What: Macy’s, Inc. reported financial results for the first quarter of 2022 and updated its annual guidance.

Why is it important: Diluted earnings per share of USD0.98 and adjusted diluted earnings per share of USD1.08. This compares to diluted earnings per share of USD0.32 and adjusted diluted earnings per share of USD0.39.

Comparable sales were up 12.8% on an owned basis and up 12.4% on an owned-plus-licensed basis. Digital sales increased 2% year-over-year while increasing 34% versus the first quarter of 2019. Digital penetration was 33% of net sales, a 4-percentage point decline from the first quarter of 2021, but a 9-percentage point improvement over the first quarter of 2019.

Macy’s comparable sales were up 10.7% on an owned basis and up 10.1%, on an owned-plus-licensed basis.

Star Rewards program members made up approximately 69% of the total Macy's brand owned-plus-licensed sales on a trailing twelve-month basis, up approximately 6 percentage points versus the prior year.

Consumer shopping behaviors shifted during the quarter to more occasion-based apparel. As a result, dresses, women’s shoes, accessories, and men’s tailored had strong sales performance.

Bloomingdale’s comparable sales on an owned basis were up 28.1% and on an owned-plus-licensed basis were up 26.9%. Bluemercury comparable sales were up 25.2% on an owned and owned-plus-licensed basis.

Gross margin for the quarter was 39.6%, up from 38.6% in the first quarter of 2021.

Macy’s, Inc. Reports First Quarter 2022 Results