Macy’s closed 64 stores last year as the retailer’s gains from real estate sales more than doubled

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Macy’s announced in its fourth-quarter and fiscal-year 2024 earnings report on Thursday that it expects another year of declining sales as the department store chain continues reshaping its footprint to focus on better-performing locations.

The retailer projected fiscal 2025 sales between $21 billion and $21.4 billion, down from $22.3 billion last year—closely aligning with analyst expectations of $21.34 billion, according to the Wall Street Journal. Macy’s net sales in the latest quarter fell 4.3% to $7.8 billion.

Across the company’s brands—Macy’s, Bloomingdale’s, and Bluemercury—comparable sales in the fourth quarter declined 1.1%. However, in owned and licensed businesses as well as its online marketplace, comparable sales inched up 0.2%, the highest increase since early 2022.

For the full year, comparable sales were expected to decline between 0.5% and 2% year-over-year, with adjusted earnings projected between $2.05 and $2.25 per share. Analysts polled by FactSet had anticipated slight comparable sales growth and earnings of $2.29 per share, the Wall Street Journal reported.

Closing stores, selling assets

Despite the mixed results, Macy’s said it saw progress with its “Bold New Chapter” strategy. The company previously announced plans to shutter 150 stores by the end of fiscal 2026 (January 31, 2027), leaving it with 350 locations. These remaining stores are Macy’s “go-forward” locations, in which the retailer said it would be prioritizing investment.

As part of this plan, Macy’s said it closed 64 stores in fiscal 2024, which it described as “non-go-forward” locations.

The closures helped Macy’s bring in more money from real estate. For fiscal 2024, Macy’s made $144 million in “asset sale gains,” more than double the figure from last year, when asset sale gains were $61 million. The company noted in the earnings report that removing non-go-forward Macy’s locations contributed to current year asset sale gains. 

Additionally, Macy’s delivered an update on its “First 50 locations” strategy. As outlined in a company earnings presentation, the strategy involved selecting the top 50 performing stores across its network to implement new retail initiatives. Its goal was to improve staffing, product displays, and customer experience enhancements. So far, these stores have performed better than the bulk of the chain.

Macy’s First 50 locations delivered a fourth consecutive quarter of comparable sales growth, up 0.8% on an owned basis and up 1.2% on an owned-plus-licensed basis, the company said.

“As we enter the second year of our strategy, we plan to scale initiatives that are resonating with our customers to drive long-term profitable growth and further unlock shareholder value,” said Tony Spring in Thursday’s earnings report.

Macy’s stock (NYSE: M) was flat at about $13.28 in midday trading.

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