Core Viewpoint - Macy's has faced significant financial repercussions due to the revelation of over $150 million in concealed delivery costs, leading to a reduction in its annual profit outlook and raising concerns about internal controls [2][3][4]. Financial Impact - The concealed delivery expenses amounted to $151 million, prompting Macy's to lower its fiscal 2024 adjusted earnings per share guidance to a range of $2.25 to $2.50, down from a previous range of $2.34 to $2.69 [3][6]. - The company's net sales for the quarter ending November 2 fell by 2.4% to $4.7 billion, with comparable sales down 3.0% on an owned basis [7]. Operational Changes - Macy's is implementing stronger internal controls and additional changes to prevent future occurrences of such issues, as stated by the company's chairman and CEO [7]. - The company plans to close about 150 unproductive stores and focus on approximately 350 "go-forward" locations as part of its 'Bold New Chapter' strategy [10]. Performance by Segment - Bloomingdale's reported a net sales increase of 1.4%, with comparable sales up 1.0% on an owned basis, driven by strength in contemporary apparel, beauty, and digital sales [8]. - Bluemercury also saw a sales rise of 3.2%, marking its 15th consecutive quarter of comparable sales growth [8]. Governance and Oversight - Following the investigation, two members of Macy's audit committee have stepped down, although it was clarified that their departure was not due to disagreements with the company [9][10]. - Auditor KPMG indicated that the approval of internal controls in Macy's latest annual report was no longer valid [9]. Shareholder Actions - Activist investor Barington Capital Group, in collaboration with Thor Equities, is advocating for changes in Macy's capital allocation strategy, including potential structural actions to enhance shareholder value [11].

Core Insights - Macy's, Inc. reported third-quarter fiscal 2024 results with revenues exceeding estimates but earnings falling short, indicating a decline in both metrics compared to the previous year [1][4][5] Financial Performance - Adjusted earnings were 4 cents per share, below the Zacks Consensus Estimate of 7 cents, and down from 21 cents in the prior year [4] - Net sales reached $4,742 million, surpassing the consensus estimate of $4,729 million, but decreased by 2.4% year-over-year [5] - Comparable sales fell 2.4% on an owned basis and 1.3% on an owned-plus-licensed-plus-marketplace basis compared to the previous year [5][6] Strategic Initiatives - The company is implementing its "Bold New Chapter" strategy, focusing on brand strengthening, luxury growth acceleration, and operational optimization through digital enhancements and supply chain improvements [2] - Macy's is expanding its First 50 initiative, closing underperforming stores, and monetizing assets to reinvest in core business [3] Brand Performance - Comparable sales across Macy's declined 3% year-over-year on an owned basis, while Bloomingdale's saw a 1% increase on an owned basis [8] - Bluemercury brand experienced a 3.3% increase in comparable sales on an owned basis, marking 15 consecutive quarters of growth [9] Margins and Expenses - Gross margin decreased by 60 basis points to 39.6%, below the estimated 40.3% [10] - Selling, general and administrative (SG&A) expenses rose to $2.06 billion, a 1.2% increase from the previous year, with SG&A as a percentage of total revenues increasing by 150 basis points to 43.5% [11][12] Cash and Inventory Overview - As of the end of the fiscal second quarter, Macy's had cash and cash equivalents of $315 million and long-term debt of $2.77 billion [13] - Merchandise inventories increased by 3.9% year-over-year [13] Future Guidance - For Q4 fiscal 2024, Macy's anticipates net sales between $7.8 billion and $8 billion, with adjusted earnings per share expected to range from $1.40 to $1.65 [15][16] - The company has updated its fiscal 2024 outlook, projecting net sales of $22.3 billion to $22.5 billion, slightly improved from previous estimates [18] - Adjusted earnings per share for fiscal 2024 are forecasted to be between $2.25 and $2.50, down from prior estimates [22]

Core Viewpoint - Macy's is accelerating its store closures as part of a comprehensive strategy to revive its struggling business, now expecting to close about 65 locations this year, up from a previous forecast of 50 [1][2]. Group 1: Store Closures and Strategy - The closures will occur post-holiday, and the company remains on track to close a total of 150 locations over three years as part of its "Bold New Chapter" strategy announced in February [2]. - The closures are focused on underperforming stores where the economics are unfavorable and customer traffic has shifted away [4][5]. - The company plans to reduce its store count to approximately 350 once all closures are implemented, while also adding about 45 Bloomingdale's and Bluemercury locations, which have shown sales growth [6]. Group 2: Store Revamping and Performance - Part of the strategy includes revamping 50 key stores, which are intended to serve as prototypes for future Macy's locations, with sales at these upgraded stores rising by 1.9% during the third quarter [7]. - The company plans to open nine new stores and remodel two additional stores in the fourth quarter [8]. Group 3: Investor Sentiment - Activist investor Barington Capital Group has expressed optimism regarding the new plan, highlighting the potential for a healthier store base that could lead to consistent revenue growth and profit improvements [9].

Core Viewpoint - Macy's is undergoing a challenging period with declining sales and changing consumer habits, prompting the company to implement its Bold New Chapter strategy to modernize operations and improve profitability [1][2]. Group 1: Company Strategy - The Bold New Chapter strategy includes an initiative called First 50, focusing on revamping 50 key store locations as prototypes for future stores [2]. - The strategy aims to enhance customer experiences and create new growth opportunities through modernization [2][8]. - Leadership remains optimistic about the future, emphasizing personalized shopping experiences as a key goal [3][7]. Group 2: Financial Performance - Third-quarter results show a 1.9% increase in comparable sales at the revamped stores, marking the third consecutive quarter of growth [4]. - Overall net sales fell 2.4% to $4.7 billion, with comparable store sales also decreasing by 2.4%, attributed to weak performance at non-First 50 locations [6]. - Bloomingdale's and Bluemercury reported positive comparable sales growth of 1% and 3.3%, respectively, with Bluemercury achieving its 15th consecutive quarter of growth [5]. Group 3: Operational Improvements - The company is addressing operational efficiency by phasing out legacy technology and optimizing its supply chain to enhance customer experience [8]. - There is a focus on inventory management and the use of digital tools to improve both in-store and online shopping experiences [8][10]. - Leadership is encouraged by the performance of the First 50 stores, indicating a positive trend in customer spending and visits [9][10]. Group 4: Governance and Compliance - An independent investigation revealed an intentional accounting error by a single employee, hiding approximately $151 million in delivery expenses [12]. - The company stated that this issue did not impact reported net cash flows, inventories, or vendor payments, and is strengthening controls to prevent future occurrences [13].

Market Performance - U.S. stocks traded higher, with the Nasdaq Composite gaining over 300 points on Wednesday [1] - The Dow rose 0.49% to 44,296.79, the NASDAQ increased 1.70% to 20,022.55, and the S&P 500 gained 0.89% to 6,088.63 [1] Sector Performance - Communication services shares increased by 3.1% on Wednesday [2] - Health care shares fell by 1% during the same trading session [3] Company Earnings - Macy's Inc reported third-quarter sales of $4.74 billion, surpassing the consensus estimate of $4.72 billion [4] - The retailer's adjusted EPS was $0.04, down from $0.21 a year ago, but above the consensus of $0.03 [5] - Macy's expects 2024 sales to be between $22.3 billion and $22.5 billion, compared to prior guidance of $22.1 billion to $22.4 billion and a consensus of $22.42 billion [5] - The company anticipates 2024 adjusted EPS of $2.25 to $2.50, lower than the previous guidance of $2.34 to $2.69 and below the consensus of $2.73 [5] Stock Movements - Candel Therapeutics, Inc. shares surged 59% to $7.32 following positive Phase 3 clinical trial results [6] - AmpliTech Group, Inc. shares increased 74% to $1.73 after announcing the development of proprietary amplifiers [6] - SEALSQ Corp shares rose 101% to $1.15 [6] - Cellectar Biosciences, Inc. shares plummeted 76% to $0.30 due to strategic options announcement impacting all departments [7] - Q32 Bio Inc shares fell 73% to $6.60 after failing to meet primary endpoint in clinical trial [7] - TFF Pharmaceuticals, Inc. shares dropped 42% to $0.17 [7] Commodities - Oil prices increased by 2.1% to $70.00, while gold prices rose by 1.4% to $2,756.10 [8] European Market Performance - European shares were mostly higher, with the eurozone's STOXX 600 rising 0.28%, Germany's DAX up 0.34%, and France's CAC 40 gaining 0.39% [10] Asian Market Performance - Asian markets closed mostly higher, with Japan's Nikkei 225 gaining 0.01% and China's Shanghai Composite Index increasing by 0.29% [12]

macys inc ★macy's blomingdales BLUEMERCURY 3Q24 Earnings December 11, 2024 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.'s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by ...

Financial Data and Key Metrics Changes - Total net sales for Q3 2024 were $4.7 billion, down 2.4% year-over-year, consistent with previous reports [43][54] - Adjusted EPS for Q3 was $0.04, benefiting from asset sale gains, but negatively impacted by delivery expense adjustments [15][53] - Gross margin rate was 39.6%, down 60 basis points year-over-year, with merchandise margin declining 70 basis points [48][49] - SG&A expenses were $2.1 billion, representing 42.1% of total revenue, reflecting a disciplined approach to cost control [51] Business Line Data and Key Metrics Changes - The first 50 Macy's locations reported a positive comp of 1.9%, marking three consecutive quarters of growth [18][67] - Bloomingdale's net sales increased by 1.4% with comps rising 3.2%, driven by women's advanced contemporary apparel and beauty products [26][27] - Bluemercury achieved a 3.3% comp increase, marking its 15th consecutive quarter of positive comps [29] Market Data and Key Metrics Changes - The overall enterprise comps were down 1.3%, with Macy's nameplate comps down 2.2% [43][62] - The luxury segments, including Bloomingdale's and Bluemercury, are expected to collectively grow by 2% to 2.5% [62] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, aiming for sustainable profitable growth through improved customer experience and operational efficiency [10][17] - The strategy includes closing approximately 65 non-go-forward locations, up from previous estimates, to enhance profitability [53][115] - Investments in staffing and merchandising are being made to improve customer experience, particularly in high-touch categories like women's shoes and handbags [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about quarter-to-date sales trends, which remain above Q3 levels, despite challenges from unseasonably warm weather [34][56] - The company anticipates a competitive environment for the holiday season but is encouraged by recent improvements in customer engagement and sales [80][96] - The outlook for Q4 2024 includes expected net sales of $7.8 billion to $8 billion, with a cautious approach to consumer spending [57][62] Other Important Information - The company has identified and implemented additional controls to prevent accounting issues from recurring, following an investigation into erroneous entries [11][13] - The company plans to continue its focus on improving inventory management and fulfillment efficiency [32][50] Q&A Session Summary Question: Drivers of comp improvement and sustainability - Management highlighted the positive performance of the First 50 locations as a leading indicator of growth potential, with expectations for expansion in 2025 [74][92] Question: Confidence in test locations and profitability - Management expressed confidence in the transferability of successful initiatives from test locations to broader operations, emphasizing the importance of customer response [90][91] Question: Gross margin outlook and promotional environment - Management acknowledged the competitive landscape and consumer pressure, indicating adjustments to promotional strategies while maintaining focus on profitability [94][96] Question: Performance of smaller format stores and margin analysis - Management reported positive responses to smaller format stores and discussed the impact of weather and competition on merchandise margins [116][121] Question: Guidance assumptions and private brand development - Management indicated that the guidance reflects sequential improvements across various business dimensions, with private brands playing a key role in meeting consumer value expectations [126][130]

Macy's provided an update on the former employee who was responsible for hiding approximately $151 million of cumulative delivery expenses over the past three years.  "We’ve concluded our investigation and are strengthening our existing controls and implementing additional changes designed to prevent this from happening again and demonstrate our strong commitment to corporate governance," Macy's CEO Tony Spring said in a statement. Ticker Security Last Change Change % M MACY'S INC. 16.16 +0.18 +1.16% One ...

For the quarter ended October 2024, Macy's (M) reported revenue of $4.74 billion, down 2.4% over the same period last year. EPS came in at $0.04, compared to $0.21 in the year-ago quarter.The reported revenue represents a surprise of +0.28% over the Zacks Consensus Estimate of $4.73 billion. With the consensus EPS estimate being $0.07, the EPS surprise was -42.86%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

Macy’s said an investigation into accounting problems found that a rogue employee hid more than $151 million in expenses to cover up a bookkeeping mistake and wasn’t motivated by personal or financial gain, according to a report.News of the accounting coverup in late November delayed the company’s quarterly earnings report and sent its shares tumbling. The department store giant’s shares slid by more than 11% on Wednesday after Macy’s cut its profit outlook for the year. 3 Macy’s chief executive Tony Spri ...