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Macy's, Inc. (M+1.41%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $4,742 million from $4,860 million in the same quarter the previous year. The decrease is attributed to ongoing macroeconomic conditions and weaker performance in certain Macy's locations and digital channels.
Cost of sales for the quarter was $2,864 million, representing 60.4% of net sales, compared to 59.8% in the same quarter of the previous year. The gross margin rate decreased by 60 basis points, reflecting changes in inventory valuation methods and product mix.
Selling, general, and administrative expenses increased to $2,064 million from $2,040 million, primarily due to strategic customer-facing investments.
The company reported a net income of $28 million for the quarter, compared to $41 million in the previous year. Basic and diluted earnings per share were both $0.10, down from $0.15 in the previous year.
Macy's recorded gains on the sale of real estate amounting to $66 million, as part of its strategy to monetize non-go-forward assets.
Net cash used in operating activities was $30 million, a shift from $158 million provided by operating activities in the previous year. This change was driven by lower earnings and non-cash adjustments.
The company did not repurchase any shares of its common stock during the quarter. As of November 2, 2024, $1,375 million remained available under the company's share repurchase authorization.
Macy's continues to focus on its 'Bold New Chapter' strategy, aiming to strengthen its brand, accelerate luxury growth, and simplify operations. The strategy includes closing underperforming stores and investing in digital and small-format stores.
The filing also details a material weakness in internal controls over financial reporting, identified during the preparation of the financial statements for the quarter. The weakness was related to manual journal entries and reconciliation of related accrued liabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Macy's, Inc. quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.