M - Earnings call transcript Q2 2018

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Operator

Good morning and welcome to the Macy's Inc.

Second Quarter 2018 Earnings Conference Call. Today's conference is being recorded. I would now like to turn the conference over to Monica Koehler, Vice President, Investor Relations and Finance. Please go ahead.

Monica Koehler

to Inc. welcome and morning, the Macy’s Good conference and the outlook to discuss year. quarter earnings our second for call scheduled the remainder of

cause and commission. uncertainties of detailed A to in the with results mentioned operations, our and that from call website, company’s uncertainties contained differ call transcription of providing our the two the beginning discussion or forward-looking adjusted concludes. to Joining Jeff Keep assumptions subject and reproduction net replay we exclude the of is our Paula earnings www.macysinc.com, call mind that of exchange the made Litigation the benefit actual with amounts filings other impact consent that In securities could Chief Chief discussing expectations results today. in of is these and factors materially statements Chairman Reform A provision charges this Price, the on loss be available Act These hours the Any in following. to us and gains be on subject settlement retirement adjusted or of approximately early and of and plans debt. The costs, our share are Executive impairment risks all the Securities call Officer. per harbor are today of statements XXXX. after Financial will safe statements defined and the Officer; forward-looking diluted without associated the on and Gennette, income other will are prohibited. the Private

turn during taking after We call in of as over Jeff. regarding our financial look the investors website. I’ll used section well to the our With others additional forward this find information on important measures, can non-GAAP that, remarks. questions to call You earnings prepared your release and our as these

Jeff Gennette

thank Thank call. joining you, everybody Good the for morning, Monica. you and

also all Hoguet a Financial and Paula make industry. in First, I Inc. early has Macy’s as Paula much Chief that help Macy’s is Price. exceptional hit to strong again, the the she to great to team want joined for Inc. me and addition running. the deserved thank leader Officer has introduce want is I for to to July. smooth Paula doing before and Karen for a she her retirement. partner Karen an been transition is a this ground the

the to I’m second this So, and updated share you quarter, perspective well guidance, as your for up take going line we’ll will the then of morning then the quarter, on a through questions. the Paula as details open

in quarter. the in that in saw Inc. release, As improvement third growth we’ve of another and sales quarter the good ongoing the mornings that and this you to had customers our reflects energy strong we of saw consecutive our business have Macy’s XXXX. of strategy. early team, innings, press about This quarter was feel comparable progress fourth the but and positive about the the focus feel It I is made, our response first

shifts in and quarter we started, it we release, some with note or first helpful. half last provide my will our we calendar XX-week XXXX comments calendar. press you and Before views year's both promotional said of weeks in last in Paula, as think in want where second Today, get I those to we caused our is

same and So, level want we give gauging strength of the this how we’re business detail. is of the to the you

comparable the licensed up X.X% the basis adjusted owned second shift quarter, Family on but X.X% for on For an sales and plus plus the to basis, for first, an from quarter were owned up were sales the licensed comparable second the when quarter. Friends

half per of up plus per X.X%. of basis adjusted share the $X.XX quarter sales were year. performance, on comparable owned on for licensed year, guidance continued the second year. $X.XX the for plus strong the both EPS up, Based of the and of we half first the delivered first healthy detail we sales the our first half We are earnings For an for results and annual sales and raising to sum but comparable guidance anticipation X.X%. are Paula spending, the raising licensed around X.X% will owned it guidance, for to share consumer to execution give more

North momentum We are are $X.XX heading range. where we will by that XXXX. the today, every our about back half improving points into the improved $X.XX by annual dialing is around of in Star of EPS friction that a and customer heart about of At also Macy's. I’m of EPS way, is built performance raising The loves I’m the things the good out we be and journey, up Overall, $X.XX anticipate the feeling step encouraged and our to Strategy the have she customer. on the focus consistent ticking

for business As e-commerce a robust I’ve our said is and before, recipe mobile stores, a success healthy powerful app.

It’s us. a another wants to led we across much for brick-and-mortar great customer see This improvement anytime but Our improvement anywhere the trend trend of the especially she business. improvement and was of a saw quarter also by shops our stores, encouraging with GrowthXX experience fleet.

more another clocked app first July. the half versus year of very XX% double-digit quarter including growth, And a we of with on increased mobile continue our Sales year. were see strong app. the business digital Macy's than engagement in last up to Our

focus drive to And quarter. the and to in operationally, opportunities first organization half and and retail in unit the execution to edit X% year. the quarter. a with improve to fashion up was throughout encouraging emphasize we are on well. in It merchandising customers an our We sales heightened was Average flex the elevated of the nearly our additional assortment continue through responding to respond initiatives continue see

Macy's all the and Across three the brand, like our at store, price At that’s all through above floor in The men's, the newly continued Macy's, forward regular strong cosmetics. on are and all saw all of this All year-end. second opening. a quarter performance quarter to turned categories. every and families Bluemercury to a we’re brands; after we shoe up activity performance. laddered strong across total and in renovated of our all completion momentum of particular Bloomingdale's XXth and Bloomingdale's, business, we across good renovated seeing trends really geography, expectations handbags, of sell-through And areas gain first by performing the renovation the Bloomingdale's in to look has flagship Street of strength fall

and New of stores both growth Macy's tourists are continued vibrancy within sales and to to love Yorkers freestanding the comparable perform Bluemercury Bluemercury and the iconic in alike we this see pleased store. shops stores. well

five We’re now to initiatives. strategic going to Macy's the turn

Broadway new offer now the and been members. positive change the platinum our classes preview we a these customers meaningful to which the a the that of more have in And of that members. that L.A., with last with platinum launched rhythm million than Francisco, We’ve pleased program There quarter. customer. the just at we are able Miami, in exclusive the launched York cooking handful bronze offer platinum a behavior offering to sections tender very VIP we’re the local First, the loyalty experiences Macy's. chefs tier has New fireworks, new San are level, to We best X at we tier, of was These shows, we’re examples are with experiences Access of customers. last our exclusive year. a can unique hit neutral

new program, the loyalty the spending more. best into coming program. customers And customers are are within our So,

expand the throughout to Rewards will program We refine continue and year. Star the

our backstage the XX second of stores the year. for expansion half the of continuing XX backstage pace. in is opened a Next, at first in We total quarter opened

to teams then merchandise ripple carve XXX This from complete handling sales stores this been to will in into Adding we our Coast it the does on productive, backstage. new openings and the ongoing track on significant need and store we to a brand. and backstage doors. XXXX create effect well third the all makes quarter. relocate work new now feel existing with the exciting Backstage on-mall have see since be our Based the and an a space of backstage off-price Backstage we We’re premium the experience, This year. of store good construct bring departments minimal will the lift operation, gives Opening about customers expansion within strategy. to is disruptions. some a more our to locations, and of the by And West Macy's and the XXXX process end complete includes date very to out customers

vendor already a This customer that and interest. significantly our or have is love. known and Next that from Macy's.com private up, brands addition adding It We're online know on brands selection and is of includes quarter, direct will new to on national on Macy's we for, our products the of assortment. of strengths plus fourth offerings. merchandising expansion categories our where access expanded By our great selection customers our will track. more the customers building is also signaled

quarter. store This and Buy almost Pickup end is in be to pickup This Next third BOSS doing Ship second XX what Online in is and the of program. of expansion will which BOSS well. call stores expanded includes the Store Store call every Online the to we or BOPS. we the Buy quarter our store in by

And every also customer pickup at and the with your quick. the store improve complete programs, service make stations support of refining to experience. are to rollout in to nearly BOPS service, both the We’re easy we

performing pleased as of to GrowthXX. report initiative had expected in we strategic the half the trend and fifth are the that our improved Our in year. in XXXX, stores first the I'm leave brick-and-mortar GrowthXX is And

in are customers see that performance what making outside GrowthXX, changes and which our batch every is and that early with satisfaction give is few appreciating of an merchandise are great, have stores the to investment, confidence We right can making. destinations. tells The The and the strong I the our in GrowthXX and be us us the noticing almost and investment of over I'm customer next is shopping the also the teams we’re treatment will encouraged are right, stores see. the XXXX. scores paying committed we're customers up by improvement in store give past I the engaged, profitable very these get thesis line win. that productive, supports vibrant, look these months off, The stores that XX visited talent enough to in our GrowthXX stores stores and to

the across to investments stores GrowthXX, experience. While we on customer also intense have making the this improve fleet the focus in we’re

mentioned, going more are Your As they and fashion, Mobile edited every store. and allowed more being to assortment, Service At are a are almost be localization. Checkout in Stores more receiving Centers

ticket XX We’re space. importantly, to virtual transaction put it half us in third and reduces activating of allows roughly also reality increases big quarter significantly size, the via the our locations in returns. furniture And amount

in investment our retailer Beta, a and In in the to experiences exciting the regular quarter, at scale a announced new We fresh basis. bring to are committed us to market our powered second allows technology Macy's stores that we on faster.

in market opportunities markets We’re excited content two of be bring will STORY, in good Atlanta, the one quarter Between Angeles. and and acquired fall. impact our by first in about the experiences feel to in in the new market we the which and up Los our Macy's One and we new the opening to stores.

also had quarter. good second the back start school at to the We season to the of a end the

Our big you thriving. I the want has wouldn't teams. momentum ever. business campaign a and solid performance off the who every to By our who to both improvement which shine with resonated will and see kid’s up at is grateful score brand, to to. over year our off, brand. customer's colleagues our GrowthXX in and business net stores are engaged day. Their work all serving in paying our improved The our That’s quarter. than paying we we to dedicated by proud and we’ve into hard seven for integrated points our to on I'm work category, by with strategy the the are and And versus without and support the more our this Year-to-date, have in momentum XXX,XXX carry promoter by effort customers. geography points. third XX business, merchandising attitude that thank marketing full people results time our our customers towards is We is colleagues the is motivated say and of improved last all almost

the our the quarter plan. XX% nearly growth in second will incentive to receive payout For of a path colleagues

stake seasonal a As a in success. to colleague win to every our part-time, and full-time, has play, role

And the with performance. to discuss optimistic the work call to We our financial progress, and are I company future. about our Inc.'s initiatives, in look made reengineering merchandising, turn our as the only underway at that, machine, to on Macy's about Paula our but of marketing still and journey, the early I our I'm feel that’s strategic we’ve over good culture, going

Paula Price

Karen Macy's to updating you, of I progress have a journey. to and of financial for be appreciate am Inc. her the and congratulate Inc. on retirement, that I great sure too a at Thank our so to truly team her like part would the the she her I’m to Macy's support. Jeff. that put I forward you looking into pleased has thank on effort making I beginning

impact last charges the early my that on associated few I will we by the of I for Sales as or business. I quarter, second and financial over expected. and other to better our mentioned, gains last negatively billion, benefit year. licensed And adjusted some some you XX basis on event we're impairment, cost, were commentary with into quarter very quarter defined quarter which the observations was certain losses measures quarter plans, settlement perspective the the plus my will year. $X.XX retirement in remind includes provide debt. compared and of The shift an and on Jeff detail this year comparable Friends of was Family second year, impacted on thinking the second share the of the also how than first of points the As a up and offer then, basis, about promotional owned early

of in year. shift, to XXX impact, impacted Friends we comparison meaningful metrics negative the a second to the estimated appropriate prior owned first mentioned, Due as basis shift an of Family the plus quarter and Excluding basis the positively second materiality on sales the increased Jeff are comparable where facilitate an quarter. points providing quarter the first X.X% licensed and which half due negatively, to to more the this

licensed X.X% the year. basis, on the in stronger X.X% of Comparable much an the sales comparable we an of on first the and up were for basis first plus of expected sales at year. half up than half were X.X% up For year, owned total, owned, start the the

and strategy executions our Star strong driving North Our are improved performance.

brick-and-mortar XXXX our Our quarter digits. of continued digital grow in business continued began momentum double positive that and fourth to the business the

than tourist confidence strong in Friends spending. second XX% the also benefiting up first the are increase shift. growth tourist and over consumer part less due We Family including In from year, quarter, spending, seen quarter sales the international were and international our X% the in last in to

strong in all year, spread we saw For markets X% in strong tourist a Sales across the fine our Bloomingdale’s, the where luggage were in and than first mattresses fragrances, broad-based The while and across international half the Macy's, increase of furniture, expected. top kid's sales. also across active performance dresses, sales. Bluemercury, geographies men's performing all also lower jewelry, country. was strength our categories was delivered

reflect price million were loyalty up For higher program, last our of These set This of during inventory per year, a of strong enhanced with up in-line difficult strong the XXXX inventory We unit management. an higher last star customers year. points year, as comparison. down the and balances higher inventory in the half in much-improved it penetration rewards we sales XX transaction of or well than margin were Credit units the usage X.X%. points helped usage, $X.XX our quarter was The more mentioned, for than regular new Jeff of our basis from benefiting clearance in revenues decline heightened first loyalty selling performance. inventory goals and rate our engagement total points. quarter driven our increase first X.X%. proprietary points than year pleased on card of of basis in cards billion with the healthy excess quarter metrics was as $XXX portfolio. ended credit XX.X%, of the program. was our basis. the retail Average XX the creating was due is XX% quarter year, last to disciplined transactions XX that net the position cycled This was comparable by inventory card are Average as in quarter, second with down the sales, is up and this XX.X% XX from basis or basis a as the we we growth the less year-over-year best Gross by

have in capture Additionally, the we greater were for we comparable be to due By flow will at week the those expect fact year inventory a prepare end calendar the one of shift year, into as fiscal basis deeper quarter this be to and week back-to-school last end the holiday merchandise on expect fresh impact versus up however, year, The the to inventory our on season. XXrd season shift, the needed to of timing when third therefore down a calendar sales. the receipt again. we we

managing We about quarter to so receipts. last than continue inventory $X the year. fulfilment merchandise higher customers On across Further, SG&A channel, sales, was last positively our our year. was a disciplined our expense fresh or compared as gross to react be doing basis, to and XX.X%, processes rate billion margins. benefits XX.X% million expense SG&A $X.XX in

accelerate in growth, investments. invest to strategic to taxes our these our help continue fund initiatives lower continue and We to our

recognition in higher sale million, were during property and that other gains XXXX last in the including than we from deferred $XX closed transaction $X that the sales quarter. of gain second Asset closed continued the quarter million we the year, Brooklyn

in $XX impact Benefit EBIT approximately quarter last China $XXX to of approximately year. to were million asset non-cash same which EBIT We million million last million to of plan and and of XX% Proceeds the year, booked last which amount Adjusted million, million we $XX half $XXX business, compared in was first the was shared in which we than impairments, our quarter, $XXX $XX compared year. pension in quarter. year, $XX compared million year. the gains $XX $XXX changes compared restructuring, income last million, year. the is of included other also year. last million last the made from settlements Consolidated we last to booked was asset the $XX costs, quarter year-to-date, million higher as were sale For to sales the million, $XXX as

million basis, was And asset XX% the Excluding repurchase $XXX EBIT year. was million debt million, This with This as sale half XX% the the Interest year, quarter last to was million, quarter. $XXX compared $XX market $XXX XX% of of or $XX of premium quarter. million excludes year. $XX in associated year first million completed open pretax income. to same of $XX $X last compares expense in the the compared debt charges up gains well, for $XXX the the on in in XX% the million of expense increase. the million EBIT to million last in Tax quarter a or was

the We income also $XXX year. Adjusted $XXX benefited in the state in This million, Net year. higher tax XX% last net million. income million the was quarter was is quarter $XXX compared of million to resolution certain last examinations. or from than $XX

million the on first the this $XXX of to compared $XXX basis was adjusted year, last half million, For income year. net

the $X.XX for operating last basis, When per compared last $XXX well, Diluted year. of year, million were million year same and were per in income were earnings gains quarter, compared of as adjusted million share of asset consistent quarter, was for year the $X.XX to of first quarter, well, compared the share earnings year. Cash prior of to to $X.XX sale compared per more from the in were first last the asset $X.XX than $XXX of year. earnings the flow Adjusted in year, excluding activities year. last in last earnings share the double $X.XX $X.XX was half half $X.XX the sale per this on with share year. gains adjusted first the as net the half net to $X.XX Excluding $XXX income the adjusted

second sales, also We in proceeds We cash, $XXX to expenditure than $XX prior with in $X.X year. $XX year. compared million in received had quarter and from more capital billion more million asset less, invested last the ended million

the initiatives, you store are direct we As GrowthXX of from stores, performance program, pickup, Rewards Jeff, assortment. our pleased key heard very the and loyalty the vendor growth in Star Backstage, enhanced the our strategic with

sales a the earnings for and As raised strong guidance performance, again result the have we of first year. half

outlook. than traction confidence with healthy expected combined gaining a are to the We earlier environment consumer this our us we gives spending and increase

earnings for owned half strong for seen total revised the This are of had assumptions the in are X% from our up assumption with include translates $X.XX, on year we with Comparable strong is year, previous following. week very which be flat plus X.X% considers last quarter the Adjusted of to to for now Our licensed up also for expected Key X.X% guidance sales. consistent the share X.X% basis sales but behind $X.XX having $X.XX. to one now cycling our XXXX X.X% from to is fourth year. back full-year to the a the per an full-year. is extra sales guidance now to up to the of growth that $X.XX to diluted spring, expected be

in XXXX up assumed the because that fall. the the we And last to we gross fall investments fall delivery second the experienced percent SG&A higher increase increase rate due is not than quarter be merchandise our third in the will in last. means expected the sales we merchandise support in this of anticipate and growth. in We launched we October in penetration. expect year, margin than the this XXXX since more in in offset loyalty margin program anticipated to year. gross up to is be to for impact business, associated the comparison. last as year half rate rate enhanced increase expect to This cycle higher for a are margins the a gross our compared delivery This our as strong slightly fast-growing expected business, sales expense our to the be below on margin Spring which smaller of increase fall we of slightly the Further, digital margins with in the fully past XXXX this at dollars be expense year, year ramps our XXXX,

on to benefited less in million the fourth the because this week one card repurchases quarter is $XXX to prior last expect associated the strength to than Interest now the premium of from is of any debt be We be date. due than debt than to year. excluding pronounced with expense, reduction. assumed the performance third million in to now quarter to debt be quarter charges more acceleration which approximately our revenue is expected $XXX lower million, guidance, $XXX fourth Credit

tax XX which annual expected XX%, rate now prior is expected Our points lower guidance. to than be basis effective is

The provided other in unchanged. May assumptions remain

it pleased start from the of well-positioned year enter our Nonetheless, is the we of back a year expected, our strategies the to we While the for ability capture we benefits us. half great lot strong ahead to with earlier that growth. are than work we and to of know have

I it see to Macy's want I hand my observations few Jeff, of I what I at Inc. Before about share early a see back growth. over to

initiatives and and online, potential. through positively and mobile strategic in traction see gaining financial consistently up app. Our are our showing stores, the our I results are

and opportunities technology. unleashed We have already to cost by be beginning and that analytics productivity are

iconic throughout fund I who some back are profitable you one colleagues Our my turn motivated business I’ll the in healthy Jeff in our look future it flows, aligned to and to meeting the forward weeks. to with highly this all closing our on growth. and company strong need that, a have generated to to the see these over I organization business. flexibility of balance And, path over we coming many for sustainable sheet, reinvest give we cash that us restore remarks. And

Jeff Gennette

Paula. Thanks,

environment. before operational me spending open amplified questions, We're the things a up. let up which strong performance, sum delivering by So, healthy is we for line consumer

drove third has Our initiatives business brick-and-mortar and traction, are the growth. sales strategic strong meaningful The Strategy gaining shown consecutive our with North quarter business of and consistent growth. Star digital continues improvements comparable

We heading will up have I the that, and questions. open the the and year. momentum with half And Paula back your into take line of we’ll

Operator

Boss, We Thank will Please our [Operator Matthew go-ahead Instructions] from you. question JPMorgan. now sir. first take

Matthew Boss

Thanks. tourist down you you're underlying sales, the mentioned sales you Jeff international help seeing us And sequential points given, versus can about roughly I same-store your are improvement you the first a back how specific in consumer saw the first think quarter? initiatives? half between XXX company in maybe break thinking what just basis stronger and half slowdown also, you

Jeff Gennette

in spending across So, that, Matt good our think buoyed I half first sentiment of retail. trend certainly strong consumer with the and of the business was a the all

of see strategies. And so, I believe to related think definitely of we that’s in in a that gap what to a big market, XXXX but our performance look really XXXX piece at general narrowing. you narrowing And Macy's is our trend, when were you versus our, I that gap

And we're us. across care of to customer that’s related to, and how that anyway she a going are with really so, strategies our take shops

So, strong with really the digital growth. happy

pass second We continue in in quarter. the much sales, both in XXXX of to to more it’s We're a but double-digit there, mobile. we're lot into investment getting that. billion invest the growth mobile there. $X going first and And Putting than

big in most our saw business the XXXX really of the uses strengthen customer across to us, app that the that’s we You to is And is strategy in really going difference it is mobile the the what’s trends. customer store but and and continue about for real we're reviews, really out excited firming how gateway a improvement that, understanding the of navigating know is fleet versus brick-and-mortar brand, the happening Mobile part checking the I’m XXXX Checkout, up that in for brick-and-mortar.

performance I into tourism international first XXXX. and To I is that and expect is And in look in at of there first your Friends in excited Macy's we plates. tourist want to of the what very the think of that. so what happened international quarter, about what up and or was happened a shift large the half what X% look So, to international customers of and at excuse back us which Macy's second have as about half a really look you at we Family, happened international that also Bloomingdale's at to question, when is carry tourism, tourism result me the

So, we year expect that Spring half international the around up that tourism the will remain back of level. in

Matthew Boss

then just Great. follow-up a the P&L. And on

front, your continued see year expense should expense offset we in about offensive thinking initiatives front about or operational the we do to on the year, step-up I you accelerate as efficiencies think also next into as be guess a SG&A On this? next

Jeff Gennette

We're looking at that right now.

of make looking planning, lot where opportunities have expense. obviously deal strategy cuts to and We a we're but doesn't that that our the there’s we great overall the those sure we’re extraneous haven't finalized at in of that you we’re on cost are appropriate want done customer that that making fueling, we're out inefficiencies at, value, customer like that those wouldn't We’ve XXXX remind control. making all but voting good sure I a just with we is getting our

sales We’re on care right year, of a profitable to of expects a much we’re we us. taking that what’s focused totally and out drive linear and even were organization then doing customer last

Matthew Boss

That’s great. Best of luck.

Jeff Gennette

Matt. Thanks

Operator

sir. Paul next our go-ahead from take Bank. now will Trussell, Please We Deutsche question

Paul Trussell

a takes all raise puts have of so we below Certainly, if enquire I to you sales increase? the that we as wanted but the walk what’s the us think your if on also all walk of just [ph]? led line I mentioned items, and revision higher the components and the line can through just for a think about higher see the you and expectation, year, credit of the understanding incremental could led morning. to just to the Good EPS we about confidence kind you revenue top full asset through

Paula Price

Okay.

earnings for guidance in our performance in as the as our our fall strong So, the full-year confidence well first increased our half, and expectations. sales reflects

our half for X.X% last X% year. so, our And is very we’re strong that the also on sales this considers fairly consistent owned from a performed quarter fall cycling fall with the guidance And strong up than is but basis. where to in better performance we a expected, it we licensed in comparable first

$XXX the million that. for did we’re than be expense guided that’s $XXX our and expected. the we We the is at making repurchase credit our on against and up our continued year, we same interest that also revenue gains sale to to based asset debt And earlier million down, and progress

and in continuing business so, investing do we So, we’re the and season. of so already year, that the we in stated we’re at effect, as fall are the the seeing to beginning

which business, our impacted all gross margin loyalty will example, in in year. our initiative. investments rate then our increased delivery ramps our in due the strategic with gross loyal And program growing digital our reduction fall also and customers. expense margin in along reflected guidance our our initiatives, For enhanced our up the to will fall be season tax strategic our impacted fall for be most be for SG&A while and by will in this impacted by And in is

Paul Trussell

should about think color. can just helpful or you. how drivers UPT composition think balance over as Thank the and we transactions well? year that you if of discuss how AUR That’s we comp, And meaningfully, about about as the of think the just was you the the in up gain of

Jeff Gennette

So, of I shape in is we you as the XXXX residual sell. when on at the look in our inventory in of lot of say season and great a year, inventory Paul the brought first that is XXXX from mentioned, holiday so that that, half didn’t Paula would

AUR would of liquidate to had clean of I the We We XXXX inventory. in reflected tell really Spring So, a in XXXX. in you that. came that lot the

cycling through – and that. So, we were cycle

that in making the what she in her, stock sure really that’s follow did. by parity option the gave call can receipts. tasty, of We So fashion what the lag that we stay sales front that we was us of and of sure would that so it, our making new in that of we wants which she expecting customer us, terms to put was close really with

that’s what what analytics saw and half able first the drove ever, farther you the the we're along out and demand, So, X% that, make and customer more of rarely found price, AUR to first of the markdown able we’re we to in regular lot than is selling, increase a almost we’re pricing year. gauge of

that’s completely beat what expect changes, in keeping I AUR, regular more you and of our fashion year. the into selling balance to selling keeping there, to So, take customer inventories and price, line, saw where the sync the more our demand seasonal

Paul Trussell

luck. of Best you. Thank

Jeff Gennette

Thank you.

Operator

question next our take from now Bank will ahead. of We Hutchinson Lorraine Please go of America.

Lorraine Hutchinson

morning. good you, Thank

inventory week an does receipts in much second XQ? to address on the spoke that about your extra benefit quarter, back-to-school call the You in comp week earlier how extra

Jeff Gennette

think We it’s slight Lorraine.

I think what’s in what important in is understand happened general. to just the of just month July

month definitely of performance a comp was July the So, strongest from our quarter.

well a accelerate because were with all customers lot shift receipts. back there the strong better the in receipts much and to fresh were played ready because back-to-school going other business. we digital for had so, had we with July strength position we and Friday a earlier, be calendar of in where in wanted goods. that businesses We some but of great and just of And us, ready we inventory back-to-school were certainly a we obviously had Black

dresses, look you men’s, kids as jewelry, you fine when So, mentioned. look at certainly

those a good we had in our because lot customer. a freshness performance July there inventory So, and and the of the season for had

Lorraine Hutchinson

thinking where stores about was running of you. the the and through or of in you’re half? up when throughout the Thank the And persist entirety could that that the GrowthXX, these July one quarter second back drivers completely

Jeff Gennette

colleague talent, in in way good capital on of you we the those with happened a lot play GrowthXX credit when of the was is from right deal the beginning that talent, and give they look the a on year. with for the the now into spring the what of expenses. at focus frontline got are at did The great we coming Yes, I made through efforts season look and organization the went that GrowthXX you and all things all traction what that. stores of management changes talent,

So, that are the levels, second really third doing all to That’s we’re furniture in online quarter. are the in levels, came rest those we've improved coming in rooms what going what really with backstage, with changes and lighting now. that, surface to happen respect that right we’re doing with but quarter,

the as initially GrowthXX mitigate half we disruption that do fourth coming first initiatives, in we’re to the possible, as also some, are traction out think that help the is well many also But third looking quarter that getting business. of anticipated of year, new we’re will stores, night going to the there now. tell We’re capital that all that of we those the but that is to particular our better I will as quarter us but as that’s half our continue and in of those back changes going much of but other with going work with year, you business to do at into the cause

Lorraine Hutchinson

Right, thank you.

Operator

sir. go now take our next will Brian from Tunick, Canada. ahead, We of question Royal Bank Please

Brian Tunick

maybe you could Great. on performed And Thanks basis, change? could much first you versus first and around curious. the year. hoping the QX backstage they how balance much. even about very versus penetration months Just the stores. talk perspective how of the GrowthXX, understand in grows some give the us maybe the digital Was then if help the half Maybe of nine

quarter? gross in fourth Thank should be Just of much. so how you understanding the have an on margins there delivery very pressure we much

Jeff Gennette

just take both your So, Brian, let questions. me

mode app. just So, that competitive I and growth, – back digital is a thing mobile think great brick-and-mortar, GrowthXX, Macy’s the robust the so to healthy first go on

investment the we and an did the to so, well was and we felt XXXX solve in It early GrowthXX then those have three winning learning us strategies. of really very we’re from see both brick-and-mortar And and happy buckets continue categories there. would strategy, there, we with what we're I do that in testing one how

we're it’s of the on all in promotion, a been approach, focusing with with efforts change, it’s your question at look on And our the most more we’re it’s marked very is on presentation, brick-and-mortar product the the that, GrowthXX and but focusing process, about on we results important balance trend it’s focusing brick-and-mortar. change it’s marked one and you strategies our on when has XXXX, trend put To XP since versus GrowthXX value, all getting. So, it’s satisfied against focusing even people. focusing that of

carry back to expect those We of into half the trends year. the

net thing responding promoter terms customer up up of our that’s other that about we’re and score the GrowthXX, full note what to how growth the is XX. in is important Paula almost quoted is to The points XX it’s seven making, in changes

So, really the liking that. break-out a more is of of doing respect growth. fuels doing our business direct. your we vendor With piece to customer with volume about with question, think don't growth penetrated And as Digital when Black think Friday you that are the to digital what is respect we're on fourth you Monday, we Cyber we're what quarter. about well that great doing, deal a as

our vendor in back that had five initiatives, you – and quarter by fourth of when direct, of and the the almost half think skews basically at doubling the to of inventory, going So, one XXXX, XXXX. as be we we’re where we’re about of amount into going our the

fulfilled digital to are that a lot of So, we to we’re want growth that’s sales inventory to but be that’s be own going banking that. of the that costs vendor. going shipping that’s to We sale, and consummate the a there part until recorded on the by that’s are digital, then

digital. I’d how to that’s respond So,

Brian Tunick

of question kind on seeing year what you two you're year or think seeing you versus now first know have in either a in year the just it lift my those one comp backstage, are I And ago, half what now? that stores in

Jeff Gennette

year came in has the this So, an for into backstage investment good a with been story thesis. We us.

We’re executing that. now

So, first in third coming as end that XX another quarter. we backstage got we’ve we’ve in the by the of or opened our said in comments so got XX the doors in of year. that We’ve half the are

prior. we added XX the added So, we’ll that have had XXXX, in XXX about in to some we that will have

going adding results satisfied there. our out, plans making that’s of openings making So, each lot through we’re now, the building of a this, with in we're our and right of that lot construction, of lot all stores, the

growth balance and were opened that lapping how business. they XXXX year's in XXXX, that doors I'm and the say we’re to in previous watch about I perform on how and of one would that think calls I things one was so of of second doors. carefully the those And backstage talked very are full-year we pleased are things that the getting those its in first positive

competitive and we on and giving our the that with So, and it advantage is is only resonating this full-price on strategy mall, history subject. further that’s a clearly our is having really our with confidence store customer that’s us a Backstage half-price believe progress

to quarter, the bringing of ads some in West Coast we second as put we’re to we're So, starting Coast. it some mentioned, be and doors. going to into backstage premium had the West our

So, Backstage Macy's. this evolving at of an is story

Brian Tunick

good guys. and Thanks, luck

Jeff Gennette

Thank you.

Operator

Chuck Gordon Haskett. We sir. will Grom, our now from next Please question take go-ahead

Chuck Grom

were half, you reads and that was year Hi, second than on the level than the little then half your front the for a change of half comps guide, back-to-school former review, update a which it trend second front the think your thanks, are different half about the in up basically good morning. any is to bit on but there? which guys, that you early greater is Paula, for guiding any I just reason line, I any on early know X%,

Paula Price

when half, first to take was very half really I’ll part. performance we second and it’s our so The our So, still quite in the looked strong first strong.

our of very are considering that fall into and strategic all performing gives but so we second are all initiatives, our first really basically so So, cycling on that confidence we strong. our half fourth In of guide. delivery half, with the early also us the continuing second the we and second the a momentum are very are was half, about strong but half, that of quarter, in we

Jeff Gennette

out back then well. school on Chuck the question, to started it And

receipts, boys You great was with well our were very to in so strong. we’re a entire our starting as really that’s store, that’s girls some the back-to-school know, the active of we and strongest that in for markets position not of uniforms, and one of business customer just getting kids across the that’s is the and our July month in Lorraine’s sportswear, June that’s earlier and entire traction, as southern question, and stores good in

our denim world. repositioned in millennial also We

denim really that’s price sportswear. triggering business. and So, in the doing And that some which is is missy juniors of back-to-school area well, quite points

how has started. happy it with So,

Chuck Grom

to out the GrowthXX stores that but Backstage, going do lot about, when stores think deeper going and obviously of about to the have like go into Backstage road? both the XX XXXX, you And pipeline close into you and and down doors to GrowthXX then, what you Okay, that’s I to stores, here XXX XXXX year, talk for our this you rollout said, looks great. more is XXX this in of think year, be think

Jeff Gennette

Well, portfolio role where first-off, is a we’re to I has we across positioned our our so right the like play. would that and say happy now store brick-and-mortar and with every nation,

have are opportunities not just And so, of each investing is what also what looking we GrowthXX that are in the hear we’re our we you in Backstage, at or but buildings.

value Checkout, for So, what about rollout. with and really – [ph] We doing the think Service, merchandising continue Mobile that. with At the doors. we're Your stores and would XXXX really in all But lower full tier the went Backstage Backstage really other some is really into of

of the beginning starting doors some and so Backstage tops the are doors, you coming of and most So, our at look quarter. Backstage in that not now with to in online experiment premium right of those. when many in now is We're that’s doors third our

So, carefully. we’ll that measuring be very

make wanted we doors. a with is had that respect What then lot. testing scaled more to into scalable of in lot that GrowthXX, could GrowthXX to sure be we’re we learning So, a investment all a the

off, more they’re what the want and from working, what as learning see they about. which is we're so, And voting excited what on, customer is not to that

learning that. we're of from So, all

continue be in to the more and XXXX. ready half doors of level through those year this with the We with back expect of in right learnings investment

Chuck Grom

Paula, real just guide. just, quick great. That’s on And

make quarter $XXX on that unchanged just is million that view $XXX million to sales to to You guided item? hat asset last sure wanted line

Paula Price

quarter Yes. in to and our I the of we’re We're you're in guidance million million $XXX the time for expecting at full-year $XXX on fourth annual Magnin, curious? some sticking guidance, the case

Chuck Grom

helpful. Thanks That's

Jeff Gennette

of size I That’s bulk of Magnin. make million the XXX clear, to is to just Magnin. And this XXX million that the Chuck that I is the

quarter. that to the expect in fourth through So, we go

Chuck Grom

for great. clarifying. Okay, Thanks

Operator

question Please of take We Drbul sir. from Securities. Bob go-ahead now Guggenheim will our next

Bob Drbul

morning. Good

questions for of couple a Just me.

talk when the and out, First, second extra so think to in move Family Friends you wonder talk the and that the if could you week, the you had, when you that just you look at adjusted the that traffic shift for quarter briefly, can I first. trends, excluding to

promotional million assumption The million income, that Thank Macy's, going beauty question the have credit you're the you talk you beauty if is, And the XXX was levels what’s your rate XXX talk that wondering ex-Bluemercury – to in forward? assumption, you’re seeing on on you. category penetration just third second is the card can category? the on and that the question seeing to I could margins in the category. I then at

Jeff Gennette

and questions, to take your going So, just me of Bob let transactions. But I’m talk three one and will credit. about take Paula

us. So, that number is I the sign think for a was Paula really quoting good

fact them our to to in once that transactions feel the services. half a right at good they last first are our on were is very up buildings, And right and deeper us. our the the with or then year I So, sign in levels merchandise, for site good the about ability convert

tracking are we that. with So,

So, we continue the that the into back to year. expect half of

fairly broad. the color, fragrances in as heard it’s about is our us Its of treatment, love let categories you’ve what front of I and fragrances, talk the how XXXX. with about on, have the about that half right when beauty credit. we its I’ll right the then content, with think our how you like values, opportunity I convert service in many there. many we levels, right know, and It’s strongest But that beauty door. and You its one talk you beauty, our Paula our always have the take and and building, with category, customers chances front about

all all We’re business. banging got on product. We exclusive got cylinders the to We’ve with fragrance launches. respect the

selling customer which is we're bigger loves the You jumbos, size, know, that. our

half So, that we the of expect into and to continue the our year. fragrance business back

in customer of and really our centric centric team, of We’re number and color that. really lines. how and brand a a to treatment strategy liked a strategy We're our our approaching from also winning leadership migrating the we're

is stores We a had into testing GrowthXX Woodbridge our went early store. Our laboratory for. that

other lines. are beauty then advisor but So, you line, will against they dedicated a cross-trained by have

The score with service liking up providing going and the as beauty, of a and we’re more also a is result score service is customer that customer net Our to south. that. opening way we’re promoter

more more So, into more as to measures. doors we’re content get of and all those result able a of newness

we're treatment. and of color very through focused working care competition some formidable got We’ve still we're So, on our customer. and taking

fragrances we’re doing So, continue everything in to continuing and we’re beauty. will work on

Paula Price

credit perform to on business XX.X% as XX to to a in of in And from XXX a business that continues healthy that continue guidance. it the million mentioned, penetration, and Bob in up XXX reflected are we’re up very basis perform our points We revenue, so we is to that’s year way. and million so expecting so, what last and guiding I way healthy had to

Bob Drbul

great. Thank you Okay very much.

Operator

next We Telsey will Group. Please of Dana our question now from ahead. take Telsey go Advisory

Dana Telsey

how vendor Paula. the you expense, didn't many a how what be? then many welcome SKUs, and that’s little on everyone, Can that well? it you development as about you. that, morning anything mentioned more detail on expense doing in we see And what’s how should good forward? going are how where more Hi, And talk well, offerings, delivery bit categories category progressing, performance, Thank do just direct lastly, you Jeff

Jeff Gennette

about take the after delivery So, let and two, we’ll last talk that. me

performance. we So, talked about category

you in the was and So, When all fine it’s strong, categories. business, some and strong, has Parts beyond good. very look the the Really in furniture quite home business, what that being to the Ticket across women's was shoes front jewelry we release fragrances have of standard-outs at strong. are our categories kid’s half Big well store put men's dress expectation. on I mentioned press strong, been are really all our Dana. it across active was very went performing already entire

So, that. happy with

You to talk want about vendor?

Paula Price

sure. Yes,

of increased it the ramp of the higher half our in shows loyalty year. in and expense, and up and we so, to benefits business our as expected program. in up credit also seeing up our delivery our mentioned, our up in shows digital second sales, are It we the loyalty business we retail So, and it income, shows

the a the expense loyalty comes impact third the which And second progression that gross our impact a in see which our launch year. we're – will half delivery appreciate, over Star with greatly quarter, we’re shipping, but the of we’ll cycling also, program, as well our and Rewards customers will of our So, progress, extra margin. the launching

up one the expecting factors, launching in versus we’re naturally Star is of the October year. there of we in again, the launch we're our And the are the digital third cycling and so – that which of program half are back to two business, the ramps see quarter, in Rewards impact

Jeff Gennette

And then to about your Dana direct. vendor question

but we are We’re in this, the early innings progress. great making of

are vendors we of We new our that are at target adding.

about to we one is units SKU store, Just had the remind versus low, of ratio everybody X multichannel that number where of competitors. an a X were that that to every our average compared virtually of to online

searches, expect in they that, in content, this our we we did have So, What we customers well significant we’re customers based of beginning is first of assortment categories so, on are that failed on the own said. track. Where amount that and could add? more stages should that sites? know adding at of but what great offered did brands we we were And what on new add you that we the where look all portfolio really, their and of we’re could are Macy's have

added. we’ve So,

early content. the on We’re that by amount seeing signs SKUs already of of basically customers double October, almost to of amount of the and end to we’re responding track

expect brand is So, we She you and us. endless it this so strategy customers customers just herself that a online the we is content and way know for curate the aisle more Macy's competitive, wide right for makes from for curates us store. having the assortment and or the look at

Dana Telsey

you. Thank

Operator

take question We Suisse. Please Michael our from now will Credit next of sir. go-ahead Binetti

is line Your open

Michael Binetti

my let Hi, Paula. and add good morning me welcome

Paula Price

Michael. you, Thank

Michael Binetti

year? help something seems you you gross little we that have the margin that straighten low this expanding out coming you XQ, fall, us when dynamics fourth third as continue just that think few see whether a Q&A just call, think margins but the after there of relative XQ I think, the confusion us just and through in helped lot or be the and help can contracting described to would get for I a no for to quarter, in gross we last a us just should tell drivers modelling, quarter year so you clarify Assuming reasons you just characterized this you is

Paula Price

the So, fourth we expect to quarter, down. overall, be

the quarter. of of In and the we're we margins the launch expect terms than of cycling the in the year, be Star up but so Rewards program loyalty dynamics full-year gross third Again, that’s gross done more it the fourth to we quarter for be the margin, in for last expect half sort year, slightly. to

Jeff Gennette

Michael, what I Paula said. So, would to – just add

in the continue year just We growing increased expect fourth margin the of back that new loyalty rate that versus merchandise to we’re in It offset last is then is delivery half of increase program the the penetrated digital and this both and quarter. year. business the getting to highly quarter third from that’s going a at double-digit

of to had on shipping in give getting but we’re on how up we're growing be gross program. full-year in the we much going this we the loyalty and on margin based traction some is where that again, back overall slightly So, will increase Spring,

all you to good this guidance factored strategy So, and good. we is all about It’s feel our in our here.

Michael Binetti

Right.

Okay.

I guess gross like margins backstage, loyalty do that for year of dynamics and are multiyear and multi-year, back comparison rounds catch XXXX based for digital a those merchandise you margin to and that those flat your on the the change for if, mean inventory you you at look I think out year a that margins after basis, business but on mentioned in cleaning So, you to to apples-to-apples some dynamics or down I blended and on a to think I more look gross industry if more XXXX, the growth gross how thinking consider up margin, you this you fairly, the margins as gross the think you are going more to say do up XXXX in expand initiatives, mix in continue a see? of business like

Jeff Gennette

it going program. with would I the delivery on to So, loyalty couple what’s of based a expenses in me rise, expect and that continue going getting in our the take let we're to parts. just on momentum digital,

be go a as expect would going but that’s margin well. rise, I So, to to merchandise I also up expect

customers, our to with getting that So, a about great and to product path control you cases, content. our when for you our towards XX% think our many ability in exclusive moving know mark we're

the an line. would exclusive look look brands I and we’re offset you we our the our get expenses that capsules can as growth expect and shipping to at of that margin So, some in you on that at getting more private when increased brands those

you going those to we’re but working So, both to on XXXX, too early where ends. tell exactly we're in land

Michael Binetti

a Okay. lot, guys. Thanks

Operator

Please next of now Merrill would take ahead. Callen go Brian America question from Lynch. We Bank of our

Brian Callen

thinking Thank terms your of good ratings? is Paula, how your how thinking reduction thinking to occur you half your back more in about Hi, guess acceleration do against proactive I morning. about credit that manage this separately, and or reduction, target comment reduction about the you are relative debt to quarter's range to you. about debt sort debt of relative now? there then And leverage of

Paula Price

Thank you.

back, is which allocation step getting and think I here. a just our capital you’re me at Let what strategy, about talk take

and unfold, consistent business priorities our our not allocation so with in first we the fuel business investing results capital to as has strategy capital intend and we $X.XX to strategy be for continuously make continue and capital our to deploying Our billion growth for capital expenditures. changed, our XXXX, invest decisions example profitable in deployment in

buybacks. excess to potential And sheet form prepared X.X ratio our the times. returning healthy financial We flow times And continues share X.X flexibility. want our as of doing maintaining dividends, a be as Second, to for third, in downturn. target leverage economic our a be which for free cash opportunities, our balance are to well both to shareholders and we

And of the XXXX. being so, point, still we’re use at cash this debt reduction in excess anticipating

Brian Callen

much. you Thank very Okay.

Paula Price

you. Thank

Jeff Gennette

anybody else? John,

Operator

Apologies sir.

Lejuez of our We now sir. Paul will question take next from Please Citi. go-ahead

Paul Lejuez

promotion be second, the in Hi sure comps promotion the then you I I understood versus response you to year of are thanks to to August? think month, first not in talk against trended on sure lined I And about something Thanks. the last you And during basis you that the year's of strongest I July, when maybe of how you and half want I make Family half? up can a the that sure, August July last in just guys lined-up of about the to including July how first just first your year maybe outside was question, understand terms if in want versus guys. want this you comp would the make get it said calendar that impact the week first comp you have answer. promotion did said, week I provide Lorraine's Can just performance, same talk helpful? when that Friends make but

Jeff Gennette

Friends Paul had So, Family is got increase and was the that increase event we in actual the half. full the we with look at you the when consistent first

of the the about same business. as penetration the balance was it in So, we had

July with first satisfied So, week of a the not August of difference. that, that versus with respect week Macy's to big is last at

is a on but on second it quarter, slight So, slight negative the the very third slight. quarter, effect had it effect

just, So, of the ready to your for place it’s and businesses, it’s having business for for the the inventory that’s been us school it back that. in ready mix was

would how question? then that. your say that’s So, I last And

Paula Price

do I with… think to it had

Paul Lejuez

First up. half comp lined

Paula Price

Yes, our promotional for the first first is half X.X% lined-up. Friends neutralizes Family a comp it half the and shift.

Paul Lejuez

of neutralizes Friends of you lose August also week but the It Family, and a a and February. gain week

was the So, to a benefit [indiscernible]?

Jeff Gennette

we change there it’s It’s a quarter, a quarter. slight slight second Paul, meaningful. not third the change to is mentioned

Paula Price

Yes.

Paul Lejuez

Good guys. Thanks you. luck. Got

Paula Price

you. Thank

Operator

Cowen from go question next our Please take of now and ahead. Oliver Chen will We Co.

Oliver Chen

much. Thank and you, so Paula. Thank Jeff you,

initiatives, your a the thoughts and merchandising And also, would function whole and competitors of are utilization newer in customer of your test function and steps will you decision-making of a know as rapidly Regarding great is the drive what and partner the curation speed, is lot using because terms really how react? there? innovative well love buyers factor, some interactions made as with data, are of buying coding lot a there I on thoughts data to you’ve speed read attributes, shifting and

Jeff Gennette

dramatically we in structure the in past operating definitely we’re has really with mentioned speed our So, more have the as merchandised Oliver, organizations. changed

significantly to the used just So, of is have, decision-making speed it you shorter than be.

our So, the able liquidity tell our much wanted to is we’ve respond if customer Macy's speed needs, you respond were would be products to in into to vendors so to talk operating trends receipts And able stores faster. with in more because all than were customer getting wanted you got they ever. to we more that to our

We’re definitely working on supply cycles. shorten to our those with chain goods private own

help define right us to is to our right consumer for assortment what trends into. using and the definitely We’re get panels

very getting panels. trend and We’ve fashion advises there our office a consumer are We of that information got space that are have developed which ours it’s colleagues style out crew, in forecasting social with on on that own working that. their

organization trend. dramatically their desire responding for So, how customer more and we’re a in we’re to needs we’re we’re agility operating and much leaner more with and centric

and and discounts, sell-through did well we with what what for, defining you and analytics us and markdown making need and expected what pricing and the what we're January, a built based half February, serves and just sales, analytics, business south sure ago that to over not relates you at only it excellence also in those as analytics paying in in it of seating customer us, forecasting. consolidating all looking out What North of the in really helping improve of to cadence as into point-of-sale a into over that need on plans for want pricing center and in of really the decisions, getting off buy we – is history terms our view. do means longer date one As terms demand year what that in margin but means it

use fashion at innings that our that So, early we’re both with what to retail going in but to is be formula And business. of a married have the science I to if is Macy's. this, the and really we of think and Bloomingdale's art science appetites art success continue

Oliver Chen

That’s really helpful.

that Thank of this what Z? to in to think a millennials attracting do them appeal traffic your how positive balancing story, is you. driving younger re-orientate long-term the you well, in speak would on call, the Lord of and you and ensuring you’re key follow-up a customer throughout as context Generation Just sustainable as initiatives you to the transactions and

Jeff Gennette

are you a online the it’s you long-range, you mind better think digital top that your be and between robust better be I growth, really in combination of for way customer.

to the kind be incredibly guide is and a of that, in app think the need important done mobile needs their as about go how app mobile is going being be wallet it and how future, used to Your so got you is to store them how and transactions style to or through customer three to and the all gives your crew, and all it those friction access has in buckets mobile between effortlessly, the same and then or time off-line at services play product online. stylists a categories app to removing when how of journey

would fleet, that's strong other give retailer’s you moat, app, a that’s I brick-and-mortar brick-and-mortar multichannel focused. digital, where are that so strong healthy healthy Macy's and really mobile and with you when a, know and marry we really competitive that and then So,

when younger brand. to relates interesting Macy's that As it’s you the consumer, at look the

need that’s opportunity working the others. on. do younger know we’re what businesses know, very that we is. and We have attracted certain and You know we're in to and We to consumer where what we

a men's example. great that’s If you look clothing at the

look it’s clothing in the entering of We purchase. through terms are when men's and headlines amount one amazing you of are business of store the clothing men's customers the younger at that our

So, – headline, focused a the on we of that’s have we but we customer are tomorrow. others, very have

not we're sure that to that, alienating already While we the doing want that’s our make in tent. customer

when initiatives to if will all look you what our terms program, think get at think vendor Backstage, younger those loyalty, bronze you are we're the you about our with about broaden to and customer And customers. doing payment so, that direct, profile

Oliver Chen

Really for regards. helpful. Thanks lot the Best details. a

Jeff Gennette

you. Thank

Paula Price

Thank you.

Operator

or the to additional question-and-answer closing concludes to any you I’d like At remarks. this conference time, for That today's back turn session.

Jeff Gennette

time Appreciate Thank everybody's you attention. everybody. and

Paula Price

Thank you, everyone.

Operator

today's call. gentlemen, conference and this participation. concludes Ladies for Thank your you

disconnect. now may You

Macy's (M) 15 Aug 182018 Q2 Earnings call transcript