M - Earnings call transcript Q2 2024

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Operator

Greetings, and welcome to the Macy's, Inc.

Second Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. I will now turn the call over to Pamela Quintiliano, Vice President of Investor Relations. Pamela, you may now begin.

Pamela Quintiliano

operator. you, Thank and everyone, joining us. Good thanks morning, for and are me President, Chairman our the our Macy's today on call Jeff COO Mitchell, and Adrian and elect; Gennette, CEO With Inc., and CFO. CEO; Tony Spring, Along at has Investors posted presentation release, been XXXX. noted, otherwise second the with our today on website are quarter versus our of press a XXXX section macysinc.com. Unless the comparisons discussed best Comparisons benchmark appropriate performance. are XXXX to to provided where on our guidance All provided references refer expectations, otherwise unless or our X to to June noted. prior outlook call, earnings information

and All our Commission. provisions and forward-looking discussion detailed forward-looking Litigation filings Exchange of safe cause from in statements are factors assumptions these risks is subject and of expectations contained to These that uncertainties to with Reform mentioned uncertainties of the harbor results today. statements XXXX. Securities to materially actual Securities A the subject the and could are Private differ Act the

certain In discussing measures. of we our operations, the be results non-GAAP financial providing will

can used on regarding You others section our of well Investors these measures website. as find non-GAAP the as financial information additional

is being be call. after A this replay conclusion on approximately X Today's call hours our available the of webcast website. will

I'm hand over that, it With to to Jeff. going

Jeffrey Gennette

year also under our role third COO. and there, the to give second remainder you that joining the thank environment and and of on everyone, will morning, and is detail growth Good call expanded and to full us. provide begin the I'm then informing vectors the merchandising Tony will update approach Adrian of with second results, how his outlooks. for strategy. on discuss followed From on an macro discussion the going quarter as X will today's our our our review a year. quarter opportunities He quarter by a additional

dig on we acknowledge devastating want results, to I the Maui. the into Before wildfires

by the through colleagues residents. our our campaigns Hawaii by all colleagues those destruction engaged wildfires. for North Fund, caused Maui via accounted our directly are impacted Relief We're but roundup on commitments the Star and have financial and and few to island, our been annual American Cross Guam supporting support stores loss have and the We a Red customer with the across

We offset benefited second to Adjusted shortage. of shift of gross of from margin a timing sales sales, results. and SG&A. quarter rate XX.X%. EPS a lower-than-anticipated achieved an $X.XX revenues card better-than-expected net of Turning recognition These rate and credit billion, SG&A primarily $X.XX diluted margin more the XX.X% of than factors and in gross

back, with down weeks. inventories flex and to data-driven depth and We XXXX. receipts clearance commitments to inventory our were fall of entering call, quarter On second XX% with of several by the step exited quarter. down to seasonal back the spring last and in inventory the our and activity markdowns, half the the XX% with promotions utilizing length to the Ultimately, reduce clean our a quarter we we first excess due ended of position. seasonal we committed lower-than-anticipated earnings a trends Taking tools at demand Macy's to disciplined year approach in to cadence

of were for seasonally quarter, sell-throughs teams and omnichannel and of the being improves easier as all cross-functional of nimble, markdowns into the cluttered less and strength, and to experience. to Content Thanks third ability-to-chase appropriate and with are areas Promotional our open-to-buy new embracing and navigate. online is floors fresh not than store shopping which clearance better deep. were ways flexible Entering expected working. the

and Aged prestige and inventories clothing. below were categories particularly men's beauty, XX% Macy's, an and were career lower. last sales licensed declined inventories At X.X% on levels weather XX% Top-performing comparable sportswear year's and fragrances owned plus sales about net include declined tailored warm X.X% roughly cosmetics, basis. women's

also continue housewares. soft realize and casual remain improvements challenged. including and We the home categories, Active, to sleepwear textiles in

categories. and term, to in in and on in trends working online In the more improve XX Nike doors near Men's, spring. Women's Kids to rollout Active October, are the and than the should solutions doors this We these XXX reintroduction benefit of from

attract This morning, pleased of Armour The Under announce beginning to that wholesale will of and product and we Select speaks sought are Macy's and be reach online in strength XXX stores partners. February. ability Under the Armour available in our to also return men's and to after Nike

we're on both working new to as brands as with ahead, partners well potential Looking further. how expand

concept, outperformed down within X.X% in points. an being which the winning sales Macy's in owned stores Bloomingdale's, option comparable men's women's while dresses and our Beauty, and they shoes categories, apparel stores full-line At retail. license roughly on Bloomingdale's Comparable contemporary our designer best-performing and operate and were challenged. on basis. by were plus multi-branded focus basis were handbags, remains upscale for net Backstage, declined store owned Macy's sales sales X.X% off-price for XXX

During Delaware. leading consumer, the introduced which we this shoe selling our be Bloomingdale's Bloomingdale's we will XXst month, outperformed basis it been highly outlet opening to line full by is will Later points. quarter, our locations relevant be a brand located in XXX out. active outlet, that has HOKA, Christiana, and about

brands. to X.X%. comparable skin to and color At continue our and sales sales Customers cosmetic Bluemercury, net well respond rose X.X% increased care

and quarter driven, health. exceeded promotional expectations, makes they markdown in were to results our second While consumer potential any decipher it largely shifts which difficult

identified an we or under. about the year, on plan customers roughly we customer, of remainder at our cautious the household pressures impacting we think have $XX,XXX of where average of the and remain Macy's, especially income XXXX, As XX% the

controlling Macy's on focused what intentional several income, we as shift our in and converting experiences. predict on last cannot and categories. with when are more They more ease disposable the to of we ongoing not the We quarters, aggressively pressures spend discretionary customer services and an have seen pulled easily becoming the macro control. allocation can Over their back on will are

and strong our we However, us disciplined well. to inventories fundamentals position of approach believe balance continued fortification sheet,

reacting reading Today, are preferences in we real shifting consumer time. and to

into working category of We have strength. areas receipts, and chased what's pulled back remixed brand on level and not

remainder we of time to and we and inventory and are the planned, strategic value. right ability the have right the thoughtful promotional confident at As in to calendar right the year, our pivot offerings look we and the to

We positive a composition, and compelling find will had continue execute weekly to depth to longer leverage efficiently and science streamlined our data term. both and to on basis decision-making that and near breadth opportunities a impact, refine tools inventory a further

everyday Jordan have At and and also selection including Ralph Macy's, we Levi's are Lauren, a better basics, a uniforms. compelling for of back-to-school, including brands, of relevant Kids, national mix offering

amplifying destination. gift-giving further are we strength our holiday, a as For

We have quality of elevated products. the our

more built significant of strong have quarter from private of We beauty brands. year. the are for to mid-XXs categories top value accounting strategy, during across over gifting fourth versus of rest our and piece XX% Macy's the market sales our And brand a

strong longer-term This a differentiated experiences. will anniversary Disney toys, is will holiday to of brought partnership strategic and anticipate the Disney engaging life a start We for categories Toys be XXXth store and a elevated retail products offering through have "R" we that and across with online. collaboration in Us

to we our been fragrance have our designed animation introduce At client relationships. in launch activations is around and stores expanded shopping will luxury an of Bluemercury, and best focused many for we proprietary holiday, strengthen And and partnering create our bath at brand, we on body offering newest and which inspiration and products. our are our patterns Bloomingdale's, holiday with to the curated season, have brands pop-ups events high-touch, interests and customers. this unique experiences, of These

our We year for reiterating and despite elevated will sales full shortly, relative will are prior excited the we but guidance we full customer. Adrian half detail card in asset to all in headwinds outlook, credit important it note is discuss guidance. the back diluted ways year for EPS to adjusted are our serve our revenue that

the congratulate I our our at recently is it world, moved by growth Macy's, places XXth. turning D.C. milestones. private At been them in to on in reviews Its City. is our team which teams cost from to X benefit energized demographic XX% offer. go. At have well trajectory, efficiencies York over and responding the launched one Washington, further introduced July. been the The allows we very of to we to and or Commentary to its soft we XX- step Marketplace Macy's, Before approximately New On categories woman brings and important with has several And Tony, in them infrastructure of Inc. discovering of of brand, major on the above. to Customers beauty newest target Bloomingdale's, existing positive, product receiving centers stars brands the this new want from headquarters Bluemercury, the XX-year-old

to and approach store. merchandising. Tony success relevancy to X underlying fundamentals, modern we ahead, discuss experience our Looking a improving vectors are going to components X elevated With vectors customer believe his and key as growth department growth is that, our that and

Antony Spring

Macy's and Max Thank morning, thoughtful and work begin a organization. you, tenured to arrival fresh the believed consumer dedication their experience commerce over newer has practices. the and colleagues excited I for at they and look and the I've to senior to innovative are life announced Max contributions. Customer most co-leading valance together We're and Jeff, their to recently our working years good Last partner, the by leading. that Max recognizing of I and of Digital forward across we our want coming everyone. XX us join always brings as Magni, Officer. most teams week, see McKinsey, Chief perspectives, of have Inc. next-gen that and his growth

operational vectors advancement Over enabler with everything been transformation keeping This customer the and These the at the health our last our the overarching are of growth X of center efficiencies a of we several have financial years, company. the Adrian intertwined improved do. vectors. of the and and Jeff the of key strategy has

Our reimagination. Macy's growth is brand private first vector

we launched which Results encouraging, by Jeff recently exceeding sales believe direct consumer potential to informed On one brands. our we As the are and has XXth biggest research. mentioned, become private with expectations, has been of On XXth,

both to merchandising, considered a authentically product development customers. strategy. Their X From of brands to intention third, worked marketing teams design stages current built imagination wants and private been with create been resonate hearts meaningful the sourcing They and our on execute team needs. provide with work that in has Our customers' and updated stewardship; capture have thoughtful with life to pillars: planned second, rollout the first, key the and equation. brand have has reflect attention; of branch our to and value and prospective and together

plan With expect Through existing to we XXXX, introduce drive portfolio, would ultimately to customer and brand of by On complementing benefit XXth. all replacing which proprietary ones, matrix gross refreshing product, our new be with we further margin. in national including X should the differentiated our and reinvigoration loyalty our sales brands portfolio or

broader As sales brand next successfully updated again year, brand private I.N.C. second quarter, last part segment. September, introducing continued our In this once of be outperformed momentum I.N.C.'s as its strategy, apparel the the we refreshed popular of Refresh. for In phase we'll Women's

Our format. vector is store second growth small

small-format of include in and will will area the opened stores the a format Chicagoland smaller opened is open and owned Indiana. we with the which performance will X format pleased our be other we'll Diego. are in location We September, Northeast. Last one Xth Macy's our Boston, open more; over we first Macy's plus outside XX growth. and Macy's and have been in in Bloomie's. a Vegas small And Las year locations, comparable had licensed Bloomie's be sales weekend, our which that In X just X San positive November, in a

with Bloomingdale's November. the portfolio, format The will to small to which also be adding new in plans a is location is market for open a located third in store brick-and-mortar Seattle, brand. its

and growth We is the to continue categories Macy's, seamlessly merchandise and which higher no the At year-end, X,XXX risk. third anniversary that order. the last offers gross value with experience At higher inventory marketplace, over integrate significant have digital we're on marketplace, now of average Our offer marketplace approaching quarter. our curated brands vector customer launch. X-year the from platform, XXX we per fiscal XXX% grew units and brands from see Macy's by and cross-shopping, order value first we up approximately

introduced Bloomingdale's pleased recently mentioned early the Jeff we earlier, are with results. and marketplace As

Bluemercury's customers. product is is far, performance to to skin strong and opportunity the smallest focused luxury a and Bloomingdale's for work concentration on more we our in believe handbags mix Bloomingdale's, areas consecutive Improvements is comparable both of base spend. including Thus trends Beauty. Our the Bluemercury, trailing our and to customer remodeled by growth. trailing know this doing and brands fine XX-month we stay to we and customers spans loves with care growth larger the Bloomingdale's, new consistently count the brand is driven testament have beauty and list grew jewelry. and and luxury basis, and experience. Bluemercury have there top which We Bloomingdale's customer continue goods doors luxury shopping the XX%, Macy's team a products. the ahead count exclusive the shopping realized experience fragrances, rose X to with on On quarter relationship the customer our basis customer. our elevate At and our have vector fourth luxury with locations penetration, of remodeled a experience, XX-month optimize evolve offer sales shoes, luxury, we a loyalty tenth of beauty, of more. At nameplate, primarily Active higher

offering Macy's freshness business our service. brands net in our newness, a on At core Beauty, and expanding luxury market with in-store we're

holiday, prepare fragrance our lean our remodels, for positioning the bringing and will additional omnichannel experiences, we beauty XX As across the into locations. will we introduce X to total shopping leading

to offers personalized our is communications. amplifies across by loyalty improving lifetime business value vector relevance of and It customer and interaction. increase growth fifth every Our strategies

year, tools consistently technology and to of across points, digital to tests. growth and amount personalized to several multichannel We incremental forward early launched in vectors conversations our you implementing on Our our the that and next to growth continuing increase marketing. I sales speak teams new touch update the look are more that recently even us beginning behaviorally-driven and am allow will I our progress. drive stages should customers multistep of X confident

few I our want Before Adrian, overarching turning provide thoughts to to a the call strategy. over merchandise on

We're at Over Bloomingdale's. the and the spending time private the last together right ideas discussing balance and the Macy's their and several duration. to of importance brands months, experiences combine working team, I've with market been of my

are we major targeting opportunities. Currently, X

right the customers in maximizing have where after second, products going demand. that opportunity share sales And First, categories, our categories customers. and and market excite signaled brands underpenetrated

In addition, potential current are partner for Nike and Armour a great establish additions top further market brands. The we're compelling of exploring how can and as upcoming ourselves Under wholesale we X examples.

our off-price brands and off-mall, business committed established on-mall Despite even desire customers' challenges, a luxury and on to transforming national in brands. digitally, unpredictable. are environment up We to we and and macro an shop the conditions that's remain to focused private to or coming satisfying from

the Within I execute, advantage framework, uncertain is environment. this even up multigenerational and our that success in in multichannel, platform us multicategory strategy which confidence have an to ability to address and demand. sets our team's for changing

With turn that, to me over Adrian. it let

Adrian Mitchell

work, technology ongoing my grateful I my thanking start hard with want am and I teams Tony, everyone. in closely. good you dedication and finance to morning real to supply and more Thanks, chain, morning, by for their this and partner estate stores, to colleagues and

to areas of X shared the In flexible more model. opportunity our build efficient fundamental and that faster, more call, operating I a last we identified

omnichannel second, store supply capabilities; while optimizing localized modernizing physical experience; and footprint end-to-end technology our assortment flow, shopping and inventory enhancing merchandise the infrastructure. improving chain planning third, and our First, further

on I Over this engage our continued while more future. to shopping with look simplify last forward few teams customers. effort the experiences sharing to on more consistent how our inspire the that our months, have I processes, in align and to providing

for X Now let's talk the performance levers. second our through quarter creation value

an ticket Comparable AUR the above licensed basis increases of X.X%, year, driven outlook. First, category decreased and mix. high sales sales. of X.X%. the plus sales Owned billion slightly omnichannel rose by X.X% declined Net $X.XX end versus owned on our prior

on continued markdowns AUR lower mix. improvement category of the increases, ticket year, remainder the and we expect For

was million Other Media $XX net revenue of Macy's at of $XXX Network X.X% million. sales. to were revenue flat year last

near-term Our in Media broader by caution light long-term Macy's confidence of tempered Network industry in trends. is

sales. increased the declined quarter, of X.X% stages million across an and all points the balances. revenues card $XXX rate card experienced of within During represented credit $XX basis million, credit net to portfolio delinquencies XXX aged of or year-over-year We

environment, While at first our led the results faster earnings since for to to speed as the we than increase was broader industry in us and planned. delinquencies portfolio's debt credit outlook. This negatively impacted quarter increase our bad rise credit which had normalizing quarter and card second of the part expected an occurred call the

reminder, a As credit of revenues the include card quarter rata the for bad the updated recognition annual pro assumption. debt

debt discuss a moments. assumptions portfolio within credit card We outlook will just updated in bad of our inclusive the few annual the

The second is margin. value lever creation gross

Our basis XXX Merchandise than outlook. gross year. lower points but our year, points was below was margin last rate margin above prior basis XX.X%, XX

margin we quarter, above lower our outlook. Merchandise recognition, also sell-throughs while spring mix implemented our year's the of better partially impacted leveraged clearance shifts prior savings freight a our to the surgically category and receipts. in by which, efforts. and from tools excess promotions, We and timing levels, forecasted unfavorable margins seasonal shortage inbound in and During processes were shift cost than charges offset maximize by data-driven markdowns last of

In for low did assumption, June change approach outlook our our certain not but in remainder a quarter. count receipt RFID the This penetration. categories The trends in of planning the better it relation materially shortage, to categories the physical year. annual to added count for inventory informed the helped understand did counted and shortage second with provide and actuals us we

shortage portion third accrual quarter a result, a and of we the As fourth quarters. into out second the recognition and the our shifting adjusted of

from volume. to XX carrier as costs year, direct decreased due and fuel lower rates lower renegotiations well delivery prior Lastly, basis improved as expense the vendor primarily points contract from

the quarter We're of a declining and low the turnover compelling SG&A levels End XX.X%, $XX XX-month XX% in productivity. key XXX than to million flat XXXX, last inventory demand. Expense was year, which discipline improve is of revenue were inventory product receipt reflecting expectations, fourth roughly was for lever, creation value value experience. to as or third year-over-year Trailing the our better points the Inventory year. point XX% a to last expected inventory a billion omnichannel our year. was of prior $X.XX at and represent decline fiscal to management basis is the having appropriate lever. total expenses down sales. to sales further SG&A X.X% percent tenet creation current based on turn committed year-over-year should from let's year. down Now than customer higher

versus in SG&A prior Better-than-expected by margin XXXX. the outlook. EPS. diluted offset impact gross quarter roughly EPS EPS $X.XX revenues midpoint $X.XX was our this Combined, and was of card $X Second negatively shortage, $X.XX sales, credit impacted relative adjusted by to $X.XX, respectively, and were to which a and

creation Lastly, fifth lever, value the capital allocation.

lower We was During of million merchandise versus million inventories last half, accounts had operating year-to-date, of $XXX payable. we paid million in from million. primarily $XXX flow of change real of year. merchandise inclusive $XX cash we Free an And capital first flow, earnings, dividends. lower expenditures. The proceeds generated and to cash $XXX offset was by partially due the million outflow estate $XXX

to deployment respond sheet changing the core and and vectors. and consumer capital us top trends, Regarding continuing invest flexibility liquidity competitive business to to balance priorities. healthy They times remain of uncertainty, in in growth our while a provide

the let's to have outlook. the To year full on third set, view continue consumer. Now level cautious discuss a we and quarter

forgiveness headwinds in on beginning job higher In addition levels are consumer. on discussed and student of all October, earnings prior pressures interest the expiration lower calls, the new rate loan creation to new the

on how will increased contemplated call, an after especially of had so them, still providing is While months unknown last many earnings factors outlook to we annual it pressures. our consumers these respond when

consumer is maintain their believe to that on on sell. our discretionary we the is remains cautious the control. much such, As there capacity prudent in spend to this categories we with Even it and view backdrop, our

line compelling and are activity. inventories reflects that year-over-year fresh, promotions demand. composition with in on appropriately we and an quarter, expectations with believe improved third reduced the values results at Entering and clean, clearance current seasonless Quarter-to-date are our sales fashion

how walk expectations. year framework the through about that our on thinking full half, let's I've provided updated the are we Now back

year sale count. and changes and credit of second by which favorable quarter in better-than-expected now expense full interest outlook and both Our revenues card share contemplates fully results reduced asset gains, are offset

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fees regarding We'll learn late changes as still are regulatory potential updated you more. pending. keep Additionally, we

the remaining to Returning line items.

a our of gross is XX.X% expectations prior to XX% than of XX.X%, margin rate which to XX.X%. better We slightly anticipating are

our parties areas from stores, technology, away reporting and collaborating are testing on including variety to and target headwind, optimizing entrances Our staffing high-risk impacts advanced Shortage strategies, to a of with change. be external tools, remains we protection focused legislative mitigation the use moving shortage, asset high-step product advocate assumption margin, for and to of in which for materially unchanged. continues gross a

to importance total to or end SG&A. XX.X%, the of a with the as to XX.X% on risk the a of turn additional protecting efforts reflecting is percent net expected SG&A given let's XX.X% XX.X% of to expense as experience. revenue customer sales, ongoing be discipline percent Now low

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balance have we do to so. Fortunately, the sheet

compared When our on our to of end inclusive diluted expect achieve to percent $XXX million. After expectation which high of We the diluted to looking of relative interest $X.XX our we are X.X%, to high discussed mix, are to is margin, what annual gross of first and roughly a gross shares. There our positively reflects primary adjusted X% an EPS adjusted and current and and as prior EPS $X.XX to volume low annual we expense outlook. incremental EBITDA expectation, to to SG&A end now To net end benefits. total sales. maintaining revenue parts XXX approximately be lots shares at of million of the $X.XX an of Interest moving or a low outlook. are the is taxes, updated of to roughly of percent outlook contributing and summarize, $X.XX, the as annual X.X% margin, to quarter prior our expected our X.X% shares call,

and prior expense These execution benefit to incremental an solid $X.XX and $X.XX an represents lower contributing contributing outlook. to together, reflect factors are share a And is in incremental our our relative count $X.XX to $X.XX $X.XX. core SG&A interest business

$X.XX lower are On a this of high drag gains and the the on credit end each prior side, essentially flip $X.XX out. outlook, to sale our $X.XX, while Combined, to impact. other $X.XX negative $X.XX reduced low revenues end canceling represents a to card $X.XX asset are also

diluted EPS does assume Our repurchases. potential share not guidance adjusted

quarter, expect rate billion billion, points to of third of at the XXXX. margin gross For $X.XX quarter than the better be third least $X.XX XXX we to basis sales net

categories, had apparel clear elevated year, home. warm moving last Macy's goods to markdowns promotions and in weather reminder, receipts and soft casual pandemic-related a As and slower seasonal excess including

$X.XX the introduce to XXth inclusive digits be Adjusted down basis percentage credit private the to of End brands. as shortage. year timing and On Nike shift we begin of down mid-single EPS updated diluted our to quarter and and in revenues last up $X.XX, further outlook to to low I.N.C. recognition card on inventories support a of

Looking next remain growth offset year growth single-digit our vectors beginning and to our consumer. pressures committed underlying an ahead, X believe the contributions macro provide achieving that to of low we improved sales ongoing and early impacting will fundamentals

factors we are combat. that more do to external additional have However, difficult

'XX trends revenues, asset regulatory recent in achieve If passed, EBITDA in double-digit card more becomes to are the fee credit continue, and changes challenging. shortage late and sale margin low gains ability

headwinds, prioritize and more of We're actively working Now to offset our underlying growth, be clear, there rest the share year we'll have been no changes to to progresses. as the assumptions regarding the and opportunities business.

to back for I'll now call the some turn Jeff over remarks. closing

Jeffrey Gennette

will Adrian confident I reflects find long-term Thank ways sustainable Macy's, and collaborate innovative to Inc. you been your exciting Tony. has two to lead profitable growth. you And to that and unique It lenses that backgrounds. you, am watch opportunity of

Now now for we will operator, Q&A. up open it

Operator

is first coming from Oliver of [Operator question Chen Instructions] TD Today's Cowen.

Oliver Chen

the and margins could also traffic. below was it encouragingly Street, card offset encouragingly guidance to XQ credit been were What the revenue primarily We better. as debt And have bad driver assume it's assume at delinquency that? XQ were AURs What the expense. I behind look up. we was that? being

opportunity, about market the term, you think you addressable dimensionalizing the format are as follow-up, there? small a longer And how

Adrian Mitchell

All right.

So, Oliver, good morning. It's great to be with you.

expectation. with the gross our margin we look, ahead of rate shortage, we that despite achieved second timing shift in quarter So recognized the the

we So pleased were actually quite that. with

we quarter than second product the talked worked as promotional lot was anticipated. of while promotional about, was year, we it to less that the clear had Now a we than last seasonal more

to personalized strategic we had We and leaned spring that maximize really prior. data-driven been in and lot we've the of as the us the exited couple place leaned promotions, of we've using into science last pricing into as actually season. years, a for sell-throughs processes about margins in our leveraging our allowed look, our talked But

we're did schedule. Now a seasons, through ahead able in of as weeks to the that seasonal actually several we clear spoken product about we've of previous lot

So these we're behaviors back of take continuing to the into half the year.

Jeffrey Gennette

in I'd inventory other great on thing Oliver, would just that, our The position. add a is be

we the interest. of that our exiting category. have down respond to ratios liquidity XX%, been retain by lot quarter, will third stock-to-sales customer are able good a to So But

And as new fourth have confidence quarter at well expectation. at all we the as We're looking go third performing. into read back-to-school The quarter our fall really started as we has fashion the that's on strategies. how and

Adrian Mitchell

just your last question, I format growing format very of Oliver, with small If stores, our impact regards small to we're about the excited could answer stores.

we Chicagoland, small continuing up in early are up scale you of be remain in As this where stores Bloomingdale's. up of format several locations opportunity, opening opening stores. know, Vegas, but we're format we'll a that Diego to market, number Macy's our opening did small Boston, fall. announce this a we'll be stages And San we Seattle the the Las

customer terms the we of these see continue the up open in Chicagoland. did in store and experience for about we stores. a But quality of to experience as we week, performance Last think positive customers, financial the signals within our

growth So locations accelerate at country that across to enable us actively evaluating time. appropriate we're potential will the the

So more to come on topic. this

Operator

is coming question JPMorgan. Boss of next The from Matthew

Matthew Boss

back embedding next best to seeing that any top to that in a income cohort could you year? today, line by elaborate the the So that then change growth just year? you key revenue you're for believe macro X And Macy's in Any strategic for notable on months ago? positions half the Tony, return relative differences you're of initiatives maybe Adrian,

best you you've to margin low next given mentioned, relative think that external the to out? the double-digit changes target potential how range year about just of then EBITDA outcomes a for And laid that

Antony Spring

Thanks Matt. the for question,

Let me the for opportunities begin with growth.

And Macy's the the bullish remember, months. And portfolio on power with company Just brands. reminder, Adrian the as part senior other few closely leaders few last of leadership executive a obviously portfolio. the is in Bloomingdale's Macy's, working team been I've and for Macy's last and the opportunities I brand, years Jeff and with for and brand a Inc. remain the Bluemercury entire

Armour that are to They off-price our opportunity remains us our these private designed designed to in multi-category. sure believe are of example and growth market the all which to portfolio. of of reintroduction luxury, to Under merchandise, that I most amplify are bringing making important a announcement and is that. X And vectors around the we help Nike of business. brands going good The includes brand multi-brand, our

the stores personalized at in It's in specific that with It's modernization right marketing. portfolio more marketing, offers our of that us sure our the that on a number are basis the new today also strengthening right allow malls our for customer, right level has of as, the well making that but that or may small-format locations to as be include existing the densify, as we're Adrian right that enter in not locations productive, described, replace stores as quality markets. that

as Macy's we piece Bloomingdale's The of Beauty business. luxury also a business category grown is a but us And beauty single opportunity of importance across Bluemercury, to about. we feel strongly the the that nameplate. that's mentioned, the It every and very expand puzzle is underscores the gives

we of strongly vectors. all So growth our feel about

requires think making assortment. final brand they're of say making the seamless question, we redundancy opportunity and and for digitally, a is But things find variety, would our the private is brand easier exclusivity Macy's people the the customer the brands deeper those physically as dig more experience, the improving create improve as that are the fully piece level assortments I the growth focused in looking on and to to doing team we experience. And for us from eliminate highly and sure that answering necessary that that omnichannel comes well into your sure I

Adrian Mitchell

Matt, just points a that raised. you through going few

tiers. discerning quite being we discretionary income versus they how is all experiences across about think about goods. first have They're a choiceful customer The

And so positive experience on we continue focusing that to for we be customers. thoughtful our about things deliver a control to can the

the cautious The reality remain we environment, we pressure spoke We macro so we to in will as remarks. earlier the in environment, within cautious. continues about continue there believe opening that to macro our is, remain be to continue do

year, about year, the growth To emphasize is growth. that priority, is And and low is that. would as in profitable beginning remain dimension first next we think growth is your around that which Tony about profitable single-digit our third EBITDA what we margins, we spoke thing confident next top to,

the our business, our see that execution expense is balance management, that disciplines controlling core our remain we're we from to inventory growth that things around sheet. of management operating continue kinds of us and fundamentals The quality on The vectors seen within you've and our X track. on

Now term. remains it aspiration as it longer relates double-digit EBITDA, to low our

offset, asset we the term. the are about again the we we spoke on earlier difficult card and and look that several the of in worsening are call, as Now gains see term, the list. type near in credit all And our to things revenues, in factors of near top shortage as the horizon at

ruling about card which comes have think all we've in debt know, our credit limiting levels, of there's across to lead that you increased card. has which impact as the impacts still something delinquency look, aged to And that fruition. experienced So the as is late bad higher we legislative quantify to an potential open on we'll ruling fees, question revenues, balances about credit if

has industry-wide as been for Shortage, multiple levels. for has record Shortage will a years. It row you at second at us year for be know, been levels elevated an the opportunity. in

higher will continue the we these but to do we industry Now, higher assets. estate, right put be in in will those to rates then challenged our that, place We monetize with hurdle is on mitigation And real but regards confidence with now take interest to strategies estate, mitigation likely effectuate. ability strategies really to time real rates. higher our rates, address patient obviously, to and have cap

progress growth factors, year the the on initiatives confluence low we all initiatives of in EBITDA be look near when and But in double-digit may challenging. management achieve you ability different the as future. share near our Tony our the these focus we through and we'll expense So to the more referenced, term at that more

Operator

is Roach with The from Sachs. coming next Goldman Brooke question

Brooke Roach

understand should for improvement backdrop dynamic in was you How incremental And the hoping year? that you've rate levers are SG&A are identified? beyond promotional thinking us into and additional what you margins merchandise I what about consumer the you could the expense worsen have opportunities already Adrian, the potential margin help in backdrops? the back of half

Adrian Mitchell

much Absolutely. Thanks for raising Brooke. question, very the

disciplines about customer around really As seen you've the are us experience and margin, And management. the inventory from that pretty that's gross on think key. strong healthy we execution

for of allows to the a as competition. have our we've about from that shop well customers freshness from talked of perspective Now to sell-through management volume the lot full the markdowns, the us relevant us of as to support to price composition inventory of the the us inventory limit inventory our which content allows inventory versus

The side bit we We'll but something year pretty thoughtful seen we've continue gross done very on for is of would the year think you've time. I margin the the gross about to margin be this us as out one those, executing on different thing over consistently about shortage. a call with execute balance little

midyear So inventory this gave had shortage for visibility trends year, actually us we and count, greater confidence -- a year. midyear shortage into which the

QX. recognize we So did some shortage in

We is in will years, recognize from different to QX QX, quarter. done is which all prior recognize which shortage and the it in in some what fourth we've

thoughtful rate how about of balance very So going the thinking through year. the we about are margin the we're

terms inventory. move opportunities Jeff but the may to spoke fall of season. about growth the the to the to do all we Tony about and are in that of that sure We're respond composition we we through need any capacity and making have in initiatives business promotions excited absorb to We're also the to to, cautious excited that potential

$XXX SG&A through, As portion the feel We've We're earlier it gross We cost focused the see of on and the of it spoke come the that in you'll expense, materialize that's a biggest in to discipline, back of be we year. number to good about But expected our continue it about working for and focus to been being to those time. is something on relates in to the the spoke fourth some in expense SG&A, continue larger on quite call. those the very savings expense about course quarter. million seeing the both X June months. and margin we us a in that continue we with year, benefits, on for

Operator

next Haskett. Gordon question The of coming is Chuck Grom from

Chuck. on Sommer for Greg is This

Greg Sommer

credit consumer store the into and what dig vendor I the seeing of to the the Bloomie's wanted even and into credit little by would just you're this data? has the delinquencies, seeing outperformance health it what and high color of is wanted by you're card end. in deteriorated of accurate? consumer or Backstage also that I to higher consumer more curious, the you was just just at suggest the outlet health looking the then I when also more, on card of a get health the performance of then at dig terms

Adrian Mitchell

a credit data, So more broadly. a don't start the then little talk I we'll with bit why the card and consumer about bit

on that And credit one revenue to managing to the we're some think our thing card would with is seeing can. revenues indication we of the regards actually the of the card that an is So best I the the we're say pressures consumer. credit data, extent card I credit

So and as July. across those balances QX, environment. actually we a accelerated and of that age But the is you know, see expectation speed occurred normalizing delinquencies June higher did age we have in balances the actually all primarily that credit planned on of what based delinquencies out after or

So we've there. made adjustments of a number

cannot is we're a the there about can working that to Now that are of that that what's that lot we The interesting and mitigate is things things we things see. control control. controlling actively we headwinds this that we're

and We're So active their with in have can that also the our customers for capacity. Macy's we At partner, exposure. places We're customers, spend card. retaining focusing we're target for where their credit to new example, spend reduce prop we're We're Citibank, working on the card segments surgically on acquiring higher to on customers. risk maintaining

consumer, what But much describing around there I are that's gets the think things environment. and macro you're very into the we control, that which health of the cannot

personal consumer macro indicator the impact the -- we approach. is health income for one as credit debt pay and proxy find think debt income. quite is a environment to lion's cautious ratio, supporting our a we and disposable of on using their real So of of metric service interesting really is the is the the leverage ability the where consumer's The the we share which having

mortgage. about student month this come to or going know balances, is So card the loans, loans next credit in about which into auto is is two, this we focus

believe with is year we that these to deal year. the continue under this as next get of coming and pressure that just to the realities because back customer new they we half have into through move So are

Jeffrey Gennette

add question about what off-price. Chuck, is I'd your

on at what's XXX-point going know Macy's, at Bloomingdale's almost business just was So that and outperformed versus basis you about been Macy's off-price points quoting with the outlet always when difference. an the between our that heard brand Bloomingdale's we've by Bloomingdale's off-price balance XXX

to been -- our most just our being, discovery a base off-price mall has is about when you in think potent option price. have really an cases, of That part with

in And so the frequently. that's quarter. their what with We certainly price side. cannibalization off-price there spend with we stickier that and building going building that the more have no It's seen is is on They're between up the just relationships full customers. over time shopping second us. saw They're

really of different or is brand of XX% about about and pressure, of the question under are your $XX,XXX more that how to Macy's affected, the levels Macy's customers then income talk making Certainly, less. stat we'll brand. And is kind the the Macy's been has it

been they've under So pressure.

our ensuring really looking are the we're receipt stock chase sales to the to to what demand. think some in what I ratio we've loan headwinds particularly right with that controlling that coming, do can all we've student that reserve control there And loan, and of we expiration got categories, is of forgiveness. and into got

right feel strategy, feel now we our this we our good So fourth and are about good where inventories with about consumer. quarter

Operator

Jefferies. question is of Anderson Blake next coming from The

Blake Anderson

higher wondering about just know pressures guide on and little bit kind seeing I the you're the more if a then trends level. the maybe monthly conservative. and you're comp of I a talked the talk consumer, the color Talk on about guide confidence give comp some little was year? could your -- and being rest or the for you you've in but back-to-school of reiterating

decision commentary comp reiterate the the bit to give more your little for a guide Just year? previous on

the talk on the about of expectations your And second if for then holiday? can inventory then question terms promotional wondering promotions? in you're you And was, planning how holiday for environment, the

Jeffrey Gennette

so talk second just let's quarter. first the Okay. Blake, about off,

on disclosing quarter liability based sort about But So we quarter inventory we spring the we're performance. overhang. of not And as coming call, be monthly seasonal to expect did the any the on quarter. had promotional second first successfully third we talked we liquidated that our into the

to now that are want in ourselves get planning looking what at don't that we ahead right in driven we of So and third trend clearance experiencing than more since quarter. is the

and well our pricing a Third is the X most fashion. quarter fall And really just back-to-school healthy those our place be started traction at our stock with green on of new in important into stock-to-sales sheet kind as in strong factors mix with really growth to as as really great we're performance our is having shoots as fall it in a expectation, having fundamentals science ratio, the with. inventory having kind all between and being walking that, balance stake season of reiterate, of the that on getting items, the then discipline

talk So confidence about as have strategies. we fourth our we in the quarter,

is gross expectation newness built look fourth value, great that are at gifting have the off we gifting, it We quality, trending margin is the of and value some business businesses, penetration higher of businesses the than the amount fourth great So a other in that. you of the our beauty of like When the quarter. so high quarters. that quarter draft and should X for into

So We're going we're to sharpen be our be competitive. going to on values.

couple Black past earlier lull all the shopping customer the seen is all that. last ready through way shopping over and they're for taking we're Monday, Cyber the days, of Friday, As the years, we've XX

our that in the shop customer promotional built calendar brands. We've expect all the through of them we thought so of to we where where each

the the it's I "R" addition of think also businesses, the trending and specifically, it's of quarter, Toys the and in Us when penetration fourth you collaboration. the Nike, add to gifting look the Disney strategies at

that able team than to liquidity the real time that's in system respond agile the always and ever. faster to this importantly, Very just inventory to be in is responding

year when of guide we're where the what So -- built are half what what it. our we status is back the at that's into -- into going of the is about and think we

Operator

coming Telsey The next of is from question Dana Group. Advisory Telsey

Dana Telsey

As in at looked you think could cards, about you have credit what's different what similar versus and debt expense trajectory? be XXXX, the the and it bad

you mentioned third was and this exit? second And just quarter you current should back-to-school. tourism note? we how you of the that Jeff, I Anything know, what How cadence think quarter? then quarter, on about the as about did did --

nice we other to Tony, be Nike Under see brands. brand you looking assortments Armour. that It's categories to? and to enhance then And on there the that should just Are want other

Adrian Mitchell

and question speak the I'll and start have around to quarter Tony I'll with regards to credit card, your cadence. Jeff then

debt bad far So conversations. look, in is our levels back as card looked at our we've revenues recent XXXX credit and

our So that Citibank. good We a there and have been the recognize we of understanding evolutions terms have takes. agreement of puts with in

from we and But of so to the earlier. beyond our service consider much be is control so the really this continuing a what is bit around perspective, of much navigate controllables, around ratio. as and also consumer, the debt it's little continuing mentioned as shared, to Again, the controllables I to I health

that referenced little rate a a loans, their real you Macy's consumer it a the number about higher As of headwinds earlier responsibilities income about of think household bit in if the referenced as loans, income all average average interest environment is student creates think particularly in challenges. the customers, servicing I auto you brand, U.S., think cards. the liabilities. our their about experiencing those household mortgage, they in I and credit

the debt at card, personalized normalized best increased the but we ways the just to they to expected. continue to coming giving we really well into proprietary acquiring as diligently our offers usage aspects, we're on year, can. leaning new as customers find and customers, very loyalty look offsets to credit Now working But levels we faster bit normalize, than bad into to did as little more by project mitigate a

Jeffrey Gennette

brands I'm month categories. and it Dana, to the going on tourism, Tony on -- by to new the cadence I'll over hand new take and and I'll

conversation to earlier, as disclosing and that promotional not was down heavily Blake, monthly we're driven. from and marked question I it our -- mentioned my in the the performance On

on So second that is quarter. the

it Bloomingdale's. is the depth As not to of and international typically seen relates tourism, have return that the we tourists this the one we at Macy's that of still have

tourism X%. remind of overall in to south is our prepandemic was our That's So X% to just now It's international what generally of sales. it business. X%

yet the coming versus look it comparable So the We're quarter we from not is where the tourism at it you in that level. that when going are but to that's over Tony. business second first when tailwind similar. was the predicting be, future. turn I'll was to It know versus XXXX pretty pretty quarter,

Antony Spring

Dana. Thanks,

introduction just as go into the forward. important is think And I the what's Nike built think the opportunity I expectations category. have a brand, in example It's obviously #X we we in good our Nike. active the an of possible of brand

to benefit Nike, they're just other Nike people buy The going you for buy have to is come who don't other things. Macy's

as they the last the week team through with shared I me what you tell spring I'll took assortments. So merchandise

excited important ingredient curiosity, variety forward. interest hear I is in assortments. level I And desire newness that First, of bring interest an our discovery of was to more think and the the our level and and success that level the newness of going to in that, to

I think are the at looking that that's other categories adjacent. thing important these is

the we and allows So Macy's to before. And a marketplace. more we move focused we our whether or quickly, things have had to at haven't of and more test to marketplace, as or that is them But brands then we we Bloomingdale's keep just can assortments. newness stores those very and interest add our us quickly, part team more think ideas which introduce whether the I on bringing excitement

Operator

coming of Guggenheim. Bob question The next Drbul is from

Robert Drbul

I this versus Tony, digital questions at of marketplace, when platform, you with that on adding Or want the you about be? on will of luck great more then the talk to is, sort sort Best the Macy's, year? undertaking. with ramp the holiday the And of how to think are about thinking next into for you. And year? and be X into of in-store, that sort back it especially you guess is the half you. first the for of brands one of brands the where you digital is the on the trend

Antony Spring

Bob. Thanks,

marketplace. are of on on read brand we I assortment Bloomingdale's the excited the as about and growth Macy's we think the mentioned, marketplace, early

very XX-plus who business, well think, have business. focused We joins after will year digital Magni we Max I to space in McKinsey, distinguished us the be our performance overall mentioned, the career who marketplace as as the on at accelerating digital our in he a helpful, and

Bluemercury are also is will And omnichannel we to and remind Macy's just I everyone the businesses. cycles have movements focus they to while we want matter the channels, always that based sure these where our and accelerations customer Bloomingdale's shop. that and making between no satisfy on choose

at a where format part and going are off that's renovating because floor customers part beauty people Bloomingdale's, our expansion that's mall of doors So It's our mall. most go important a of main shop. on small to because in Macy's

well bloomingdales.com we want new of It's of as a that sure a bluemercury.com. a online of on we as place investment Macy's make and experience to are both experiences into transaction our part because place

satisfying we do ultimately customer. channels, the on manage we So focused between are really the but

Robert Drbul

I on And of remainder the for other down question it the have planning was it. are I is year? think quarter. the just Got guess, I how delivery But that this you expense,

Adrian Mitchell

that system, placement processing the also which savings combination thought our about think of how we've expense delivery cost some of initiatives has about, Well, within a the our delivery. of and of part impacts we our the been of the goods

look, for us. to continues So be it opportunity an

truly opportunities profile. to how carrier renegotiated expenses. about at versus to our margin media also our profile, with continuing terms some We're owned regards our versus to continue improves the think look not improves expense we which optimize of only benefit marketplace, from but We to

just there's it relates expense. that number and to as efforts we relates of a ongoing so And have delivery to as inventory it

Operator

next from Citigroup. coming Paul of question Lejuez is The

Paul Lejuez

didn't of your percent what mitigation of exposure percent What made on mitigating don't into looks card Can the half sales would efforts you And it any top not customers? at might long I those that are And last versus all. how incorporate guidance, up credit? reduce on customers. think your to And potentially that you year? you mentioned an those done of remind efforts credit You curious your line effect? higher-risk guidance? those sales is How have have us second also do to take portfolio an impact I'm immediate

Adrian Mitchell

Absolutely, Paul. be you. Great with to

to your But recent net you of in actually back typically around X.X% X% history, question, sales. if it's history, been at look further in that. we've been first lower So on than

raised question it and that at net So as of as the as performance. XXXX, the at back percent looking actually that about credit takes we've was sales, looked a revenues and earlier our impact puts understanding card that far

health portfolio. our As it the relates to credit a we have portfolio, of card healthy

card consumer, at about of who scores number factors we look before, the to mentioned versus spend, FICO to understand make their a of capacity not. thoughtful I've the the beyond their health As of decisions credit, line approve we on

and our assets, that. have we'll continue So we healthy return portfolio. on look do We do to at a

is in revenues. the consumer. the impact that's card of shift impact of pressure what the reality really lion's the think we've credit again, on seen credit the our the I that card around does share And

But all will we to and nameplates. base to seen cycles personalized across these leveraging revenues to we're strategies capabilities, to the We've cycles continue credit we've to been customer the before. appropriate find expand card these that our through work look, given before, mitigation within levels, continuing context our increase

manage our So have it's go that of dimension actively we as forward. we just business another to

Paul Lejuez

of on credit, credit Adrian, what percent card? proprietary are the done your sales

Adrian Mitchell

about So within our loyalty XX%. program, they're

are nontender tier. our done of tier our bronze a think across but sales I XX% loyalty is about program,

silver today [ platinum, is our rate look gold, XX% about you our and when ]. So penetration at

Paul Lejuez

risk higher you the of percent that what And it. Got customers mentioned?

Adrian Mitchell

your deep a Paul, that's We're healthy not the into if of nature subprime, Look, we portfolio. question. have

approving customers. high-risk want to have not customers longer our are using We for healthy time. a period We card of

do aggressively so subprime. we And not into lean

Operator

Alex The Straton question Morgan from coming of is next Stanley.

Alexandra Straton

Just me. X for

reiterated higher on that SG&A first like you've identified. I guidance there million I is more. the to It in you little just the The seems than dig know SG&A. a but savings contemplates prior, wanted in bit $XXX

ago? hash seemingly just versus X there, you out further months worsened what's can changed So

strength And as into certain result? categories? see strength beauty, or can categories then you nimble mixing a in further secondly, like select weakness all you you in categories as are be those how Or

Adrian Mitchell

All right.

So thanks so much for the question, Alexandra.

hand Let to Tony me and Jeff. it start with I'll SG&A, over then and

The SG&A across earlier and like our efficiencies related is and business. outlook annual things lot driving identified portion and $XXX was spoke the a savings the our to is of the million on that the look, in raised inbound So processes XX% XX% to delivery includes expense that We freight cost to a in we spoke that simplifying really of conversation. call. the around of remaining June X that fact

We And especially think lots on as in demonstrated responding as can. so to, with and very opportunities. there's SG&A I've best And quarter, expense to as expectations of very that focused much discipline disciplines we we're be that this was environment we second we're volatility to on management. these and management referenced. our initiatives in focused Now these we the than due expense continue better

experience. as about half really to level well expense the sure management. we'll of what's on focused appropriate customer But continue making back we is in we the the important of have year, investment As the think be

is is the quarter us, win ahead quarter. to That's biggest of destination. tend a we fourth gifting Our where as which

opportunity advantage have to want don't has sure compromise customer year. that the we take experience we shopping the the solid to make and of so options, a And we we that biggest can

Jeffrey Gennette

of that talk me expected what always do receipts have is let the your we cutting part about basis question. we Alex, signals We years, And on second on into had a that X.X we the that's based we've past -- then, over are we didn't as that weekly materialize. And that new signals can that liquidity positive. built on the that and always in, just rigorous as back a discipline chase have

opportunity issue available inventory to. So the the the an react to to been is, or having in not where always be has system of not customer this going brands

markdown our us changed cost, to more -- we've in really is flexibility moment. buying obviously, past, we've So this have the discussed net giving the the respond key to in to buying into with as customer full vendors, allowances, our relationship not

to So can beauty, we about chase beauty. your we have that question into confidence

aggressive built season strength expects and obviously be. our brands trends very where teams customer the the for have those strategies on our based fall our We to merchandising of and and us

and plan So to some are we chase and some into. react to going

Antony Spring

Bluemercury. let Alex, we and Bloomingdale's Macy's, add that strength me and And across have beauty

that's us on-mall trending in off-mall. digitally fragrance X is and And all important So physically nameplates. category an and for well and

the So we're business fall. bullish in the for

Operator

of coming question is next from of The America. Hutchinson Bank Lorraine

Lorraine Maikis

wanted I program. cost savings to on your for focus a minute

You that guidance run you're about to included much the rate are versus that these things of but million will early. million fiscal seems much in XXXX? $XXX be have it savings how incremental of How spoken XXXX outperforming in 'XX, a in $XXX

Adrian Mitchell

you for question. good question, Thank your Lorraine. a It's

we gross margin as of $XXX both call is about this the What $XXX spoke to So million. of million there a $XXX year last on benefit to is referenced, the and SG&A annualized was we combination an expense. million that

continuing we're year. benefit opportunities from that is reality this the to Now those initiatives those and

is thing we're are I excited So here. pretty about what real. would the seeing The key we're initiatives say that

And continuing lead organization, these to we're into an as expense opportunities.

think We get about get But for and working profile puts not you clarity We're year. through kind year. we how how materialize on and those definitely this specifics posted we as greater next of and our still margin have we takes we'll given give you on much into into next keep will profile growth as XXXX.

Lorraine Maikis

stream I up Can But credit. updated this then on It going to looks just half it the you recognition follow to guiding revenue decline. similar for second the dynamics like you're like pro And forward? quarter the annual about a wanted talk included sounds of debt down second outlook. numbers rata

Adrian Mitchell

Yes, absolutely.

on bad indicator rates. the are leading the write-offs delinquency So bet

and at the increments So all XX at write-off days, way to days, the XX-day is actually days, XXX when XX look we happens. days it XX up which

actually we're projecting So been about that we all given level be age increasing past delinquencies across that balances, we to purchases, band levels debt the bad perspective, see. and trends we of see the the as we from believe think what our has

that confidence So we us bad will other gives around leading a card what given be what and see revenues levels. the we on our with perspective our based consumer debt level those credit indicators and believe a and in greater of factors around

Operator

Jay Sole will UBS. for Our today last coming be question of from

Jay Sole

you're Just to saw And just that you more July? bit a the in months? June to that then company than secondly, questions on you rate confidence the Was the X July. me. in One, how the up peak up little it small give small XX can the And to elaborate what see Was the stores, proof that opening seeing stores? rate on X then in June, XX delinquency June? slowed higher for you on say, cited and stores next, many for open the points you July over you just small delinquency

Adrian Mitchell

so question. for much Thanks your

So is delinquencies, to did that the higher thing year. delinquencies in on mind keep this for we plan

actuals. a credit normalizing. the the saw spoken the of conservative over have environment XX than our was where time about the were We months projections more this quarter times actually first we that second number the last But in really

and done So that at the doing effectively, is the we what of that adjusted with June for the a trajectory more question particularly and we've we've on basis adjustments normalized been environment. to the moments saw I looking that appropriate spoke per July But few making a to what return ago. our regular we've a that acceleration, in Lorraine's trajectory

think As things about. we that kind think about of small are format stores, X we there key

the first experience the of experience, the the we're these performance quality of experience. the the all different factors The service, quality about we of of are including quality very and as of we at availability is customer look as a customer. quality the seeing the And the for think of numbers factors, number these stores healthy product, of the what

financial we look thing The business. second that the the is trends of at

how even seeing and that we're in And in actually the so our growth for portfolio, product, of continue this in in spite are lots stores growth see engage getting we're year-over-year We But we healthy to market. experience, that we of comped, opportunity see customers learning comping. are local better. stores around around

is about the excited we're that thing potential third that's The ahead.

coming months can format number are, the the of customers the continue there to so believe more do several that to see a And invest, months that, you be described, quarters. we specifics where share about where think we'll portfolio is timeframe over will but by small invest, when an complemented next on of big in We healthy we large that we able to accelerate we stores stores. and where a in opportunity hopefully box

Antony Spring

seeing Sunglass portfolio Jay, as that at we points that whole now small the And, expand looking we the that small now make to Polo very Adrian Yes. Levi's I Nike format we're and added Line conversion and host of the carefully add excited those the and have of in Finish mentioned, sure Hut are in stores. would metrics Macy's doors. other to proof And to and traffic, a necessary

Operator

At like Mr. over this to turn the I'd Gennette closing back floor time, comments. to for

Jeffrey Gennette

I November of third on and you thanks, hope So Thanks, everybody. all the updating results summer, quarter call. the of call, forward look on operator, on on for our that we you and last who's to still days enjoy you our the

Operator

participation you and Macy's. interest and your Ladies gentlemen, thank in for

the lines your enjoy You time, may disconnect and of or off the webcast at rest your day. this log

Macy's (M) 22 Aug 232024 Q2 Earnings call transcript