Q1 2024 Macy's Inc Earnings Call Transcript
Key Points
- First quarter EPS results exceeded outlook, with net sales of $4.8 billion near the high end of expectations.
- Strong performance in the First 50 locations, with a 3.4% comp gain, indicating successful pilot initiatives.
- Positive customer response to new and expanded assortments, including brands like Donna Karan, Free People, and Hugo Boss.
- Bloomingdale's and Bluemercury continue to show growth, with Bluemercury experiencing its 13th consecutive quarter of comp growth.
- Digital initiatives, including the launch of an online baby registry and Marketplace, are gaining traction and contributing to sales.
- Overall net sales were down 2.7% year-over-year, reflecting ongoing challenges.
- Gross margin rate declined by 80 basis points to 39.2%, primarily due to additional discounting for slower-moving warm weather products.
- Net credit card revenues declined by 27.8% from the prior year, indicating higher delinquency rates and net credit losses.
- Continued pressure on the consumer due to inflationary pressures, leading to cautious discretionary spending.
- Weakness in select warmer weather categories and ongoing challenges in the Big Ticket and Home segments.
Greetings, and welcome to the Macy's, Inc. First Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the call over to Pamela Quintiliano, Vice President of Investor Relations. Pamela, you may begin.
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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 first quarter 2024 press release, a presentation has been posted on the Investors section of our website, macysinc.com, and is 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 February 27 earnings call, unless otherwise noted. In addition, all references to comp sales growth throughout today's prepared remarks represent comparable owned plus
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