Financial Data and Key Metrics Changes - Macy's Inc. achieved comparable sales growth of 1.9%, marking the strongest performance in 12 quarters, with adjusted EPS of $0.41 exceeding guidance of $0.15 to $0.20 [5][20][24] - Net sales were $4.8 billion, down 2.5% year-over-year, primarily due to the closure of 64 non-GoForward stores, but excluding this impact, sales grew by 0.9% [20][21] - Gross margin was 39.7% of net sales, slightly better than expectations, but down from 40.5% last year, influenced by proactive markdowns and tariff impacts [22][23] Business Line Data and Key Metrics Changes - Macy's comparable sales grew by 1.2%, with GoForward Macy's achieving 1.5% growth, and Reimagined 125 locations up 1.4% [8][21] - Bloomingdale's reported a 5.7% increase in comparable sales, achieving its highest second quarter sales and net promoter score on record [11][12] - Bluemercury experienced a 1.2% growth in comparable sales, marking its 18th consecutive quarter of gains, driven by skincare and recent brand launches [14] Market Data and Key Metrics Changes - The consumer remained resilient through the first half of the year, with a cautious outlook due to tariff uncertainties impacting demand [15][26] - The company anticipates a 40 to 60 basis point tariff impact on gross margin for the full year, compared to a previous expectation of 20 to 40 basis points [16][28] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on enhancing customer experience, improving product offerings, and leveraging a multi-brand, multi-channel approach [5][11] - The company aims to close underperforming locations while investing in growth opportunities, particularly in the GoForward business and digital channels [11][16] - Macy's is expanding its private brand portfolio, which is expected to drive differentiation and improve margins [55] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer's resilience, noting strong sales in various categories and a healthy start to the back-to-school season [35][48] - The company is focused on navigating the macroeconomic environment while continuing to invest in growth initiatives [26][90] - Management highlighted the importance of maintaining a balance between leveraging SG&A and driving growth [92] Other Important Information - The company returned $251 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its share buyback authorization [25] - The balance sheet remains strong, with $829 million in cash and a net long-term debt reduction of approximately $340 million [25] Q&A Session Summary Question: Can you rank the drivers of sequential improvement in same-store sales? - Management noted strong growth across various categories, with July being the strongest month, driven by a healthy start to back-to-school shopping [34][35] Question: What learnings have come from the Reimagined 125 stores? - Positive performance was noted, with local empowerment and improved staffing contributing to better customer experiences and net promoter scores [40][42] Question: How is the company addressing tariff impacts on pricing? - Management is taking a surgical approach to pricing, negotiating with suppliers, and adjusting prices selectively based on category and brand [42][43] Question: What is the outlook for the consumer and guidance for the third quarter? - The consumer is viewed as resilient, but management remains cautious due to potential tariff impacts and is monitoring the situation closely [48][49] Question: How is the company planning to grow its private brands? - The company is reimagining its private brands and has seen positive initial responses, with plans for further growth and differentiation [52][55] Question: What are the expectations for SG&A improvements? - Management expects continued SG&A savings while reinvesting in growth initiatives, with a focus on leveraging expenses in the long term [60][61]

Financial Data and Key Metrics Changes - Macy's Inc. achieved comparable sales growth of 1.9%, with adjusted EPS of $0.41, exceeding guidance of $0.15 to $0.20 [5][18][23] - Net sales were $4.8 billion, down 2.5% year-over-year, primarily due to the closure of 64 non-GoForward stores [18][19] - Gross margin was 39.7% of net sales, slightly better than expectations, impacted by proactive markdowns and tariffs [21][22] Business Line Data and Key Metrics Changes - Macy's brand achieved 1.2% comparable sales growth, driven by GoForward locations which rose 1.5% [6][19] - Bloomingdale's reported a 5.7% increase in comparable sales, marking its fourth consecutive quarter of growth [11][12] - Bluemercury achieved 1.2% comparable sales growth, its 18th consecutive quarter of gains, driven by skincare and new brand launches [13][14] Market Data and Key Metrics Changes - The luxury market remains competitive, but Bloomingdale's is gaining market share through brand expansions and digital growth [12][81] - The consumer remains resilient, with a notable portion of Macy's customer base earning over $100,000 household income [47][48] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on enhancing customer experience, expanding product offerings, and optimizing operations [5][14] - The company is investing in Reimagined 125 stores, which have shown positive performance and customer satisfaction [40][41] - Future growth will be supported by expanding private brands and leveraging partnerships with market brands [52][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer's resilience but remains prudent due to potential tariff impacts [14][46] - The company anticipates a tariff impact of 40 to 60 basis points on gross margin, adjusting pricing strategies accordingly [25][42] - The outlook for the third quarter and full year includes a cautious view on consumer demand and potential impacts from tariffs [24][25] Other Important Information - The company returned $251 million to shareholders through dividends and share repurchases, with $1.2 billion remaining on the buyback authorization [23][24] - Management emphasized the importance of maintaining a healthy balance sheet and liquidity profile to navigate market challenges [29] Q&A Session Summary Question: Drivers of sequential improvement in same-store sales - Management noted strong growth across various categories, with July being the strongest month, driven by back-to-school shopping [33][34] Question: Learnings from Reimagined 125 stores and expansion plans - Positive performance was noted in both the first and next 75 Reimagined stores, with local empowerment being a key factor [39][40] Question: Consumer sentiment and pricing strategies amid tariffs - Management sees the consumer as resilient but choiceful, with a cautious approach to pricing adjustments based on category performance [46][47] Question: SG&A savings and growth opportunities - SG&A was down nearly $30 million, with continued savings expected in the second half while reinvesting in growth initiatives [60][61] Question: Impact of tariffs on gross margin and future guidance - Tariffs had a notable impact in Q2, with management focused on mitigation strategies and maintaining competitive pricing [80][83] Question: Investments in service and balancing growth with SG&A leverage - Management is committed to investing in customer-facing initiatives while managing costs effectively to drive growth [94][95]

Financial Data and Key Metrics Changes - Macy's Inc. achieved comparable sales growth of 1.9%, with adjusted EPS of $0.41, exceeding guidance of $0.15 to $0.20 [5][6][23] - Net sales were $4.8 billion, down 2.5% year-over-year, primarily due to the closure of 64 non-GoForward stores [18][19] - Gross margin was 39.7% of net sales, slightly better than expectations, impacted by proactive markdowns and tariffs [21][22] Business Line Data and Key Metrics Changes - Macy's comparable sales grew by 1.2%, driven by GoForward Macy's which rose 1.5% [6][19] - Bloomingdale's achieved a 5.7% increase in comparable sales, marking its fourth consecutive quarter of growth [11][12] - Bluemercury reported a 1.2% increase in comparable sales, its 18th consecutive quarter of gains [13] Market Data and Key Metrics Changes - The luxury segment, particularly Bloomingdale's, is gaining market share, with strong performances in ready-to-wear, fine jewelry, and fragrances [12][81] - The overall consumer remains resilient, with a notable portion of Macy's customer base earning over $100,000 household income [47] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on enhancing customer experience, improving product offerings, and leveraging a multi-brand, multi-channel approach [5][14] - The company is committed to closing underperforming locations while investing in growth areas, particularly in the GoForward business and digital initiatives [11][15] - Future growth will be supported by expanding private brands and enhancing partnerships with existing brands [52][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the consumer's resilience but acknowledged the uncertainty surrounding tariffs and their impact on demand [14][46] - The company plans to reinvest savings from closed stores into initiatives that support long-term growth aspirations [25][29] - Management remains focused on maintaining a healthy balance sheet and improving operational efficiencies [24][29] Other Important Information - The company recognized $16 million in asset sale gains during the quarter [22] - Year-to-date operating cash flow was $255 million, significantly improved from $137 million last year [23] Q&A Session Summary Question: Drivers of sequential improvement in same-store sales - Management noted strong growth across various categories, with July being the strongest month, driven by back-to-school shopping [33][34] Question: Learnings from Reimagined 125 stores and expansion plans - Positive performance was noted in both the first and next 75 Reimagined stores, with local empowerment being a key factor [39][40] Question: Consumer sentiment and pricing strategies amid tariffs - Management indicated a cautious approach to pricing, with surgical price increases based on category and brand performance [41][42] Question: SG&A savings and growth opportunities - SG&A was down nearly $30 million, with continued focus on cost management while reinvesting in growth initiatives [60][61] Question: Bloomingdale's performance amid luxury market pressures - Bloomingdale's has maintained growth and market share, with strong leadership and strategic brand partnerships [81][82] Question: Tariff impacts and mitigation strategies - Tariffs had a notable impact in Q2, with management focused on mitigating future impacts through negotiations and strategic sourcing [83][84] Question: Investments in service and SG&A leverage - Management emphasized the importance of balancing investments in customer-facing initiatives with maintaining operational efficiency [95][96]

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]

Financial Performance - Macy's Inc's net sales decreased by 5.1% to $4.6 billion compared to 1Q24[45, 46] - Comparable owned sales decreased by 2.0% versus 1Q24[47, 48] - Comparable owned-plus-licensed-plus-marketplace (O+L+M) sales decreased by 1.2% compared to 1Q24[49, 50] - Adjusted diluted earnings per share (EPS) was $0.16[10, 11] - Gross margin was $1.804 billion, a decrease of 5.1%[57] - Inventory decreased by 0.5% to $4.663 billion[26, 57] Brand Performance - Macy's nameplate comparable O+L+M sales decreased by 2.1% versus 1Q24[15, 56] - Bloomingdale's comparable O+L+M sales increased by 3.8% compared to 1Q24[17, 56] - Bluemercury comparable owned sales increased by 1.5% versus 1Q24[23, 56] Future Outlook - FY25 net sales are projected to be between $21.0 billion and $21.4 billion[67] - FY25 comparable O+L+M sales are expected to decline by 2.0% to 0.5% compared to FY24[67] - 2Q25 net sales are estimated to be between $4.65 billion and $4.75 billion[70]

Financial Data and Key Metrics Changes - Fourth quarter net sales were approximately $7.8 billion, down from $8.1 billion in the previous year, aligning with guidance [31] - Total enterprise comparable sales increased by 0.2%, marking the highest quarterly results since Q1 2022 [31] - Adjusted EPS for the fourth quarter was $1.8, exceeding guidance due to better-than-expected SG&A and credit card revenues [13][35] Business Line Data and Key Metrics Changes - Macy's net sales decreased by 5.3%, with comparable sales down 0.9% [32] - Bloomingdale's achieved a 6.5% increase in comparable sales, the strongest fourth quarter volume in its history [17] - Blue Mercury's net sales rose by 2.4%, with comparable sales increasing by 6.2% [32] Market Data and Key Metrics Changes - The first fifty Macy's locations saw a positive 1.2% comparable sales growth, while the remaining locations lagged behind [14] - The luxury segment, particularly Bloomingdale's, showed strong performance, indicating a robust demand in that market [17][18] Company Strategy and Development Direction - The "Bold New Chapter" strategy aims to return the company to sustainable profitable growth by focusing on customer needs and improving the store environment [7][8] - The company plans to close approximately 150 underperforming stores to concentrate resources on more productive locations [15][100] - Investments in digital improvements and marketing strategies are being prioritized to enhance customer experience [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic shifts made, despite acknowledging ongoing external uncertainties affecting consumer behavior [21][30] - The company anticipates a challenging environment in 2025, with guidance reflecting caution due to economic pressures [38][90] Other Important Information - The company generated $679 million in free cash flow, a 71% increase from the previous year, and returned $192 million to shareholders through dividends [11][36] - The company is committed to reducing capital expenditures while prioritizing investments that support long-term growth [21][43] Q&A Session Summary Question: Insights on 2025 and same-store sales constraints - Management highlighted progress in the first year of the strategy, with growth in the first fifty stores and closing of underperforming locations [47] Question: Drivers of SG&A rate pressure - Management indicated that SG&A pressures are being managed through reinvestment in customer experience and operational efficiencies [51] Question: Engaging various customer demographics - Management emphasized the strength of the Macy's portfolio and its ability to adapt to changing consumer needs across different demographics [58] Question: Overall consumer health and promotional levels - Management noted that consumer health remains under pressure but emphasized the importance of creating compelling offerings to drive sales [72] Question: Trends in go-forward comps and category dynamics - Management reported strong performance in ready-to-wear and beauty categories, while acknowledging challenges in the home segment [84]

Financial Data and Key Metrics Changes - Fourth quarter net sales were approximately $7.8 billion, down from $8.1 billion last year, in line with guidance [43] - Total enterprise comps increased by 0.2%, the highest quarterly results since Q1 2022 [43] - Adjusted EPS for the fourth quarter was $1.80, above guidance, primarily due to better-than-expected SG&A and credit card revenues [15][50] - Free cash flow grew by 71% to $679 million, including $283 million from asset monetization [12][51] - Year-end inventories increased by 2.5% year-over-year, with half of the increase attributed to the conversion to cost accounting [47] Business Line Data and Key Metrics Changes - Macy's net sales decreased by 5.3%, with comps down 0.9% [44] - Bloomingdale's achieved a positive 6.5% comp, the strongest fourth quarter volume in its history [22] - Bluemercury's net sales were up 2.4%, with comps rising 6.2% [44] - The First 50 locations at Macy's achieved a positive 1.2% comp, outperforming the rest of the fleet [16] Market Data and Key Metrics Changes - The luxury segment showed strong performance, with Bloomingdale's and Bluemercury continuing positive comp trends [21] - Macy's media network revenues increased by 7%, reflecting growth in advertisers and campaign counts [45] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on improving store environments and enhancing the omnichannel customer experience [9][10] - The company plans to continue reducing CapEx while prioritizing investments that support growth and profitability [29] - The strategy includes closing underperforming stores to focus resources on go-forward locations [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic shifts made, while acknowledging the need for continued work [13] - The company is cautious about the external environment and consumer health, expecting pressure to continue in the near term [100][126] - The outlook for fiscal 2025 includes net sales of $21 billion to $21.4 billion, with comps expected to decline by 2% to 0.5% [55][56] Other Important Information - The company closed 64 non-go-forward Macy's stores ahead of the planned 50 closures, contributing to asset sale gains of $144 million [12][18] - The company is focused on enhancing its private brand offerings, with plans to address all home furnishing brands by mid-2025 [134] Q&A Session Summary Question: Areas of strength relative to same-store sales constraints - Management highlighted progress in the first year of the Bold New Chapter, including growth in the First 50 stores and closing underperforming locations [69][70] Question: Drivers of SG&A rate pressure - SG&A expenses were impacted by lower total revenue, but savings from store closures are being reinvested into customer experience initiatives [48][78] Question: Engaging various customer demographics - The company emphasized its multi-category business and strong partnerships, which allow for flexibility in navigating the uncertain environment [85][86] Question: Overall consumer health and promotional levels - Management noted that consumer health remains under pressure, with a focus on making offerings more compelling [99][103] Question: Trends in go-forward comps and category dynamics - The company observed strong performance in ready-to-wear and beauty categories, while the home business faced challenges [116][120] Question: Private label penetration and store closures - The company is working to rebuild its private label business and remains committed to closing approximately 150 stores by the end of fiscal 2026 [134][139]