What the numbers say: Macy's worldwide gross profit declined from $10.6B in 2015 to $9.4B in 2019. It then dipped sharply to $5.1B in 2020 before recovering to $9.5B in 2021. The firm's gross profit continued its gradual decline in 2022, falling to $9.1B. Relevance: Macy's posted Q1 net sales of $5B, down 6.8% YoY. Despite falling sales, the firm has committed to spending up to $3B over the next three years on technology-focused projects. The plan comes after Macy's rejected the demands of activist investor Jana Partners to spin off its e-commerce division. What's next: Macy's CEO and Chairman Jeff Gennette said last week that the company accelerated cost-cutting plans it devised six months ago. The firm now aims to save another $200M in 2023 and up to $350M in 2024. |
