2022 2021 2020

Total Revenues	25.29	18.09	25.33
Gross Profit	10.34	5.81	10.16
Cost of Revenues	14.96	12.29	15.17

An American Legend

Macys is an iconic American Company, but like many brick and mortar retailers, it has been struggling to maintain market share. For this case study find the companys most recent financial statements, including the income statement and balance sheet. There are many sources of this data, but one quick source is Morningstar.com. If you enter the companys ticket symbol, M in the quote box, you will find a report on the companys stock price as well as a host of other information, such as performance, key ratios, and financials. On the financial tab, you can find the income statement and balance sheet for the past five years.

Question 1

Looking at Macys income statement for 2020-2022, what has been the trend in sales (total Revenue) over the past three years? What can you conclude from this? What picture does it tell?

Question 2

As you have learned, gross profit is the difference between sales (or total revenues) and cost of sales (or cost of revenue). What is Macys gross profit for the last three years? What does this data tell you about Macys pricing strategy and costs?

Question 3

Looking at Macys income statement, what has been the trend in net income over the past three years? What can you have concluded by this?

Question 4

What is the relationship between the price of Macys stock and earnings? What are the earnings per share for each of the past three years, and what does that number mean to investors?