Consumers are increasingly moving away from "soft luxury" items like handbags and accessories. Even iconic bags are starting to lose some of their resale momentum. The average resale premium for Hermes Birkin and Kelly bags fell from about 2.2% times retail in 2022 to around 1.4% times by late last year.At the same time, there's been a trend toward "hard luxury" purchases like watches and fine jewelry. Part of the reason the jewelry market has been more resilient is because these high end pieces contain pre ...

Core Insights - The company achieved record Q4 net sales, driven by a 34% year-over-year growth in fine jewelry bookings, which now represent 23% of the quarterly mix [1] Financial Performance - The company attributed margin resilience to premium brand positioning and a data-driven price optimization engine that mitigated unprecedented metal and tariff headwinds [1] - Fine jewelry bookings have more than tripled compared to levels four years ago at the time of the IPO [1] Product Strategy - The company shifted its product mix toward higher-priced items within assortments, reflecting sustained demand from higher-income consumers despite broader macroeconomic volatility [1] Retail Expansion - The physical retail footprint expanded to 42 showrooms, with orders from walk-in retail customers growing 61% year-over-year in Q4 [1] Operational Efficiency - The company leveraged an asset-light business model to maintain 4x inventory turns, significantly outpacing the industry average of one to two times [1]

Core Insights - Macy's Inc. has strengthened its luxury-led growth profile in Q3 of fiscal 2025, with Bloomingdale's showing significant performance under the Bold New Chapter strategy, achieving an 8.6% comparable sales increase, marking its fifth consecutive quarter of growth and the strongest performance in 13 quarters [1][9] Bloomingdale's Performance - Bloomingdale's growth was driven by strong demand in key categories such as ready-to-wear apparel, fine jewelry, shoes, and tabletop items, with the addition of high-profile designer brands enhancing its assortment and reputation [2] - Improved execution and elevated service levels contributed to a sequential increase in Net Promoter Scores, indicating stronger customer engagement [2] Earnings Stabilization - Bloomingdale's serves as a critical earnings stabilizer for Macy's, particularly as the core Macy's brand undergoes a longer-term turnaround, with its higher average unit retail and resilient affluent customer base helping to offset softness in mass categories [3][9] Bluemercury's Contribution - Bluemercury also posted positive comparable sales growth, driven by dermatological skincare and expanded brand partnerships, highlighting the importance of premium and luxury offerings in Macy's multi-brand strategy [4] Future Growth Plans - Macy's plans to build on Bloomingdale's momentum through targeted market expansion, continued digital investment, and selective rollout of small-format Bloomie's and outlet locations, aiming to leverage Bloomingdale's as a long-term growth engine [5] Valuation and Estimates - Macy's shares have surged 82.7% in the past six months, outperforming the industry's 62.1% growth [8] - The company is currently trading at a forward 12-month price-to-sales ratio of 0.29X, below the industry average of 0.52X [11] - The Zacks Consensus Estimate for Macy's fiscal 2025 earnings indicates an 18.2% year-over-year decline, while fiscal 2026 estimates suggest a 2.9% uptick, with recent upward revisions in earnings estimates for both fiscal years [12]

Financial Data and Key Metrics Changes - Macy's Inc reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, primarily due to the closure of 64 non-Go-Forward stores, which contributed approximately $160 million to sales in the previous year [23][24] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go-Forward comparable sales up 3.4% [22][23] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][27] - Core adjusted EBITDA was $273 million, or 5.6% of total revenue, exceeding guidance of 3.3%-3.7% [27][35] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go-Forward Macy's saw a 2.3% increase, and Reimagined 125 stores rose by 2.7% [8][23] - Bloomingdale's reported a 9% increase in comparable sales, its best performance in 13 quarters, with net sales rising by 8.6% [15][24] - Bluemercury experienced a 1.1% increase in comparable sales, driven by dermatological skincare and expanded brand partnerships [19][24] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more discerning in their spending habits, seeking curated product assortments and seamless omnichannel experiences [8][20] - Macy's Thanksgiving Day Parade attracted over 34 million viewers, setting a new record and highlighting the company's strong brand presence [12][13] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance customer experience through improved product curation and operational efficiency, with a strong emphasis on omnichannel retailing [8][11] - The company is committed to closing underperforming stores while investing in growth areas to drive sustainable profitability [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and the effectiveness of its inventory and marketing strategies [20][66] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, despite a cautious outlook on consumer behavior [30][31] - Management acknowledged the ongoing impact of tariffs but emphasized proactive mitigation efforts to minimize their effects on margins [49][50] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][29] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [28][29] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [40][41] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [44][46] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a cautious approach to guidance [66][67] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer spending, with strong demand across various price points [82][84] Question: How is the credit business trending? - The credit business has seen a significant increase in applications and revenue, indicating strong customer engagement [85][86] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with updates expected in the fourth quarter [91][92]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][26] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 stores reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][19] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [8][20] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance its product assortment and customer experience, with a commitment to bringing new brands and categories to the forefront [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base and the effectiveness of their strategies, despite acknowledging a more cautious consumer environment [20][30] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, and is optimistic about the fourth quarter performance [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][28] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [38][39] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [42][44] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in their strategy and performance, despite a cautious approach to guidance [63][64] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong promotional strategies in place [80][81] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details expected in the fourth quarter call [89]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [6][25] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 locations reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][18] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [7][8] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's is enhancing its product curation and customer experience, aiming to attract a broader customer base and improve store performance [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and noted strong visibility on controllable factors such as inventory discipline and improved customer experiences [19][20] - The company anticipates a strong holiday season, supported by effective marketing campaigns and a compelling mix of products [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [18][28] - Macy's plans to return $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [26][27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives? - Management noted positive growth in Reimagined 125 locations, with consistent traffic and improved average unit retail (AUR) [35] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include a diverse product assortment, a balanced omnichannel approach, and shedding underperforming stores [37][39] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a more cautious guidance approach [46][47] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong sales performance expected [52][53] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details to be provided in the next call [56][57]

Financial Performance Highlights - Macy's Inc's comparable owned-plus-licensed-plus-marketplace (O+L+M) sales increased by 3.2% compared to 3Q24[8, 44] - Adjusted diluted earnings per share (EPS) was $0.09[9, 10] - Net sales were $4.7 billion, a decrease of 0.6% compared to 3Q24, but increased by 2.9% excluding the impact of store closures[40] - Comparable owned sales increased by 2.5% compared to 3Q24[42] - Go-Forward business comparable O+L+M sales increased by 3.4% compared to 3Q24[46] Brand Performance - Macy's nameplate comparable O+L+M sales increased by 2.0% compared to 3Q24[14, 49] - Macy's Go-Forward business comparable O+L+M sales increased by 2.3% compared to 3Q24[14, 49] - Bloomingdale's comparable O+L+M sales increased by 9.0% compared to 3Q24[17, 49] - Bluemercury comparable owned sales increased by 1.1% compared to 3Q24[24, 49] Operational Improvements - Inventory increased by 0.7% compared to 3Q24[29, 50] - Order-to-ship days improved by 11.3%[29, 30] Guidance - The company expects FY25 comparable O+L+M sales to be approximately flat to +0.5% vs FY24 and adjusted diluted EPS to be $2.00 to $2.20[62]

Company Overview - Mytheresa is a luxury e-commerce platform founded in Munich in 1987, transitioning to online sales in 2006, offering a curated selection of up to 250 high-end brands, including Gucci, Prada, and Valentino [6] - In fiscal year 2025, Mytheresa generated revenues of 988.5 million euros [6] Leadership Changes - Francis Belin, a former executive at Christie's, has been appointed as the new CEO of Mytheresa, effective January 1 [1] - Belin's appointment aims to sustain Mytheresa's strong global growth trajectory [1] - Michael Kliger, the previous CEO of Mytheresa for 10 years, will continue to oversee the overall strategy of Mytheresa and other brands under LuxExperience [2][5] Strategic Goals - Belin is expected to leverage his extensive luxury experience to drive Mytheresa's next phase of global growth and enhance its position as a leader in the luxury market [4] - Kliger expressed confidence in Belin's customer-centric approach and collaborative leadership style, which are seen as vital for the future of Mytheresa [2] Recent Acquisitions - LuxExperience acquired Yoox Net-a-porter (YNAP) from Compagnie Financière Richemont, trading a 33% stake in the combined business for 555 million euros in cash [3]

Company Overview - Tenzing Global Management initiated a new position in Signet Jewelers, acquiring 80,000 shares valued at approximately $7.67 million, representing 5.39% of the fund's reportable U.S. equity assets [5][6] - Signet Jewelers targets individual consumers seeking engagement, wedding, and gifting jewelry, focusing on the U.S., Canada, and U.K. markets [1] - The company operates over 2,800 stores and kiosks across North America and the U.K., leveraging a portfolio of well-known jewelry brands and an integrated omnichannel strategy [3] Financial Performance - As of November 14, 2025, Signet shares were priced at $101.01, reflecting a 5.22% increase over the past year, although underperforming the S&P 500 by 7.57 percentage points [4] - Over the past ten years, Signet's shares have declined by 12%, resulting in a compound annual growth rate (CAGR) of -1.3%, while the S&P 500 has generated a total return of 290% with a CAGR of 14.6% [7] Market Position and Challenges - Signet generates revenue primarily through the sale of fine jewelry, watches, and diamond services, facing increased competition from e-commerce platforms and the rise of lab-grown diamonds, which exert downward pressure on margins [2][8] - Despite these challenges, company insiders, including CEO James Symancyk, have been purchasing shares, indicating potential confidence in the company's future [8] Investment Sentiment - The recent institutional buy of Signet stock is viewed as a bullish signal, particularly in conjunction with insider purchases, although the company continues to face significant competition and historical underperformance [9]

Financial Data and Key Metrics Changes - The company reported a record quarterly GMV of $520 million, representing a 20% increase year-over-year [5][14] - Revenue for Q3 was $174 million, up 17% compared to the previous year, with consignment revenue increasing by 15% [14][15] - Adjusted EBITDA was $9.3 million, or 5.4% of total revenue, reflecting a 380 basis point increase year-over-year [5][16] - Free cash flow for the quarter was $14 million, a $12 million improvement year-over-year [16][19] Business Line Data and Key Metrics Changes - Direct revenue increased by 47% year-over-year, accounting for 13% of total revenue in Q3 [14][15] - Average order value rose to $584, a 12% increase from the previous year [15] - The take rate decreased by 70 basis points year-over-year to 37.9% due to a higher mix of direct revenue [15] Market Data and Key Metrics Changes - The company noted a significant shift in consumer behavior, with 58% of shoppers preferring the secondary market and 47% considering resale value before purchasing new items [4][5] - The active buyer base reached over 1 million, marking a new all-time high with a 7% year-over-year increase [15] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational efficiency, and customer service [6][10] - Plans to expand retail locations by adding one to three stores per year, with a total addressable market of over $200 billion in the U.S. [7][9] - The introduction of AI-driven tools like Smart Sales and Athena aims to enhance supply acquisition and operational efficiency [6][10][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year GMV of over $2 billion, driven by strong market demand and operational improvements [4][19] - The company raised its full-year guidance, expecting GMV in the range of $2.10 billion to $2.11 billion, reflecting a 15% increase at the midpoint [18][19] - Management highlighted the importance of building trust with customers and enhancing the resale experience as key to future growth [10][62] Other Important Information - The company has reduced total indebtedness by over $86 million since the beginning of 2024, reinforcing its commitment to deleveraging [17] - The proprietary AI-enabled product intake process, Athena, is expected to touch 30%-40% of all items by year-end, improving efficiency and reducing costs [10][57] Q&A Session Summary Question: Confidence in Q4 GMV growth guidance - Management noted strong momentum from sales, marketing, and retail efforts, with early signs of success in referral and affiliate programs [23][24] Question: Guardrails for next year's growth rates - Management indicated a medium-term growth rate expectation of high single digits to low double digits, with potential for higher growth in the short term [26] Question: Update on DropShip initiatives - Management stated that this year was focused on testing and learning, with plans for meaningful contributions from DropShip in the medium term [30] Question: Revenue growth drivers - Management emphasized that revenue growth is primarily driven by increased supply coming through the door rather than processing speed [32] Question: Competitive dynamics in the resale market - Management highlighted the company's market leadership and strategic advantages in expertise, data, and customer trust [38][39] Question: Q4 EBITDA expectations - Management expects continued operating efficiencies and leverage in operations and tech, driven by AI initiatives [41] Question: Marketing investment and efficiency - Management confirmed increased marketing investment to drive growth, with a focus on balancing growth and profitability [81]