What: Macy’s, beating expectations across several fronts, saw big fourth-quarter gains on the top and bottom lines, and increased its dividend.

Why it is important: The good Q4 results allow the retailer to stick to its Polaris strategy rather than separating its dot-com and brick-and-mortar stores into separate businesses. It involves growing digital, private label offerings and small-format stores Market by Macy’s and Bloomie’s.

For the quarter ended Jan. 29, net income rose to $742 million from $160 million in the year-ago period. Operating income rose to $1.02 billion, or 11.7% of sales, from $401 million, or 5.9% of sales, in the same period a year ago.

Net sales rose to $8.67 billion from $6.78 billion. Comparable sales rose 27.8% in the last quarter from the year-ago quarter, and 6.1% from the 2019 quarter.

For all of last year, Macy’s Inc. generated $1.43 billion in net income, versus a loss of $3.94 billion the year before. Net sales rose to $24.46 billion, from $17.35 billion in the prior year.

Digital sales increased 12% versus the fourth quarter of 2020 and increased 36% versus the fourth quarter of 2019. Digital penetration was 39% of net sales, a 5% point decline from the fourth quarter of 2020, but a 9-percentage point improvement over the fourth quarter of 2019.

About 7.2 million new customers shopped the Macy’s brand during the quarter, an 11% increase versus the fourth quarter of 2019. During the fourth quarter of 2021, 58% of new customers came through the digital channel.

Bloomingdale’s comparable sales rose 37.6% versus the fourth quarter of 2020, and 13% versus the fourth quarter of 2019. About 391,000 new customers shopped the Bloomingdale’s brand during the quarter, a 26% increase versus the fourth quarter of 2019 and spent 41% more.

Results were driven by strong sales of luxury handbags, fine jewelry, men’s shoes and contemporary fashions, fragrances and home.

Macy’s Press Release 

Macy’s soars in Q4, no dot-com spinoff