Macy’s has reported lower overall sales for the fourth quarter as Bloomingdale’s and Bluemercury’s growth was more than offset by the decline of the Macy’s banner.

The company’s net sales for the quarter ended February 1 fell 4.3 per cent to $7.8 billion. Comparable sales were down 1.1 per cent on an owned basis and up 0.2 per cent on an owned-plus-licensed-plus-marketplace basis.

At Bloomingdale’s, net sales were up 2 per cent and comparable sales up 4.8 per cent. According to GlobalData MD Neil Saunders, the division delivered growth despite a soft luxury market, largely thanks to a balanced assortment.

At Bluemercury, net sales also grew 2.4 per cent and comparable sales rose 6.2 per cent.

Sales at Macy’s fell 5.3 per cent on a total basis and 1.9 per cent on a comparable basis. While the decline was partially due to the weaker stores that Macy’s plans to close, Saunders believes the chain is still struggling to pull in customers and drive share of wallet.

There are, however, several positive signs as management is tackling the problems and strengthening the business, the analyst continued. This is evident in the performance of the First 50 locations, whose comparable sales increased 0.8 per cent.

“As more stores are drawn into the transformation plan, Macy’s numbers will naturally strengthen,” he remarked.

For the full year, the company’s net sales were down 4.2 per cent and comparable sales fell 2.6 per cent on an owned basis and 1.6 per cent on an owned-plus-licensed-plus-marketplace basis.

On the bottom line, net loss in the prior year was replaced by a profit of $342 million.

The company expects comparable sales to decrease 0.5 per cent to 2 per cent in FY25.

“Admittedly the consumer environment is soft, but 2025 will also be another year of catching-up. However, Macy’s is now at least headed in the right direction in the retail race, and it is training itself to become faster,” Saunders concluded.