Macy’s, one of America’s oldest department store chains, has announced that it has reduced its full-year outlook for 2023, despite posting better than expected earnings results for Q1 2022. The company’s Non-GAAP EPS (Earnings Per Share) was $0.56, with a revenue of $4.98 billion. However, due to uncertainties and challenges ahead, Macy’s has lowered its revenue projections at a time when the pandemic still looms large over the retail industry.
The news dealt a significant blow to Macy’s stock, which hit a two-year low the day before earnings were released. The company’s shares were already struggling, having lost almost half their value since the start of the year.
Macy’s is only one of several brick-and-mortar retailers that has had to adapt to changing consumer behavior brought on by the pandemic. Stores that were already struggling pre-pandemic faced an even more difficult environment during the shutdowns. As foot traffic in shopping malls has decreased, stores have had to boost their online presence to stay relevant.
Macy’s management has reiterated its commitment to the company’s turnaround plan, which includes initiatives such as store closures, cost-cutting measures, and strengthening its e-commerce platform. The company has also invested in various store experiences, including a new Bath Shop featuring a curated assortment of products made in the USA.
With the pandemic still ongoing, it remains to be seen how the retail landscape will change in the years to come. However, Macy’s looks set to continue its efforts to adapt to the new normal and stay ahead of the curve.