Financial Data and Key Metrics Changes - The company reported its best quarter in 12 quarters, exceeding guidance for sales, margin, revenue, EBITDA, and EPS [9] - Quarterly EBITDA growth was significant, with a notable increase in digital and physical business [9] - SG&A expenses were reduced by approximately $30 million compared to the previous year [20] Business Line Data and Key Metrics Changes - The reimagined 125 Macy's stores achieved a 1.4% comp performance in the second quarter, outperforming the overall fleet which was up 0.1% [19][20] - Bloomingdale's experienced over 5.7% growth for the fourth consecutive quarter, with strong performance attributed to a great assortment and marketing campaigns [9][25] - Bluemercury marked its 18th consecutive quarter of growth, indicating strong brand performance [9] Market Data and Key Metrics Changes - The company closed 64 underproductive stores last year, generating cash proceeds of nearly $300 million from asset sales [22] - The recapture rate of customers from closed stores was better than expected, contributing positively to overall top-line growth [23] Company Strategy and Development Direction - The "Bold New Chapter" strategy aims to improve the quality of the entire enterprise, focusing on reimagining the Macy's nameplate and enhancing customer experience [10][11] - The strategy includes closing underperforming stores, increasing staffing in key areas, and leveraging AI for operational efficiency [13][19] - The company is committed to being a multi-category, multi-brand, and multi-price point retailer to adapt to changing consumer preferences [16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic uncertainties but remains optimistic about the execution of their strategy [14] - The company anticipates a more choiceful consumer environment, embedding prudency into their guidance for the fall season [37] - Management believes that the current retail environment will lead to more market share consolidation, with Macy's positioned as a healthier retailer [41] Other Important Information - The company is focusing on private brand strategy, refreshing its portfolio and identifying white space opportunities in the market [57][58] - The impact of tariffs is expected to affect gross margins, with a projected increase in tariff-related costs [43][44] Q&A Session Summary Question: Can you discuss the key highlights in the quarter and the drivers of momentum? - The company reported significant growth across all nameplates, with strong performance in both digital and physical channels [9] Question: How is the Bold New Chapter strategy performing? - The strategy has shown positive results, with improvements in customer experience and store performance [10][14] Question: What are the expectations for the operating environment moving forward? - Management expects a more choiceful consumer and has adjusted guidance accordingly, indicating a cautious outlook for the fall season [37] Question: How is the company addressing the impact of tariffs? - The company has embedded a 40 to 60 basis point impact on gross margin due to tariffs and is actively negotiating with vendors to mitigate costs [43][44] Question: What is the outlook for Bloomingdale's performance? - Bloomingdale's is performing well due to a strong assortment and effective marketing strategies, with plans for further expansion [25][29]

Core Viewpoint - Dillard's has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Dillard's suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending January 2026, Dillard's is expected to earn $30.62 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.6% over the past three months [8].

Group 1 - The core index of the China Securities Index for Food and Major Consumer Goods Retail has shown a 2.25% increase over the past month and a 2.31% increase over the past three months, while it has decreased by 1.96% year-to-date [1] - The index is composed of listed companies in the food and drug retail sector, reflecting the overall performance of these companies, with a base date of December 31, 2004, set at 1000.0 points [1] - The top ten weighted companies in the index include Shenzhou Digital (7.19%), Yonghui Supermarket (6.23%), Shanghai Pharmaceuticals (4.53%), and Yifeng Pharmacy (4.13%) [1] Group 2 - The market segments represented in the index include 51.91% from the Shanghai Stock Exchange and 48.09% from the Shenzhen Stock Exchange [1] - The industry composition of the index shows that pharmaceutical commerce accounts for 43.93%, specialized retail for 21.21%, supermarkets and convenience stores for 20.32%, and department stores for 14.54% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2]

Core Viewpoint - The U.S. retail sales showed a general increase in July, driven by auto sales and major online promotions, indicating a rise in consumer spending in recent months, although potential headwinds from a slowing job market and rising goods prices may dampen growth in Q3 [1][3]. Group 1: Retail Sales Performance - July retail sales increased by 0.5% month-over-month, matching expectations, with the previous value revised from 0.6% to 0.9%. Excluding auto sales, retail sales grew by 0.3% [1][3]. - Among 13 categories, 9 reported sales growth, with auto sales experiencing the largest increase since March [3]. Group 2: Factors Influencing Sales - The increase in retail sales may be partly attributed to rising prices due to tariffs rather than an increase in volume. Analysts noted a rush to purchase electric vehicles before the federal tax credit expires on September 30 [3]. - Major retailers like Amazon and Walmart held promotional events to attract consumers feeling the pinch of inflation, particularly for back-to-school essentials [3]. Group 3: Consumer Sentiment and Economic Outlook - Consumer spending has shown remarkable resilience over the past five years, but recent signs indicate that consumers are tightening their belts due to uncertainties surrounding tariffs and immigration policies [4]. - Despite strong retail sales in June, the performance in May and April was lackluster, leading to concerns about a slowdown in spending [4].

Group 1 - The core index of the China Securities Index for Food and Major Consumer Goods Retail has shown a recent upward trend, with a 4.43% increase over the past month, a 0.49% increase over the past three months, and a year-to-date decline of 3.88% [1] - The index is composed of listed companies in the food and drug retail sector, reflecting the overall performance of these companies, with a base date of December 31, 2004, set at 1000.0 points [1] - The top ten weighted companies in the index include Yonghui Supermarket (6.49%), Digital China (6.34%), Shanghai Pharmaceuticals (4.65%), Yifeng Pharmacy (4.23%), and others [1] Group 2 - The market share of the index's holdings is divided between the Shanghai Stock Exchange (53.16%) and the Shenzhen Stock Exchange (46.84%) [1] - In terms of industry composition, the index shows that pharmaceutical commerce accounts for 44.64%, supermarkets and convenience stores for 20.60%, specialty retail for 20.32%, and department stores for 14.44% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2]

Group 1 - The core index of the China Securities Index for Food and Major Consumer Goods Retail has shown a decline of 2.40% over the past month, 6.58% over the past three months, and 6.48% year-to-date [1] - The index is composed of listed companies in the food and drug retail sector, reflecting the overall performance of these companies, with a base date of December 31, 2004, set at 1000.0 points [1] - The top ten weighted companies in the index include Yonghui Supermarket (6.61%), Digital China (6.21%), Wancheng Group (4.68%), Shanghai Pharmaceuticals (4.41%), Yifeng Pharmacy (4.32%), Jiuzhoutong (3.86%), Kidswant (3.41%), Sinopharm (3.25%), Wangfujing (3.17%), and TianKang (3.09%) [1] Group 2 - The market segments represented in the index include 43.94% in pharmaceutical commerce, 21.32% in supermarkets and convenience stores, 20.29% in specialty retail, and 14.46% in department stores [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2] - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or undergoes mergers, acquisitions, or splits [2]

Group 1 - Australia's retail sales in April 2025 increased by approximately 3.8% year-on-year but decreased by about 0.1% month-on-month, reaching around 37.208 billion AUD (approximately 172.281 billion CNY) [1] - In March 2025, Australia's retail sales saw a month-on-month increase of about 0.3%, while February recorded a month-on-month growth of approximately 0.2% [1] - The retail sector in Queensland has recovered from the impact of Tropical Cyclone Alfred in March, but overall household retail spending in Australia declined in April, particularly in clothing purchases [1] Group 2 - In April 2025, the food retail sector in Australia experienced a month-on-month sales decline of 0.3%, while the home goods retail sector saw a month-on-month increase of 0.6% [1] - Sales in the clothing, footwear, and personal accessories retail sector decreased by 2.5% month-on-month, and department store sales also fell by 2.5% [1] - The café, restaurant, and takeaway food services sector experienced a month-on-month sales increase of 1.1%, while other retail sectors saw a month-on-month growth of 0.7% [1] Group 3 - Australia's online retail sales in April 2025 increased by 7.3% year-on-year and grew by 0.6% month-on-month, reaching approximately 4.537 billion AUD [2] - In March 2025, food-related online sales grew by about 4.5% compared to February, amounting to approximately 1.402 billion AUD, while non-food-related sales decreased by 1.1% to around 3.135 billion AUD [2]

Q1 Results Presentation May 29, 2025 1 Cautionary Statement Regarding Forward-Looking Information This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding our 2025 a ...