forms an essential part of the company’s overall income. In Q2 2024, credit card revenue totaled $125 million, contributing 2.5% of the company’s net sales.
This is an increase of $5 million compared to the previous year. This revenue stream plays a significant role in Macy’s profitability, as it consistently contributes to the company’s bottom line.
Asset Sales and Real Estate Strategy
Macy’s has also boosted earnings through strategic real estate sales. In Q2 2024, Macy’s recorded $36 million in gains from real estate sales, compared to $4 million in 2023.
The company strategically sells underperforming properties to streamline operations and reduce overhead costs. Its real estate holdings remain a significant part of its long-term strategy for profitability.
Gross Margin Trends
The company’s gross margin improved in Q2 2024, reaching 40.5%, up from 38.1% the previous year. This increase was driven by reduced discounting, better inventory management, and investments in asset protection.
Macy’s strategy to shift toward cost accounting also played a role in expanding the gross margin.
Macy’s Strategic Investments and Financial Outlook
Macy’s has made several strategic investments, particularly in its digital infrastructure.
The company sees e-commerce as a key growth area, with digital sales making up a substantial portion of total revenue.
Looking ahead, Macy’s aims to maintain revenue growth by continuing to enhance its online platform and investing in customer experience.
The company projects $22.1 billion to $22.4 billion in net sales for the full year 2024, slightly adjusted from earlier estimates.
FAQs About Macy’s
What are Macy’s primary revenue streams?
Its primary revenue streams come from retail sales through its stores and e-commerce platforms. It also generates revenue through credit card sales and its Macy’s Media Network.
How did Macy’s perform in Q2 2024?
Macy’s reported $4.937 billion in net sales for Q2 2024, a 3.8% decrease from the previous year. However, the company saw growth in specific segments, such as Bluemercury.
What is Macy’s gross margin for 2024?
In Q2 2024, its gross margin improved to 40.5%, driven by reduced discounting and better inventory control.
How does Macy’s utilize its real estate for profit?
Its strategically sells underperforming real estate to streamline operations. In Q2 2024, the company earned $36 million from asset sales.
What investments has Macy’s made in 2024?
Its has invested heavily in its digital infrastructure to enhance its e-commerce platform and improve customer experience across both digital and physical locations.
Conclusion
Macy’s financial performance in 2024 showcases its resilience in a challenging market.
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