Executive Summary
Macy's QQ4 2024 delivered a pronounced earnings rebound driven by a strong top-line recovery and meaningful improvements in profitability. Revenue reached $8.007 billion, up 60.14% year-over-year and 63.31% quarter-over-quarter, underpinned by favorable demand and an aggressive but disciplined promotional strategy. Gross profit totaled $3.016 billion for a gross margin of 37.67%, marking a material improvement versus prior periods and signaling favorable leverage on fixed costs as the company scales its omnichannel template. Operating income was $499 million (6.23% margin), a dramatic YoY uplift of 299.2% and QoQ surge of 679.69%, with net income of $342 million and diluted EPS of $1.21, while basic EPS stood at $1.23. EBITDA reached $681 million, translating to an EBITDA margin of 8.51%.
Key Performance Indicators
QoQ: 679.69% | YoY:299.20%
QoQ: 1 121.43% | YoY:451.61%
QoQ: 1 130.00% | YoY:459.09%
Key Insights
Revenue: $8.007B (YoY +60.14%, QoQ +63.31%). Gross Profit: $3.016B; Gross Margin 37.67%. Operating Income: $499M; Operating Margin 6.23%. Net Income: $342M; Net Margin 4.27%. EPS (diluted): $1.21; EPS (basic): $1.23. EBITDA: $681M; EBITDA Margin 8.51%. Cash Flow: Operating cash flow $1.309B; Free cash flow $1.189B. Balance Sheet: Total assets $16.402B; Total liabilities $11.85B; Total equity $4.552B; Total debt $5.707B; Net debt $4.40B. Liquidity: Cash and equivalents $1.306B; Current ratio 1.43...
Financial Highlights
Revenue: $8.007B (YoY +60.14%, QoQ +63.31%). Gross Profit: $3.016B; Gross Margin 37.67%. Operating Income: $499M; Operating Margin 6.23%. Net Income: $342M; Net Margin 4.27%. EPS (diluted): $1.21; EPS (basic): $1.23. EBITDA: $681M; EBITDA Margin 8.51%. Cash Flow: Operating cash flow $1.309B; Free cash flow $1.189B. Balance Sheet: Total assets $16.402B; Total liabilities $11.85B; Total equity $4.552B; Total debt $5.707B; Net debt $4.40B. Liquidity: Cash and equivalents $1.306B; Current ratio 1.43; Quick ratio 0.445; Cash ratio 0.289. Dividend payout ratio 14%; Dividend yield 1.11%. Valuation snapshots show P/E 3.17, P/B 0.95, P/S 0.542, EV/EBITDA 12.81.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.01B |
60.14% |
63.31% |
| Gross Profit |
3.02B |
46.84% |
47.92% |
| Operating Income |
499.00M |
299.20% |
679.69% |
| Net Income |
342.00M |
451.61% |
1 121.43% |
| EPS |
1.23 |
459.09% |
1 130.00% |
Key Financial Ratios
operatingProfitMargin
6.24%
operatingCashFlowPerShare
$4.7
freeCashFlowPerShare
$4.27
Management Commentary
Transcript data not provided in the supplied materials. No earnings-call excerpts or management quotes are available in the dataset to cite within this report.
Transcript data not available in the provided dataset.
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Transcript data not available in the provided dataset.
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Forward Guidance
No explicit forward guidance was included in the provided materials. Given the strong Q4 performance, a conservative baseline would anticipate continued revenue momentum from omnichannel initiatives and improved gross margins if promotional activity remains disciplined and mix favors higher-margin categories. The key variables to monitor include: (1) consumer spending resilience and discretionary demand, (2) inventory levels and turnover as promotions normalize, (3) ongoing cost controls and fixed-cost leverage, (4) debt maturity profile and refinancing risk, and (5) capital allocation decisions (deleveraging vs. shareholder returns). Absent formal guidance, investors should weigh Macy's ability to sustain above-trend top-line growth against its still-elevated leverage and ongoing store-level costs.