Macy's, Inc. (NYSE:M) Goldman Sachs 31st Annual Global Retailing Conference September 5, 2024 8:15 AM ET Company Participants Tony Spring - Chairman and Chief Executive Officer Adrian Mitchell - Chief Operating Officer and Chief Financial Officer Conference Call Participants Brooke Roach - Goldman Sachs Brooke Roach Good morning, everyone, and welcome to Day Two of our Goldman Sachs Global Retailing Conference. My name is Brooke Roach. I cover the apparel accessories and branded discretionary goods sector h ...

Sales Performance - Net sales for the second quarter of 2024 decreased by $193 million, or 3.8%, compared to the second quarter of 2023, totaling $4,937 million[82]. - Comparable sales for Macy's, Inc. declined 4.0% on an owned basis and 3.3% on an owned-plus-licensed-plus-marketplace basis[80]. - Net sales for the 26 weeks ended August 3, 2024, decreased by $329 million, or 3.3%, compared to the same period in 2023, impacted by ongoing macroeconomic conditions[91]. - For the 13 weeks ended August 3, 2024, net sales were $221 million, with a net loss of $135 million[114]. - Comparable sales on an owned basis decreased by 4.0% for the 13 weeks ended August 3, 2024, compared to the same period in the previous year[120]. - The company reported a decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis of 3.3% for the 13 weeks ended August 3, 2024[120]. Financial Metrics - The gross margin increased to $1,999 million, or 40.5% of net sales, compared to $1,954 million, or 38.1% of net sales in the second quarter of 2023[84]. - Adjusted diluted earnings per share for the second quarter of 2024 were $0.53, compared to $0.26 in the second quarter of 2023[81]. - The company reported diluted earnings per share of $0.75 for the second quarter of 2024, compared to $0.48 in the second quarter of 2023[90]. - EBITDA for the 13 weeks ended August 3, 2024, was $439 million, up from $221 million in the same period last year[127]. - Adjusted EBITDA for the 26 weeks ended August 3, 2024, was $802 million, compared to $815 million for the same period in the previous year[127]. Expenses and Costs - SG&A expenses decreased by $7 million, or 0.4%, in the second quarter of 2024 compared to the second quarter of 2023, totaling $1,973 million[85]. - Selling, general and administrative (SG&A) expenses decreased by 1.2% in 2024 compared to 2023, but increased as a percentage of total revenue due to a decline in total revenue[94]. - Credit card revenues decreased by $40 million in 2024, primarily due to higher net credit losses compared to 2023[92]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $137 million in the first half of 2024, down from $271 million in the first half of 2023[103]. - Capital expenditures in the first half of 2024 were $432 million, focused on digital and technology investments, compared to $564 million in the same period of 2023[105]. - The company ended the second quarter of 2024 with cash and cash equivalents of $646 million, an increase of $208 million from $438 million at the end of the second quarter of 2023[102]. Strategic Initiatives - The company plans to close approximately 55 underproductive Macy's locations in fiscal 2024, up from the previous estimate of 50[79]. - The First 50 locations achieved a second consecutive quarter of comparable sales growth, with Net Promoter Scores increasing approximately 600 basis points from the second quarter of 2023[78]. - Bluemercury experienced a 14th consecutive quarter of comparable sales growth, with an increase of 2.0% on an owned basis[80]. - The company expects to expand its luxury store footprint by approximately 20% through fiscal 2026, including the opening of about 15 small format locations[80]. Taxation - The effective tax rate for the second quarter of 2024 was 23.1%, down from 26.7% in the second quarter of 2023, reflecting different effective tax rates due to state and local taxes[89]. Balance Sheet - Current assets increased from $955 million to $1,028 million from February 3, 2024, to August 3, 2024[113]. - Current liabilities rose from $1,800 million to $2,190 million during the same period[113]. - Noncurrent liabilities increased from $10,199 million to $10,654 million as of August 3, 2024[113]. - The company reported $154 million in dividend income from non-Guarantor subsidiaries for the 13 weeks ended August 3, 2024[115]. Share Repurchase - The company did not repurchase any shares during the first half of 2024, with $1,375 million remaining available under the share repurchase program[108].

Shares of Macy's, Inc. (M) have come under significant pressure following its second-quarter fiscal 2024 earnings results on Aug 21. On the day of the announcement, the stock of this New York-based retailer tumbled 12.9%, led by a disappointing sales performance that compelled management to lower its fiscal 2024 outlook, dampening investor sentiment.As consumer spending on non-essential items weakens, Macy's, which is heavily reliant on discretionary spending, reported a 3.8% year-over-year revenue decline ...

Guidance cuts didn't do the company any favors with investors.Sometimes it just isn't enough for a company to beat analyst estimates when it publishes quarterly earnings reports. At first glance, Macy's (M 5.21%) second quarter looked rather good, especially since the famous retailer topped the consensus projections for both revenue and profitability.But that earnings news wasn't all good, and quite a few investors traded out of the stock. According to data compiled by S&P Global Market Intelligence, across ...

J. Michael Jones Introduction The department store Macy's, Inc. (NYSE:M) management may be beginning to regret their decision to call off takeover talks with Arkhouse Management, who offered to buy all outstanding shares for $24.80. With the shares now trading over 35% below the offer value, having fallen another 9% following earnings, the missed opportunity is glaring. Although the earnings headline numbers appeared all right, with earnings per share coming in ahead of expectations, revenue below conse ...

Macy’s, Inc. M shares are trading lower after the company reported a second-quarter revenue miss.The fashion retailer reported second-quarter sales of $4.94 billion, missing the consensus of $5.12 billion, and adjusted EPS of $0.53, exceeding the consensus of $0.29.The department store operator said it now anticipates 2024 net sales of $22.1 billion-$22.4 billion, which is lower than the $22.3 billion-$22.9 billion expected earlier and down from 2023 sales of $23.09 billion.Goldman Sachs analyst Brooke Roac ...

Macy’s officials are confident in their “A Bold New Chapter” strategy, highlighted by the company’s First 50 locations.During its second-quarter earnings call Wednesday (Aug. 21), Macy’s Chairman and CEO Tony Spring noted the retailer showcased these flagship stores as a beacon of success amid a challenging retail environment.“We’re excited about the First 50,” Spring said during the earnings call with analysts, emphasizing that these stores serve as an indicator of Macy’s future potential. “Confidence in o ...

Sales growth disappointed in the second quarter.Shares of Macy's (M -12.15%) were pulling back today after the department-store operator issued a weak sales result in its second quarter, even though profits were strong. As a result, the stock was down 12% as of 11:24 a.m. ET.Macy's is still shrinkingThe retailer reported a revenue decline of 3.8% to $4.9 billion, which was well below estimates at $5.12 billion. Comparable sales were down 3.3%, showing that the business is continuing to lose customers in wha ...

Macy’s, Inc. (M) has reported second-quarter fiscal 2024 results, wherein the top line lagged the Zacks Consensus Estimate while the bottom line surpassed the same. Total revenues declined and earnings increased from the year-ago quarter’s reported figures. Comparable sales (comps) fell on an owned basis and an owned-plus-licensed basis.M shares have lost 19.7% in the past six months compared with the industry’s 16.6% decline.Sales & Earnings PictureMacy’s, currently carrying a Zacks Rank #3 (Hold), has rep ...

Macy’s (NYSE:M) just reported results for the second quarter of 2024.Macy’s reported earnings per share of 53 cents. This was above the analyst estimate for EPS of 30 cents.The company reported revenue of $4.94 billion.This was 3.57% worse than the analyst estimate for revenue of $5.12 billion.InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as we ...