Group 1 - Macy's, Inc. (NYSE: M) has experienced a significant decline in share price, losing 41% over the past year [1] - Investors are dissatisfied with the slow pace of the company's turnaround efforts, particularly after it rejected a buyout offer [1] - The company has a history of making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns [1]

Core Viewpoint - Macy's Inc. has revised its annual outlook due to initial and current tariffs, moderation in consumer discretionary spending, and increased competition, leading to a decrease in expected adjusted earnings per share for fiscal 2025 [1] Financial Performance - The company reported net sales of $4.6 billion for Q1 2025, a decline of 5.1% year over year, but exceeded the consensus estimate of $4.50 billion [3] - Comparable sales decreased by 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis [3] - Adjusted earnings were reported at 16 cents per share, surpassing the consensus of 14 cents [4] - Core adjusted EBITDA was $308 million, down from $363 million a year ago [4] Future Guidance - For fiscal 2025, Macy's has lowered its adjusted earnings per share guidance from $2.05-$2.25 to $1.60-$2.00, compared to the consensus of $1.93 [1] - The company maintained its sales guidance for 2025 at $21 billion-$21.4 billion, slightly below the consensus of $21.31 billion [1] - For Q2 2025, Macy's forecasts sales between $4.65 billion and $4.75 billion and adjusted earnings of 15 to 20 cents per share, compared to the consensus of $4.76 billion and 34 cents, respectively [5] Margin and Sales Trends - The gross margin remained flat at 39.2%, with improved merchandise margin offset by higher delivery expenses as a percentage of net sales [4] - Comparable sales for the go-forward business were down 1.8% on an owned basis and 0.9% on an owned-plus-licensed-plus-marketplace basis [4] - Bloomingdale's and Bluemercury reported positive sales growth, with Bloomingdale's net sales up 2.6% and Bluemercury's up 0.8% [6]

Retailers are shaking up Wall Street, with earnings reports from Macy's Inc (NYSE:M), Abercrombie & Fitch Co (NYSE:ANF), and Dick's Sporting Goods Inc (NYSE:DKS) offering mixed signals on the impact of tariffs, consumer demand, and operational resilience. Macy's reported adjusted first-quarter earnings of 16 cents per share on revenue of $4.60 billion, topping Wall Street expectations. Still, the company cut its full-year profit forecast, citing tariff hikes and heavier promotions. Macy's is in the middle o ...

Core Viewpoint - Macy's reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, but down from $0.27 per share a year ago, indicating a 40.74% year-over-year decline in earnings [1] - The company achieved a revenue of $4.6 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.16%, but down from $4.85 billion year-over-year, reflecting a 5.12% decrease [2] Financial Performance - The earnings surprise for the latest quarter was 14.29%, and the company has surpassed consensus EPS estimates three times over the last four quarters [1][2] - Macy's shares have declined approximately 28.9% since the beginning of the year, contrasting with the S&P 500's gain of 0.7% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $4.72 billion, and for the current fiscal year, it is $2.03 on revenues of $21.18 billion [7] - The estimate revisions trend for Macy's is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Retail - Regional Department Stores industry is currently in the bottom 25% of the Zacks industry rankings, suggesting that stocks in this sector may struggle compared to those in the top 50% [8] - Another competitor in the same industry, Kohl's, is expected to report a quarterly loss of $0.22 per share, with revenues projected at $3.2 billion, down 5.2% from the previous year [9][10]

Financial Data and Key Metrics Changes - First quarter net sales reached $4.6 billion, exceeding guidance of $4.4 billion to $4.5 billion [9][29] - Comparable owned plus licensed plus marketplace sales declined by 1.2%, better than the guidance of a decline of 4.5% to 2.5% [9][29] - Adjusted diluted EPS was $0.16, above the guidance range of $0.12 to $0.15, compared to $0.27 last year [11][33] - Gross margin was $1.8 billion or 39.2% of net sales, flat compared to the prior year [32] Business Line Data and Key Metrics Changes - Macy's net sales were down 6.5%, with comparable sales down 2.1% [30] - Bloomingdale's net sales increased by 2.6%, with comparable sales rising by 3.8% [31] - Blue Mercury net sales were up 0.8%, with comparable sales increasing by 1.5% [31] - Backstage outperformed the total Macy's fleet, while Marketplace achieved approximately 40% GMV growth [12] Market Data and Key Metrics Changes - International tourism negatively impacted comparable sales by about 30 basis points [10] - The go-forward business comps outperformed total, declining by 0.9% [10] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening and reimagining Macy's, accelerating luxury, and modernizing operations [8][12] - The reimagined 125 locations outperformed the rest of the Macy's fleet, with a negative comp of 0.8% compared to a negative 2.1% for the total Macy's nameplate [12][30] - The company aims to diversify sourcing to mitigate tariff impacts, with 20% of products originating from China, down from over 50% pre-pandemic [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter, noting stronger performance in March and April compared to February [45] - The company anticipates a more choiceful consumer and plans to navigate an uncertain promotional environment [22][35] - Management highlighted the importance of maintaining a healthy inventory to sales ratio while being disciplined with inventory commitments [22][39] Other Important Information - The company plans to invest approximately $800 million in capital expenditures to support long-term growth [38] - SG&A expenses were relatively flat at $1.9 billion, with a percentage of total revenue at 39.9%, reflecting lower net sales [32] Q&A Session Summary Question: Sales guidance and consumer pressure - Management reaffirmed the annual sales guidance, noting stronger performance in March and April compared to February, and expressed cautious optimism for the rest of the year [44][45] Question: Impact of tariffs on pricing - Pricing is gradually being impacted by tariffs, with limited pricing seen in the second quarter, and management is negotiating with suppliers to manage costs [52][56] Question: Actions to capture market share - The company is focusing on product flow, improving marketing quality, and enhancing in-store experiences to capture market share [66] Question: Gross margin pressure in Q2 - Management indicated that gross margin pressure in Q2 will be influenced by markdowns and tariffs, with a focus on maintaining competitive pricing [68][69] Question: Inventory planning amid tariffs - The company plans to remain disciplined in inventory management, avoiding over-purchasing to mitigate tariff impacts [90] Question: Consumer health across income cohorts - Consumer health remains under pressure, but there is a positive response to newness and good value, particularly in categories like fine jewelry and big-ticket items [113][115]

Financial Data and Key Metrics Changes - First quarter net sales reached $4.6 billion, exceeding guidance of $4.4 billion to $4.5 billion [9][29] - Comparable owned plus licensed plus marketplace sales declined by 1.2%, better than the guidance of a decline of 4.5% to 2.5% [9][29] - Adjusted diluted EPS was $0.16, above the guidance range of $0.12 to $0.15, compared to $0.27 last year [11][33] - Gross margin was $1.8 billion or 39.2% of net sales, flat compared to the prior year [32] Business Line Data and Key Metrics Changes - Macy's net sales were down 6.5%, with comparable sales down 2.1% [30] - Bloomingdale's net sales increased by 2.6%, with comparable sales rising by 3.8% [31] - Blue Mercury net sales were up 0.8%, with comparable sales increasing by 1.5% [31] - Backstage outperformed the total Macy's fleet, while Marketplace achieved approximately 40% GMV growth [12] Market Data and Key Metrics Changes - International tourism negatively impacted comparable sales by about 30 basis points [10] - The go-forward business comps outperformed total, declining by 0.9% [10] - The luxury segment showed resilience, with Bloomingdale's and Blue Mercury continuing their positive comp trends [14][15] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, emphasizing omni-channel performance and reimagining store locations [8][9] - The strategy includes strengthening Macy's, differentiating luxury offerings, and modernizing operations [15][16] - The company aims to leverage generative AI to modernize its supply chain and improve inventory allocation [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second quarter, noting improved performance in May compared to earlier months [43][44] - The company is navigating uncertainties related to tariffs and consumer behavior, with a focus on maintaining flexibility in inventory commitments [22][23] - Management highlighted the importance of strategic pricing decisions to offset tariff impacts while remaining competitive [45][46] Other Important Information - The company closed 64 underperforming locations as part of its strategy [25] - The impact of tariffs is estimated to affect annual gross margin by roughly 20 to 40 basis points [20] - The company plans to invest in customer-facing initiatives funded by savings from closed locations [32][38] Q&A Session Summary Question: Sales guidance and consumer pressure - Management reaffirmed annual sales guidance, noting stronger performance in March and April compared to February, with cautious optimism for the rest of the year [43][44] Question: Strategic pricing decisions - Pricing adjustments are being made selectively, with a focus on maintaining value for customers while managing tariff impacts [45][46] Question: Impact of tariffs on pricing and consumer willingness - Pricing is gradually being integrated into the system, with limited increases observed in the second quarter [51][52] Question: Actions to capture market share - The company is enhancing product offerings, improving marketing quality, and enhancing in-store experiences to capture market share [65][66] Question: Reimagine 125 performance and future plans - Management remains optimistic about the Reimagine 125 initiative, with improvements noted in March and May [75][76] Question: SG&A guidance range - The SG&A guidance range provides flexibility to navigate various scenarios amid uncertainty [78][79] Question: Consumer health and category performance - Consumer health remains under pressure, but there is a positive response to newness and value [114][115]

Financial Data and Key Metrics Changes - First quarter net sales reached $4.6 billion, exceeding guidance of $4.4 billion to $4.5 billion, with a decline of 5.1% year-over-year [7][27] - Adjusted diluted EPS was $0.16, above the guidance range of $0.12 to $0.15, compared to $0.27 last year [9][32] - Comparable sales (comps) declined 1.2%, better than the guidance of a decline of 4.5% to 2.5% [7][27] - Gross margin was $1.8 billion or 39.2% of net sales, flat compared to the prior year [31] Business Line Data and Key Metrics Changes - Macy's net sales were down 6.5% with comps down 2.1% [28] - Bloomingdale's net sales increased by 2.6% with comps rising 3.8% [30] - Blue Mercury's net sales were up 0.8% with comps increasing 1.5% [30] - Backstage outperformed full-line stores by several hundred basis points, while Marketplace achieved approximately 40% GMV growth [11] Market Data and Key Metrics Changes - International tourism negatively impacted comps by about 30 basis points [8] - Go forward business comps declined 0.9%, outperforming total comps [8] - The luxury segment showed resilience with Bloomingdale's and Blue Mercury continuing positive comp trends [12][14] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, emphasizing omni-channel performance and improving customer experience [6][10] - The strategy includes strengthening and reimagining Macy's, accelerating luxury offerings, and modernizing operations [10][14][15] - The company aims to diversify sourcing to mitigate tariff impacts, reducing reliance on China from over 50% pre-pandemic to 20% currently [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter, noting improved performance in May compared to earlier months [43][44] - The company anticipates a more choiceful consumer and plans to navigate a competitive promotional landscape [21][34] - Management highlighted the importance of maintaining a healthy inventory to sales ratio while being disciplined with inventory commitments [21][22] Other Important Information - The company closed 64 underperforming locations last year as part of its strategy [24] - Capital expenditures are expected to be approximately $800 million, reflecting a commitment to long-term growth [37] - The company plans to return approximately $152 million to shareholders through dividends and share repurchases [33] Q&A Session Summary Question: Sales guidance and consumer pressure - Management reaffirmed annual sales guidance, noting stronger performance in March and April compared to February, with cautious optimism for the rest of the year [43][44] Question: Strategic pricing decisions - Pricing adjustments are being made selectively, with a focus on maintaining value for consumers while navigating tariff impacts [45][46] Question: Impact of tariffs on pricing - Pricing is gradually being integrated into the system, with limited pricing seen in Q2, and negotiations with vendors are ongoing [50][51] Question: Actions to capture market share - The company is focusing on product diversity, improved marketing, and enhanced in-store experiences to capture market share [59][62] Question: Inventory planning amid tariffs - The company plans to remain disciplined with inventory flow and avoid over-purchasing to mitigate tariff impacts [86][87] Question: Consumer health across income cohorts - Consumer health remains under pressure, but discretionary spending is showing signs of improvement, particularly in categories like fine jewelry [108][110]

在第一财季，梅西百货同名品牌依然表现最差。梅西百货自有品牌、授权品牌以及线上市场的同店销售额同比下降 2.1%。尽管如此，Bloomingdale's百货公司和Bluemercury公司(这两家是该公司的高端连锁店)的销售额均有所增长(分 别增长3.8%、1.5%)。 为了扭转梅西百货同名门店的颓势，梅西百货投资了50家门店——被称为"首批50家"——增加了员工数量，提升了陈 列风格，并调整了商品组合。目前，梅西百货已将这一举措扩展到另外75家门店，使受关注门店总数达到125家。这略 高于梅西百货计划保留的350家同名门店的三分之一。这125家门店的业绩表现优于梅西百货品牌的整体表现。梅西百 货旗下自有及授权门店的翻新后可比销售额较去年同期下降了0.8%。 零售商对本年度的预期差异很大，因为美国贸易政策的迅速变化使得企业难以做出准确预测。家得宝公司(HD.US)和沃 尔玛公司(WMT.US)都维持了其年度预期不变，而塔吉特公司(TGT.US)则下调了预期。美鹰服饰公司(AEO.US)则取消 公布指引，理由是打折活动以及库存减值。那些销售日用品的连锁店的经营状况普遍要好于那些销售非必需商品的连 锁店。因为消费者 ...

Flower Show Tote Bag and Charm @ Macy's 1Q25 Earnings May 28, 2025 Safe Harbor Statement All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy's, Inc. management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forwa ...

Financial Performance - Macy's, Inc. reported net sales of $4.6 billion, exceeding prior guidance, with a decrease of 5.1% compared to the first quarter of 2024[5]. - Comparable sales were down 2.0% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis, surpassing previous guidance[5]. - GAAP diluted EPS was $0.13, and adjusted diluted EPS was $0.16, both above the company's prior guidance range[5]. - Net sales for the 13 weeks ended May 3, 2025, were $4,599 million, a decrease of 5.1% compared to $4,846 million for the same period in 2024[28]. - Total revenue for the same period was $4,793 million, down from $5,000 million, reflecting a decline of 4.1%[28]. - Net income decreased to $38 million, compared to $62 million in the prior year, representing a decline of 38.7%[28]. - Basic earnings per share were $0.14, down from $0.22, a decrease of 36.4%[28]. - Adjusted diluted earnings per share for the 13 weeks ended May 3, 2025, was $0.16, down from $0.27 for the same period in 2024, a decrease of 40.7%[47]. Sales Growth - Bloomingdale's achieved comparable sales growth of 3.0% on an owned basis and 3.8% on an owned-plus-licensed-plus-marketplace basis[5]. - Bluemercury reported a 1.5% increase in comparable sales, marking its 17th consecutive quarter of growth[5]. - Comparable sales for Bloomingdale's increased by 3.0% on an owned basis for the 13 weeks ended May 3, 2025[45]. - The impact of departments licensed to third parties contributed 0.8% to comparable sales on an owned-plus-licensed-plus-marketplace basis for Macy's[45]. - The decrease in comparable sales on an owned basis for Macy's go-forward business was 1.8% for the 13 weeks ended May 3, 2025[45]. - The company experienced a decrease in comparable sales on an owned-plus-licensed basis of 0.8% for the 13 weeks ended May 3, 2025[45]. Financial Returns and Guidance - The company returned approximately $152 million to shareholders, including $51 million in cash dividends and $101 million in share repurchases[5]. - The company expects annual net sales guidance to remain unchanged at $21.0 billion to $21.4 billion for 2025[19]. - Adjusted diluted earnings per share guidance for 2025 is projected to be between $1.60 and $2.00[19]. Operational Metrics - Adjusted EBITDA was $324 million, or 6.8% of total revenue, compared to $364 million, or 7.3% of total revenue in the first quarter of 2024[11]. - Adjusted EBITDA for the 13 weeks ended May 3, 2025, was $324 million, down from $364 million for the same period in 2024, representing a decrease of 11%[46]. - Core Adjusted EBITDA for the 13 weeks ended May 3, 2025, was $308 million, down from $363 million for the same period in 2024, a decrease of 15.1%[46]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were $932 million, down from $1,306 million[30]. - Total assets decreased to $16,089 million from $16,402 million, a decline of 1.9%[30]. - Total current liabilities decreased to $4,387 million from $4,524 million, a reduction of 3.0%[30]. - The company reported a net cash used by operating activities of $64 million, compared to a net cash provided of $129 million in the prior year[33]. - The company incurred $100 million in capital expenditures during the period, down from $154 million in the previous year[33]. Debt and Financial Adjustments - The company reported a loss on extinguishment of debt of $3 million for the 13 weeks ended May 3, 2025[46].