Q2 2024 Macy's Inc Earnings Call Transcript
Key Points
- Macy's Inc (M) achieved better-than-expected earnings results, with adjusted EPS of $0.53, significantly above the outlook of $0.25 to $0.33.
- The first 50 Macy's stores posted a 1% comp sales gain for the quarter, outperforming the total Macy's nameplate by 460 basis points.
- Luxury nameplates Bloomingdale's and Bluemercury delivered strong gross margin expansion and better-than-expected SG&A.
- Bluemercury achieved its 14th consecutive quarter of comp store sales growth, posting a 2% gain.
- Macy's Inc (M) is implementing women's shoe and handbag staffing tests in roughly 100 additional go-forward locations this fall, based on the success of the first 50 stores.
- Second quarter net sales of $4.9 billion were slightly below the outlook, with total enterprise comps down 3.3%.
- Macy's nameplate net sales declined 4.4%, and comparable sales were down 3.6%.
- The consumer discretionary environment remains challenging, with customers becoming more discriminating due to ongoing macroeconomic uncertainty.
- Men's apparel, handbags, and home categories continue to face weaknesses, requiring further adjustments and investments.
- Inventory levels were up 6% year over year, which was above expectations due to second-quarter sales results and the decision to invest in areas of product strength for the back half of the year.
Greetings, and welcome to Macy's, Inc., second-quarter 2024 earnings conference call. (Operators instructions) It is now my pleasure to introduce your host, Pamela Quintiliano, Vice President of Investor Relations. Thank you. Please go ahead.
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Thank you, operator. Good morning, everyone, and thanks for joining us. With me on the call today are Tony Spring, our Chairman and CEO; and Adrian Mitchell, our COO and CFO. Along with our second-quarter 2024 press release or presentation, has been posted on the investor section of our website, macysinc.com as being displayed live during today's webcast.
Unless otherwise noted, the comparisons we provide will be versus 2023. All references to our prior expectations, outlook or guidance refer to information provided on our May 21 earnings call unless otherwise noted. In addition, all references to comp sales throughout today's prepared remarks represent comparable owned plus licensed plus marketplace sales
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