Macy's (M) 1 Jun 232024 Q1 Earnings call transcript

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

First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn.

The call over to Pamela Quintiliano, Vice President of Investor Relations. begin. now may you Pamela,

All Inc. Thank you, us. Jeff thanks joining CFO. President, everyone, our Mitchell, and our COO Good me on morning, the detailed Litigation of of the performance. and Macy's mentioned to Spring, With Tony forward-looking and will subject are harbor and and CEO the the statements of elect; operations, that Chairman with discussion Act Adrian for these and assumptions Along are CEO; operator. and we our to are release, contained Comparisons results call factors These Gennette, Securities with of otherwise be Securities is results macysinc.com. Unless our press has where certain safe provide be could posted XXXX. and Private a provided risks comparisons versus financial today. materially will first the XXXX best our and statements XXXX our on to been actual to in are discussing subject website, of measures. noted, to presentation differ uncertainties quarter benchmark expectations the non-GAAP the from section filings appropriate the providing we XXXX. Exchange Investors today Commission. In A forward-looking provisions Reform uncertainties cause

additional it will replay after that, I'll our Today's A call. With call website. approximately Jeff. financial find over measures webcast on of section our conclusion to as available information website. the non-GAAP can regarding these this X used is You Investors well turn as of the others be on hours being

Thanks, Pam.

us. joining for you thank and everyone, morning, good So

effect we to temperatures cooler On more U.S. April. We an so how that more anticipated the moment of previously let's as XXXX layoffs we pressure landscape. be intense we and and to the that consumer, they to reallocated current our headwinds. in and worsen earnings extremely take dynamic expected factors, essentials Before getting some have spend and Subsequently, our acknowledge further a in demand call, environment. quarter started, team back food, fourth I to compounding believe began note, On macro said Macy's, compared decelerated discuss to macro XXXX. banking to mid-March and navigate continued to macro crisis the pulled than headlines identified trends but in services. at were surrounding they particularly were The want

we for have the year, remainder second in the continue mid-March compete. planned decisive the actions year the back headwinds assuming ensure of and macro well business quarter and we our positioned are through half have of We and to potentially to April taken worsen, the

We will our go of into and these were more below, We gross achieved net adjusted EPS expectations. sales versus March shortly. year-over-year. down line at and February discuss in But was X% let's results. largely quarter early expectations inventories were diluted detail with margin performed rate on line first, above first $X.XX in

trends mentioned, break important Macy's, confident previously We worsened product including in of events, entered season As Friends Family the late had several in April spring Easter. and and and our March.

most last pronounced including was conversion customers Macy's, licensed carryover. at quarter but average we was inventory limited household the the product. an and XX.X% and fourth or $XXX,XXX X.X% for apparel declined and XX% too and weather and comparable an early increase nameplate, under X.X% on were holiday summer quarter. In largest consumer about a sales set challenged. with year. experienced our and to spring sales lower had $XX,XXX in XX% over-indexed basis or and demand began As exposure without enough at an time, versus We By weather-appropriate roughly seasonless March, the fashion, Macy's decline colder Store balance plus identified April net income not of product was occasion income under. its has declined across worsened hindsight, spring we in with inventory Consistent progressed, the of while of early converted average which The of country nameplates. owned extended the through middle below Most by special enough of but period traffic fashion majority in and discipline, temperatures did healthy have we with sold early the fall and with well footwear.

discretionary sell-throughs spend need. as became increasingly closer in to are they more our expectations customer below and Ultimately, were deliberate how buying allocating

On categories less all career that and discretionary tailored we women's beauty, outperformed. and fragrances, dependent, men's for side, the are are sportswear particularly flip weather known including

a We strong back merchandise XXX top to sales value operate approximately year. in licensed point and curates plan currently of product more proposition. plus We encouraging. At emphasis freshness within XXX outperformed categories this table, from Macy's and on basis which the within is locations which and certain by greater a points These including which open pandemic XXX stages, in lower store store comp price stores basis. and flows on seasonless comeback owned experience a to full-line locations began a more also a often, and including operate textiles, X stores housewares they benefited Backstage,

beauty from Bluemercury, luxury luxury product Our or X.X% pressures, in and again At were mix owned to competitive apparel with a contemporary the exceeded outperform. luxury versus declined Macy's. benefiting demand as line outlet, appeals results gain rose customer our Net Net unique also accelerated in and down as sales also and expectations. part color. Quarter-to-date, the X.X% were sales nameplates. sales clinical XX.X% as and nameplates, strength basis medical skin our April last have housewares. and X.X% across from by and in although rate as at care impacted year, retailer. licensed gain intensity fragrances, on X.X% not the roughly Bluemercury increased of and plus position particularly a were comparable nameplate beauty, a expectations, Bloomingdale's macro Bloomingdale's sales women's relatively undeveloped well a trends versus registered Bloomingdale's comparable once differentiated from year. Bloomingdale's men's results continued XX.X% to value-conscious more last same an strength that benefiting

customer has more has turned our to offerings well our compelling seasonal, weather price responding the As points. and been

also likely pent-up demand. are benefiting We from

Although improvements encouraging, consumer. improvements closely income on healthier have we been reflective bifurcation these by strongest at are a change have of These whether or of and not we potentially a a indicate clarity further monitoring. customer not do behavior indicating trend tier, which Bloomingdale's Bluemercury,

first than While at not expectations, would end Macy's, strong we Inc. liked. EPS better have as was quarter ultimately as our did we adjusted

the We will not to quarter one problems carry next. from

April ranges they quarter At time, low persist, both we second improve year more our our the full contemplates potential same as view deterioration guidance while are of quickly high to mid-March composition end back taking through of a and assortments heightened of also experienced We have moved the in of half. pressures the customer. cautious progresses. The macro for our the the that end year assume

last to if demand of to of as that product we remains be we into position, liquidity demand use to If strength our will the confident they secure we ample are areas is strong materialize. right and improves, year's will with which curves, Availability levels inventory reserve, chase justified. able our above receipt goods support robust,

are positioned to Now ensure let's compete half turn have we in the to we taken specific well to term. back and the actions longer

This and the and we demand. at rapid as in clearance impact first quarter slower merchandise. receipts accelerated that transitional have depth as well following flows we markdowns quarter, promotional liquidate events, second May unable deterioration timing to of seasonal Macy's to moving includes spring the were the For

approach tools and science are markdowns margin. utilizing merchandise maximize to to our pricing We with precision promotions

proposition of We have also value adjusted receipts. and amount the timing, composition,

For down-trending that sportswear gifting categories. like we our and quarters, are the and are on leaning into further and fourth are reducing emphasis third beauty, categories working, career

our and beauty, including destination, the strong Mother's had we this in at quarter as we our specifically and toys. last and year, Day position have that gifting to more vendor fourth relationships in exclusives Valentine's performance great year, newness leading where Day Looking will compared a leverage

for flow weather have Macy's. We need. of warm goods and closer made to balance a cold the need also product to at better Adjustments been recognized

within elevated to to positioning more Other our even taken, algorithms that are speak is to seasonless the right omnichannel shopping the with to with fashion working points position pricing content reflects maximize provide we year-round to offering offering. experiences. receipt excited compelling margin core This including that enhanced bringing does brands In base. brands, price. improved diverse partners and we the mean lowest assortment, appropriate our to mutually in-stock customers to care This not marketing messaging means It that our the an share enhanced our fashion-conscious morning, with sales, addition, actions fashion our and elevated Macy's value flow we and and offer and content. customers imperative stronger relationship appeal have mix and about national strategy are and that back right Value value are our we Nike price proposition. It nameplate the updated competitive fall. this private to assortment, of beneficial

reimagine Starting look embarked partnership goals. Footwear online our remain locations ago, Line term. preservation men's, in in with locations. our in About on cash We tall the in capabilities kids, additional prioritization be bags and forward our are focused plus women's, across will Nike and October, We scaling critical achieving spring Nike and ways of and expanded cost-savings health months working, XXXX. project be nationwide. our including clear to an big key locations sold complexity. Finish sheet apparel, licensed size a to reduce Balance selection, and on we to enterprise available long gear will key of to drive X continue

XXXX. of that we $XXX for quarter and savings million additional and cost trends, was first in million identified $XXX late $XXX to year savings roughly million Given of an work accelerated, this have

CapEx We investments have $XX will our the Adrian also but growth in year's vectors reduced remain this protected. by million. specifics, planned discuss roughly five spend

than our results. Our recent greater ambitions are

am this at and aspiration team continue retailer, of rate respect seasoned needed strategy a EBITDA beginning tremendous intensify on lead to are to what enabled challenges financial up have has next to year. success. to innovator, the achieve to strength I levers strategic as will risk further of and And I that and Congratulations Spring. goal a merchant for has double-digit a well turn so our brief that and pull Chief As set And call low future. is talent that a to you the to for and facing, Chief and pressures thinking an professional for reputation and deserved. Adrian's builder XXXX. The excited growth Adrian's from I first and CEO, that it biggest acumen have we amount our achieve the and Officer marketer Officer, margin confident continue over we of forward single-digit together. us is we'll personal an in you us brand position consumer Financial to is all financial promotion well-deserved future a adjusted sustainable us Tony developer. as you're current and to right the achieve to sales that incoming He hear an the we marks have low to crucial excellent investments look know accelerated comments. into him achieving to understand going both. I Tony, some I'm make Operating

have Thank and introduction, thank want for Macy's brands their honored team tremendous Board humbled Jeff, acknowledge commitment I CEO for leadership to February. entire this chosen And and their support. to our leadership you support. and been for for and you also ongoing our take and to confidence of on role the and Inc.'s how upcoming the to our Directors Please business. I your am colleagues know to

met and and consider I I leadership. teams the you to approach generalist, brings have not of high curious to those who myself I background of before, self-awareness with a lead. let's my For level a ambition start

of ago. Bloomingdale's many I years career know, at began As you XX my roughly

my I've and between somewhat split merchandise, my marketing, tenure, equally senior time leadership. stores During

was Today, I've As intertwined area viewed I as realize driving in business. I and look how all back, complementary was are. the the the always I they that engine

merchant, must be compelling. As and curated a our products

engaging, be inspiring As personalized. a marketer, and must strategy our

experience a source commerce. large closely our the course, and is to brands Of linked digital our window as of

a around an As must our differentiated leader, enjoyable experience stores centered and we on customer. rally colleagues the

we must recipe leader, Finally, right the of senior as all of elements. our includes that balance these ensure a

acknowledge distinct I leading decade, I've moment the want the of last to to there. privilege a Over Bloomingdale's. take my team had

XXXth our tenure, a achieved customer we my record anniversary, off a colleague and and assortment sales loyal and During following. has Coming curated offers Bloomingdale's engagement. merchandise

and Inc. belief Our in which program unparalleled as representing the to is to success, recognize and so the but outsider brands, bring modernized of satisfy that loyalty Macy's acknowledge we've experience our view and an multichannel, marketing of an is categories. It's private our to personal be multigenerational activations improve. best-in-class, animating is made events, to national a room which of. it's we perspective of future customers' up what uncertainty. all as the at to makes us on-mall potential distinctive retailers business, is for our Bloomingdale's and I to progress for our important to incredible portfolio with opportunity sets platform Macy's important my there. tremendous nameplates, to My exciting across brand, heightened beneficial during many underscores off-price we've this period our insider pop-ups appetite gives us have which campaigns, That nameplates brands, also multi-category luxury, to and part off-mall,

to I lead digital months, what's to near-term of which merchandise, marketing maintaining and thing progresses. I'm which do will I thoughts a our is term possible for areas strategy. intend continue incredibly view. is eyes that my long responsibility, as to not look on new renowned One have clear and a know disciplined next and certain controllables. several Recent I learn Over the passionate business observations approach my I to listen and while with and about. so sharing and focus and outlook include the one revised a my results forward this changed year

weather rather However, seasonless of quarter, the first balance than out we were cold spring overemphasizing seasonal merchandise. in merchandise and

quarter the amount adjusted timing and the containing holiday. the buys of markdown have second related for and and composition to the are fall We

to I our will designed line resources moment to each are on that term. on want top our and long the my provide the our to XXXX bring in five and to take back Inc. now Turning vectors, to a leverage thoughts teams growth of which focus beyond. Macy's, growth

we each will early, believe contributor future. the be meaningful that While still to a

to appropriate believe for First, combination target let's our national that start brands tied brands, the the all is of of with Macy's compelling success of curation private brands. popular I private and firmly brands unique our the right had and equation. more value our of I one even at their formulas That both private compelling of Macy's has have the new with In role, brand closely success Bluemercury. my of been strategy. pleasure team Bloomingdale's on the customers, working

which reimagined, respective have and Women's segments outperformed Room Men's first at the apparel During Club both INC quarter, of their been broader Macy's.

offer excited launch are later our Looking brand, apparel this ahead, of women's tuned. we will and summer. accessories newest about which the Stay

day and customers. frequency existing can higher localized every off-mall us both through Our our is at second encouraging. optimize growth vector small portfolio They closer format enhance on-mall to target that's stores. a store new learning our and are of Bloomingdales' physically more large-format and our continuing traditional trips. We're are experience with encouraging very a replacement, and these stores locations customers, our serve how allow to to better we opportunities. balance Macy's These densification total market Results

small Customer our and year scores, stores owned and physical Interestingly, are helpful comparable experience environment, of one existing plus open are in colleagues group. positive achieved we regarding licensed quarter, first ease fiscal format the where cannibalization least sales being formats. the high. markets off-mall experiencing we checkout During particularly limited-to-no opened at available

in-person dominant customers be retail about store additional Long accelerated locations this format further. growth. off-mall sharing shopping as work potential U.S. consumers, look continues to to we the evaluating for enable as shopping a term, Instead, small we're trips. opportunity develops more We and bullish are forward remain to making method

vector, Macy's to our on growth marketplace. Now third

resulted our and which are expanding to a and has existing new basket customer increased in We size. categories, customers younger new seeing respond

the quarter, rate a marketplace. approximately XXX quarter quarter added not units approximately seeing those at of ] XX% We're growth brands. marketplace's value of over fourth XXX strong order average indicators brands the roughly ending value and the increasing order with shopping merchandise to During customers gross and XX% we first above [ compared per XXXX

very in are a fall. to marketplace excited Needless Bloomingdale's we to say, launch the earlier

Gucci, With are at brands, teams to The both customer. Based and we're customers, growth Herrera and our luxury to since which nameplates. has beauty with in assortment. price continue we've luxury many to commitment Margiela; we're our marketing larger more record digital satisfying vector just Macy's This area representing sought-after Carolina invest La environment, limited on luxury. XXXX in few. nameplates. their attracting is XXXX and is the and Maison to their fourth brands, Mer, beauty a business in even exclusive; both We distinctive relationships store, fiscal and leveraging partnerships a including began Ford; seeing at Bluemercury, sales both Saint Our Armani; Bloomingdale's and with first our is opportunity current made At Macy's, elevate that Tom a even the horizon. name for of offer the more power core on see an marketplace growth Beauty, vendors excited I and a added in Laurent; resistance very

to but vector, Last and offerings our both resonates believe me. our personalized merchandise communications. offers really XX I for time The the a unlock least, talk right power over and with the fifth at growth true offer consumers with promotional will million it right to messaging. not be certainly

different earn-back leaned personalization addition margin personalized which Testing tests, expansion offer growth, predictive of behavioral cycle targeted typical customers. foster we category were [ structure. to based loyalty that propositions and the us by and a sales stronger level our event offers at-risk and is first discount on such During customers' to accelerators as in life offer. This suggest engagement. ] offers customer data's can offers of allow models These of various within to customer's show value quarter, into

and to Bloomingdale's our our Bluemercury. have inform at accelerated and use of view opportunities second both learnings analytics-powered the We campaigns quarter, we'll in

is that am even him how I working let his he be and Adrian, What so years ago. almost over X seamless Now so and noticeable bring closely complementary transition thoughtful leadership this before counsel, I I joined it on more have excited partnership. the turn impact to to makes and to say me Adrian to with had the a this since succession organization skills the He has company. and

flexibility debt long-term return interest to health, the in the us shareholders despite and the and give until sheet to including fixed no environment. balance continue debt financial invest capital our XXXX opportunities Our macroeconomic rate material maturities within uncertainty to

profitable progress. Macy's growth. getting you sharing With Jeff's support, all we our forward to to and will look Inc. I to of return know

it I'll over Adrian. to Now turn

chain everyone. good and thanking and ongoing start belief for morning, me want the I years Tony, go by recently supply expanding Thanks, From the Officer, and in deeper to and stores, Officer three technology. Board to have to our my long-term bringing of on design as With goals. Jeff to their Chief the responsibilities responsibilities my execution Chief me. opportunity new Financial Operating and as ago include I into trust

maximize and operating this am a that to alignment efficient sales value, flexible on on those business. I will and that on longer-term more growth faster, meaningful aim priorities As margin building creating by more we and have impact opportunity model hyper-focused sustainable a drives

infrastructure as omnichannel aspirations, do the a further serve we I small-format capabilities chain we shopping to about And our and flow, to and better end-to-end What merchandise experience do store accelerate have omnichannel we growth growth and can our physical That's and support to the updated assortment how think shopping while in questions. several planning experience? our improve our modernize effort. stores optimize the evaluating do localized How technology it, future. footprint deliver aspire enhancing inventory started our multiyear supply how with the customers fundamental with we to tackle I to

areas tour, technology I've listening DCs a lot last identifying the months, with spending opportunity. on stores, time Reflecting of on more team a two and the in been

understands spent experience up stores have with transformation time supply inside large-scale the impressed highly consulting technology, seasoned talent to nice retail and of in businesses, I on years in merchandising, stores on operations. and stores amount strategy, and these in I'm across and a see serves have marketing out data and turnover chain. He analytics, while with encouraged and department retail balance my stability is been significant also including and these to transformational a fashion operations, I've retention I've As focused Tony. and ramping and my in His hiring, been been as that specialists operator the modernizing teams. background our a

what the We future. of are needed Macy's aligned into fully is propel to Inc.

liability, a markdown to maintain we'll disciplined and differentiated unprofitable to and customers will products approach our and not sales. inventories our value We chase offer

stakes. us, now For that's table

foundation Looking margin of XXXX. while growth aspiration ahead, achieving our recent of we growth low to low businesses Despite and starting remain headwinds, simultaneously and investing sales will the continue Tony committed single-digit core five in EBITDA I our in vectors. strengthen to a sustainable double-digit our

our Now outlook. let's an update quarter first I five our before of the results walk levers XXXX through value-creation on provide

We a sales. X.X%. Inc omnichannel net driven Macy's, First, prior and category on mix. year. of the licensed by sales versus owned of Comparable sales decreased plus X.X% decline owned increases generated X.X%, billion, an $X ticket rose basis AUR

lower we combination continue AUR improvement ticket the of mix. and markdowns through expect For year-over-year increases, year, to an in category a

Next, revenue. other

we SG&A. As reported quarter, reported own cash revenues reclassing within revenue Network to revenue. were Network beginning Media card previously this revenue Macy's and was Credit credit a Media in, other reminder, Macy's revenues while their as card are

net Credit quarter, sales. million, X.X% of $XX During revenues down $XXX card last were million revenues other were year. the from

sales, of of points net XX the percent portfolio. lower than primarily X.X% card or the impact bad were a higher credit basis last year, reflecting As revenues within debt

million revenue Media in Macy's was the prior versus $XX $XX million Network year.

the Moving gross margin. to lever, value second creation

levels was Our gross shifts. above prior inventory XX and lower year. margin year lean markdowns, by offset rate category clearance margin flat, basis of from promotion and was benefiting points mix XX%, beginning the Merchandise

efforts order basis decline and contributed primarily X-point better digital last improvement contracted rates, versus year, a on mitigation a point in per reductions to penetration. continued As to expense, it relates delivery cost in XX packages

last XX-month year-over-year, down is creation amount receipts comparable year, in decline. the The Trailing to sales half declined the to composition Inventory are drive sales quarter strengthen third the turnover lever X% value inventory productivity. of back sell-throughs in to with line in period. X% net second reflecting Adjustments inventory was beginning timing, productivity. versus expected and inventory and our the decline

value lever. fourth revenue basis a the $XX was $X.XX SG&A billion. of SG&A last year. or higher creation X.X% percent than is discipline increased XX.X%, million to XXX Expense as total points

As investments pay May implemented a adjusted year. colleagues was fully X these The the $X.XX amortization on was across benefits. SG&A in competitive stores rate for reminder, expense. in depreciation continued last higher the in SG&A XXXX. interest wage and the minimum of EPS colleagues incentives in dollars year-over-year and and lapping increase increases accounting includes includes increase for After versus and also quarter and taxes, diluted first reflects $X.XX

Lastly, the creation allocation. fifth value lever capital

focus is top Our liquidity.

sheet, take to We a capital shareholders. to allocation, and growth vectors our investments returning prioritizing in thoughtful balance capital to a five continue healthy and business our approach

real in generated $XXX million the million cash quarter, last inclusive first $XXX expenditures. lower year. we Free the versus capital was current of outflow cash operating We compared due to million last million. proceeds an to $XXX $XXX year, of In primarily invested quarter flow year estate from of flow earnings in

part our share million repurchase back bought million. we shares X.X $XX approximately open-ended for authorization, As of

paid $XX We also of million dividends.

to our Now on outlook.

a our savings start with Let's cost efforts. of discussion

cost Jeff incremental $XXX our versus an year outlook. million identified this savings for we As prior have of mentioned,

and impacting $XXX gross as will in will year estimate XXXX both small recognized the between significant savings and first XX% $XXX margin the has we XXXX, in A SG&A. been For portion be most and Roughly million, build savings of the will be be fourth million in progresses gross SG&A. margin, in Savings the and quarter. the be the remainder quarter. in to

end pressure macro with The worsen assumes while year full quarter end our April. through experienced levels to they is both customer. second a so signals, our and cautious stable it With remain stance. discuss of let's take contemplate mixed Now pressures on outlook, prudent high low the mid-March ongoing many which in assumes

to the financial to do adjustments. that trends will that, the points and reserves improves, if the proof to worsen, are But past and disciplines years. May going improved lean our and operational We enough. Alternatively, implemented we demand for better. do chase not intra-quarter. we can further flexibility and wait we continue to several our will have will We we over embrace trends If into demand have are make

We have the and been adjustments have and course third to quarters. made fourth second, correcting

year, be year-over-year. are Looking license billion down at Inc. now $XX.X follows: about sales X.X% full to Comparable XX-week owned-plus Macy's, on for X% to $XX.X as our a of the to expectations sales basis billion. net

compares revenue a quarters. reduction to to and outlook XX% Other with As for is primarily card ease net The in XX% about credit revenues credit that. the X.X% in accounting third reminder, of fourth our be card revenue of margin in sales reduced ensure position. of to expectation annual quarter our XX% enter quarter expectations. second on in of result XX.X% a gross the markdowns drive and third A rate the a deeper clean to we our for sell-throughs inventory sales

change in second The quarter not course. should be viewed exception, a an as

unchanged. Our philosophy remains

to gross on focused protecting margin. be continue We

intent dollar the margin increased conversion expansion. with to year the navigate and will stimulate We

automated outlook our shrink, to estimate annual we promotions from enhanced an rate further call our This solution inventory initial expansion Our shortage to pricing which elasticities, pricing capabilities expectations. owned includes increased an incorporates category gross unit maximizes have margin in margin bring Starting we opportunity optimizes that direct gives to vendor the us QX, owned for sales and turnover and to our science to dollar inventory inventory. relative automate portfolio. left strategic also

total expected to better us we SG&A along to a our be and a In about net a and discussed percent competitive as XX.X% of to account total percent revenue continued taxes, as to to This $X.XX competitive roughly provides savings impact with reduction X.X% reflecting work location-level adjusted X.X% into the revenue is increased pricing. our to our previous decisions from of $X.XX the intelligence, percent also we XX.X%, takes enhances roughly negative of sales estimating X.X% annual relative of a of X.X% around as refine expectations, of expectations. are After EPS a EBITDA adjusted in diluted which understanding our earlier. And to cost shortage landscape $X.XX. addition, the interest or sales.

does consider but the does for the the half. Our adjusted of back impact repurchases assume share proactive guidance EPS actions taken not potential

second billion to the to XXXX. quarter, net more rate expect For basis margin than quarter the Gross of down billion. second of be $X.X $X points for no sales we XXX

to with quarter time quarter adjust first address to seasonal second May unable markdowns receipts clearance The includes expectations. our sales were remaining that to inventory we and align updated in

to be basis. to is only last We EPS on digits down be expected expect deterioration $X.XX inventories mid-single to percentage to to the End-of-quarter to year diluted low to a quarterly year. Adjusted prior this be $X.XX.

and how product, we our control the our experience for no There respond, work. is on best environment While offering the cannot and finish macro consumers customer focused line value. this remain we

Over made organization. significant the we few years, the progress past across have

We have upfront markdown on vendors, shifted respective our than and by to analytics category our build into Inc. an negotiation reduced cost data the incentivized model at their level with performance and reliance processes. Macy's rather merchants allowances,

to nameplate our further than running help incorporate much past. should Looking is Macy's ahead, are in the and place the shifting disciplines. together These which accounting business how we cost actions a educated more speak in to XXXX, healthier from

environment disciplines needs and our we current remaining March, the long-term The our when a our culture macroeconomic in recognize with we foundation the to goals. has balance meet climate while business early than our ensure decision-making headwind into we introduced are first responding on of the executing on our us have we gives and we to customers. anticipated growth the agile outlook built larger created while So originally annual clarity

remarks. for persist. low assumption achieving sales fiscal a back turn in I'll that, the with to that low growth to With EBITDA pressures single-digit and margin over double-digit aspiration beginning committed of some XXXX, even remain the sustainable closing our call adjusted Jeff We macro

Thanks, Adrian.

before, will modern do storms that and we has We again. weathered rich are a a store these with department so history

financial unique periods uncertain that through in process and operational us and advantages we allow health, to the navigate efficiencies to invest tools future. data-driven Our are as continue

a We are competitive at team here Macy's.

We standing are not still.

committed to our are business. We serving our improving customers better and

protecting up EBITDA preserving are half of we achieving XXXX Q&A. including teams it remain our operator, and we will focused aligned, growth second our Our fully the and open goals. And for opportunities, on that, in future and with sales

of first [Operator from coming JPMorgan. Instructions] Boss Today's is question Matthew

elaborate by where backdrop, of helm? inventory in you where your category as take dynamic level, hand largest the do with excess this on you seen end Jeff, see the line your on comfort clearing Tony, in any the finally, low-hanging and recent you congrats Adrian, acceleration, And the the across just for income with cohorts? whether have or So And confidence you could this high Maybe for fruit first, trends? top what's acceleration particular, most on promotion. then cadence this quarter? of opportunity by

go over So then first, to Matt, Tony turn and me let and we'll Adrian. it

that at hit looked was the what expectations. the On in happening and demand -- you when what saw February the our you of cadence our was top line,

the As to did of even March, in decelerated it early March. then April. further of and It in month deteriorate part latter started the

first So the have expected had look aggressively the not so at transitioned have it We categories, as what back we started did we we We the the we you half had that some at not appropriate well we saw we -- content enough there had fresh at the of and seasonal basically fall and sell-throughs and into was spring we there. price holiday, down. in receipts of those when in through pretty half. and when carryover in thought that seasonal, regular the did look transitional level mark and quarter to sold we categories

see levels which is to into the units quarter where with So starting we're of third to inventory come in deal the going be going appropriate to that we that's the up, kind we're second the to where when those bucketed piece have quarter. that

you So and you at in of the of that trends across nameplates, May, Bluemercury. look when but on the look cadence top be When saw most pronounced the back recent you definitely kind month a at Bloomingdale's bounce line. the would of

attributing So or comment improvement that we that is is we're environment? a that two making. saw that's We're it an definitely to that acceleration which where the of answer is pent-up know things. One the demand for the categories, yet. weather warm in don't macro We sell-throughs it's

the at of all guide rest the our second year, we're and through by the the of we from by We brand, at So went extended half to reiterate that between of for when quarter back the businesses even become very March end the year. We April at, look looked through obviously category, just you the of get XXXX. important a looked way and much the X-year CAGR. quarters. at CAGR. Certain year. the We of to the X-year both at you differences more looked looked We and scientifically. penetration at lots have We as the did this back trend balance where

then how the end the macro how top conditions in end. really we that's and guide looking step worse. was approached the looked the if were get we So lower of they And at at we when

our look I at customers moment that about the on is how what's particularly is tell to our closer know you strategy, much customer right side, overall to sure is need. that implied in objective buying we in our transacting. What would now, to are are that the the guide responding make Macy's when So you they're

the that inventory be opportunity have we in to receipt to able with our the market respond have of is So abundance to to all prudent. reserves time to send

part Tony turn first to I'll your of to So answer your question. over it

Matt. more say, about Inc. that execute can one simplify of to the scale The climate. and an off-price a I to luxury. for business certainly should asset. believe we about to despite Thanks, the for obviously our customer. I our do the challenging make I Macy's business easier at that the and however, customer being passionate beloved should portfolio team I would both a colleagues more really excited I'm and operation, our opportunities committed Macy's excited be the fully dedicated, really business see, opportunity experience from leverage to Macy's be enjoyable overall the the brand is base. results off, multigenerational first with see as

into our or good data STEM opportunity a done we've of job think of I business. part on leaning the the science

Steam, you curation, on storytelling think I work imagination, inspiration. our the we of do think and more have if art part of to business,

Terrific.

answer the as you the and Just out of inventory of out is topic confident The inventory second record quarter. the we're And to track close simple that through clearing the coming inventory. on management. around in speak know, have we

is quarter. we're better track getting clear, and record better every and Our

Just to X% X% in perspective, year down ended down in We ended inventory. in first last we quarter the put inventory.

so to on confident the digits mid-single given inventory, tools. quarter we expect are our to our capabilities second down end We and low

for think about volume, inventories and the to out put just coming we transitioned the was fourth out mix in quarter And coming a terms having quarter bet content. of were carryover that the Now of first able and reality holiday. the fresh context, in early. in is is way limited us we the we what we the experienced clear of to have because That

men's numbers. sportswear, in for entered the position, But healthy when career we seasonal but spring numbers; our So you the at very a beauty soft tailored, warm solid most numbers; look healthy numbers; of weather, healthy quarter, weather cooled. content,

So a on. a confident we're get which to putting we actions And inventory we that inventory be the we'll work our track the tools are in fall place, and on to perspective balanced in our able have back record and clear through season. entering

question is Oliver of next The TD Chen Cowen. from coming

in back and implied guidance. promotions for and Tony and was what's I margins the half merchandise Adrian, Jeff, curious about

the monitoring do counts. that you are take on what's more there strategies you As And with consumer just likely most dissecting efficiently? things And your that. assume broadly? lastly, that love is think what the do with behavior. to those you you Tony, in Would transaction about volatility How And do comp love thoughts in respect those? the also the the younger on I that? duration the of your markdowns how opportunity would customer do and I you're QX, take of

me let your of take two questions. Oliver,

the in and first for we anticipating to We're be look both margins, it and that XXX second, obviously be we fourth saw last in basis think when last that So thought we that merchandise going at year. of the year's within indicated, points you we're to third was above the going levels as that, the quarter. the

as year are and on Now the you will doing from that and we've right we spring anticipating markdowns the marked appropriate price that higher we we doing overhang the we those. down previous were be through first there. part the higher before will you is it year. What than POS when expect been can And take what have full see the now that look us at

customer have that sharper has looking there's right is for expecting So we're categories which our value and continue. And higher a number did playing points price year. through. in promotional which then we last categories know on AURs cycle that got of -- than to in we a the we're getting We've now. as margins that other getting higher We're we we're that

with where we're are be doing arms to in is year, what price of comparable what we're flash doing in You the and going we to But our that outlet where seeing both last were to all Those specials as as Backstage. content right can well we're what and we're be. with at sales. now see looking going

Probably important confidence of fourth of all So that half going be that back our with to from we respect quarter going at when and look learnings categories the we've where we look based pricing we're have of a we the all on at had last with going back we're where year. half to be is the rebuilt when to we're promotion. with we be newness gifting how and lot the more with to where

merchandise So that how is margin.

I've continue as to to promotional be margins merchandise the and expect stable So described.

So Tony.

question. Oliver, thanks for the

to will a Let me multi-generational attract first, say customer. we continue

five I in with customer grow through in think through channels, of for, I challenging the and our an we has younger of advantage us. shopping generations inquiring that we the a of department the and team it's looking younger brands. your market being than start starts how and fact store are the first with consumers brands with, But generated to terms business with those having have so more years customer distribution proud marketplace merchant our we I'm base, question that team target the own or ago. It the be did Bloomingdale

the a We powerful the we social first have starts that And in strategy. is know Second a strong presence customer then making sure younger obviously digital online. thirdly, space.

life do. I we've think being add still also more brands at progress, would some great have I of work made a our moments. that we are remember, all part to of

And customer. a is younger first opportunity job, that we I all a anniversaries, of connote share to those first greater business. have think whether birthdays, that house so own XXs, And an wedding, sweet

given clear margin, and the just When that the Let regards With is at want for consumer. consumer gross to softness to more of Jeff is half the have point the year, opportunity to you the we're regards year. the last our the And that than to actually being about margin, than on cautious deterioration about quarters. With very then I basis last experienced higher back on beat third year, the me fourth we isolated the margin, merch to annual amplify outlook of quarter. consumer. going I'll for just to in as second think be it on and the a to we be XXX no look made speak we the that points the year margin

May, of seen of tell month the we saw early April. we But have slightly trends what it's too to out perspective. in coming better Now from than our

assumes end the reflects guide So consumer of and we're of the the high April to our end approach actually March cautious guide, which low trends. taking a of worsening our trends,

it us, Is As too For to tell, cautious trends it's values? new more so weather? we trend? pent-up think about it compelling demand? a warm there, a is stance. taking on May early that it Is we're Is it the and favorability

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

trends lower-income opportunities demographic Jeff, I your the further then much further and into traffic your these quarter you evidence cost on expect seeing bit you do cost drop are you And bit down can to savings to line? the more continue Where to on from? ticket that you was optimize May. bottom you cost Adrian, context the provide specific sourced you there are demographic? cohorts sub identified. a moved And savings to or if a How and among being the engagement customer wondering that structure? for little your more seeing demographic pressure cohorts higher-income as could trade provide between ended on Are you're any of context or additional

So question behavior. Brooke, let customer me start your on with

Backstage year. past in we're cases, is that yet. brand, to entailing all and increase we're it's percentage. or of same that the What down have to customers customers our to the across last Macy's, is not see same dynamics seen is is reported basically not in either responding their customer What speak you has they been seeing basically transactions, we're types, down visits we some exact what at all more what our size the an with trade about Market trip, they're spend about basket had responding we've As I'll out of quarters, AUR are seeing seeing of Macy's them. When you a in exact look another that by the in

So about what buying they're what same. the size higher units. x They're is basket doing They're and they're of expectation the is spending the buying going that's so AUR, less out coming with with. they're with the

and seeing But house, ones aggregate. we're when that main Backstage you the before. getting up look showing of Backstage are in that them we're where one but not you're up spend -- are in the in seeing more The didn't showing at types in out income that seeing, you're that

month separation what a was of Bluemercury trend trend, saw the Bloomingdale's. well So May, the at in in improvement though of the as both the we as

that right radar than the obviously, now see up on Are that screen they're one they is there affluent healthier watching customer. So Roach, our something -- that's carefully. more Macy's to it customer, showing is that does very

ago. give to of this me a about months great savings, Brooke, cost work with bit With well. be regards let as little you to We started X context.

trends the really of been places. that we've what The comes those year-to-date we saw so accelerate savings from And quarter in doing, and two source first is the activities. the given

The first about represents is which XX%. gross margin,

really second able carrier expense, our our margin, and focus been freight, we've delivery The network, on rates. our lower contract around to inbound we gross SG&A. Within is

we and should million an trickle around the The actually the is we've remaining for of SG&A can organization non-payroll repositioning is complexity the expenses identifying the about that it's for business, something within incremental us. this opportunity. balance $XXX So out system. This year, of really SG&A, identified future actually reducing take into on side growth the that years and operating

$XXX is million. $XXX rate run to annualized million the year, Next

vectors at growth team to dimension the are in appropriately to $XXX CapEx million. growth actually to that In we've investing the XXXX. addition protected. to clear, initiatives laminate back the our about But environment, We're forecast to and reduced in billion responding be the to from get $X

we've where term. longer the very in we're adjustments be surgical, been making just very So disciplined business it's good going for to and

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

bringing Tony, Bloomingdale's you AUR store store And Tony, Welcome, do to welcome, for Bloomingdale's can little strategy, please the expand back the see from on see can which on also, to categories. in a year, the half you improvement Macy's. in both component? small bit over the you're expand what and And lastly, as for Macy's the expecting of you

a Dana, was do half. And our first lot higher that almost take going -- the mix. one me AUR from you expect have to AUR. increase. let in quarter the a back of saw we're X% We on a what X.X% is that A category so about post

that So we're and environment, on at when at of value time. looking some we've categories as in cycle, the searching us, for at particular higher when competitive look you you that look which driving last there. based AUR trending they're up customers the that is below AUR our where price for matching, categories is see our you other are ensuring that we got best year what in the how see There's our

So an we year-over-year. do expect improvement AUR in

we markdowns What in for shape. have back for that planned expectation is second I'd in about the good all well talking just we're up in and POS outlook quarter as that inventory is really bring that doing markdowns we're our think half reflects the the as that both I of clearance. our heightened the what

heightened chasing other now very that. in categories, we we are So merchandise, opportunities spring in right to are are while we committed

trending our out that business, and available reserve to in purchase. of our inventory the there always of ones down have because across is are freshness in that's all we market We content the have even the name the game categories,

So our collective any merchants rewarded remember just Macy’'s it's on brand our doing. how merchants all based the demand signal are have, that that and

opportunities being time. us right right for customers ensure the there's the So right are with huge to at the that addressed content

going. the end making we're with of that, improvement all sure and receipts through there So AUR but customers our day, that where of our are at going are is the consistent but to -- be

develop am. stronger Dana, Bloomingdale's I than great, do the nice bigger that I we but to curation, to business reframe connect of the representing has strength business, strong, certainly how one we offer. Bloomingdale's base, brand another. each is again. question. question without one learn their from we is programs best No can assortments we of versus other appreciate large portion is expanded in redundancy do your becoming of customer would variety a Where portfolio. best I stronger a a for brands. fan our bringing a Bloomingdale's create But each customer how the

While frequently, retail-is-theater, compelling a more are part Flower their Bloomingdale's The brand base Parade, programs for credit gets heritage. of develop Show customer motivate all to needs online. in-store engage Macy's to Each the both The and Fireworks, to

to we can So do I'm looking forward forward. what going

of is stores small With part you our focuses good format store Dana, as strategy our actually to that with growth well. to on be regards that. and

very what well stores is spoke the growth As store the that in about and not with. But in the those the the about conversation, we centers excited think conversations a format been thing the that box at we big looking box strategy, we're looking at, to cannibalization as feel that basis Tony size positive able power comp against we're comp. small we're on locations are having which good the to is we're about the what comp we've earlier is seeing on stores, no as

information things here, So we'll we're quite as on something progress. to and special more share

question The Citi. coming is next from Paul of Lejuez

over you're how how performed e-com And versus you could level? manage quarter similar off thinking in your was stores, if how if curious the fall into about store about came half to planning e-com the currently? isolated inventories business talk how Curious just would year saw on a inventory then the you the more I'm second it or you versus you

the and dot-com quarter. in however, came first case stores. was that to the happened dot-com year were that, of expecting very performance stores Paul similar and their We into going we that, be the were terms modeling to what in

basically there back the in do just as see where that penetration remember dot-com. to or very the either there. they terms we stores of coming are in of customers channel. transact resettling is influenced more This research digitally, were So by they what they Obviously,

XX%. after the we in in were in That of a of pandemic settles 'XX But And penetration high a XX% we XXXX, were digital. XX% 'XX, at in at XX%.

relatively big the and for dot-com with headline digital what I quarter, business off good. that on you to the expected. So has were tell was first the would pretty with is the in point both X been where stores respect consistent traffic stores we

So slightly up at in basically about conversion stores, in rate. both down flattish the online, same

economically expect we in Z that So digital we're but to to quarter. Marketplace be about going earlier beyond. And the was do stores carry of we about excited is going what penetration 'XX doing us ] this growth question, feasible them, as of beginning first between year of is But future in ideas the very is to in the an ones Marketplace. expect not with Gen customer, to where by attracting we're versus particularly think the it. We're in it and really the do one hoisted lot for big with have strategies, Oliver's aggressive to and categories outstanding past. reset be in [ we stages had more the that's Marketplace a the the

spring inventory, we happened the plan seeing performed expected else that way when we to what of with think outside sell-throughs as of off buckets, in the everything spring across and value has kind us pretty to it. different that much content drop So all it seasonal relates I in

healthy just to reserve. Again, remind, a very have we

MDA receipts. sales that on worked or to we buying in that working we're versus upfront plan, allowance into a a used we at all We've if model have back markdown an model our in by past. out the hold of So working new model costing the

signal we're buying where are have receipts seen really for customer perfect demand, here. needless not we So and the not not we

down We so as mark to a We've science good we it much how really relates got opportunity. have goods. pricing

that the science being pricing to better or versus where in our items customer carry of well marketing much and but might Levi retailers very as not that developing so demand how we values as common opportunities are on it in just based personalized sure responsive be, with well that like we a see signals We and we're competitor. there lot promote goods disappointed a the making wherever priced, is

of surprises terms talked in we So all lot what not inventory that And spring of sell-through. seasonal control, about goes of mix. into I say would that just outside a the

thing inventory. I amplify to The add, one things a would just few on the

the to back around of importance earlier the mix Going content. question volume and

think to sales half made year. the we align already for our we've the back the volume As adjustments volume, the of balance for about with expectations

spoke minimize back exceeds half The about thing important XX% mix taken which of year. The actions business fourth to earlier would XX% into were to going amplify half the our shift first quarter. in the our the beauty in quarter. the the gifting of back I the going going quarter business is gifting, one through the has And when growing be we're really the for beauty content you first in that getting liability destination. been into gets Jeff the is think QX we're the more half, into but in to and back the And into leaning

as So than we really and about have did toys quarter. forget the And last the in Nike newness, moving want being of Disney we with fourth a we're well distortion that don't into year we'll feel newness to ourselves position And strength. this year. more as you

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

group have here. couple a for just I the

opportunity the that penetration for First, year. was I know label higher private an

from same you've earlier cost people just at on wondering slowdown? outlined second, tech question just follow-up view invest all and pared last there? savings on to then if the in that And you your a been the demand Or the changed has and now I'm quarter? way plan has So still quick do where back in stands anything there

repeat on cost the could savings, didn't Alex, we question SG&A quite catch it. your you or the

Our apologies.

quarter in on the at was invest people No tech been demand The the you still pared slowdown? and last in that back or all problem. question that's you outlined way same to just plan do if

you. Got

will me brand, Adrian of then take second the private let take and question. the Alex, part your

private ambition brands the remains on Our same.

talk they was burnished. particular have basically been We touched growing over -- you've us as in time. heard about it Room, have been penetration. about call So and of have brands which our that Club been this XX% do see And that basically INC and

So they're at performing quite a well. got portfolio. what And then when look you we've got whole we've coming,

are We next all have XX being private brands the years. X.X touched that over

we're So right of middle that the now. in

excited penetration we're is pain customer customer against coming actually really talking of about basics. look brand why raise opportunity, and accessories, brand, we size margin at you that those are it's the key original value. It full in one first fit, for points But course, all of that strong strategic we'll do that address one only at is which that the private So biggest will is things the we'll the identity ] we and -- where when the across not sourcing, one the is you importantly, that, tuned will stay and the compelling opportunity. look the and, five when of design, the details big years seasonless really of is but Mugs on doing -- you brands basics it's with summer, women's. seasonal-based [ brand across think our new relevant the it on -- it factors. types, But give in growth out rundown a that. We're in quite about be, private and does

sharing we're strategies So very and those brands them. of we those develop all to bullish on look launch and and as learnings private forward

sight think the you're term. in the term I terms what clarity front I near and in about us, Alex, is losing Jeff Tony, not what's but of importance long hearing and today the of of navigating from

is in We've terms whether in to translate to $X spend capital there, projections $XXX and million year. whether uncertainty be in about terms million our in of people. that's be growth, to the that will what's mind that that being year, which prudent from keep will $XXX in So this invest environment The we've billion happening thing in $XXX the key next savings current reduced $XXX out we million accelerated to to the tech, our cost of this year. for continue current million

move growth we as investments to future will taking we're aggressive actions years. and this us the positive uncertain So profitable protect through in growth to period, growth get necessary that

to we'll vectors, with model. We'll continue operating growth more in assets. the efficiencies productive our be continue in find So to and invest drive ways we'll to our

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

and conversations you about that talked been how deep wondering for that of further and your to on I think a front just could interesting flowing And bit the on need, you Jeff, important the product elaborate closer and little I'm suppliers? with have if business. that's some

Yes, Chuck.

mentioned, receipt is that at So I to as when always respond look the reserve, in season. you available

not we're So advance. in allocating that

to when signaling cut of we kind the into of that back, us model that cost in the the MDA able build system. a customer all upfront is gave wanted we season, model versus jump we So something liquidity the when to went And that. that we're to on

take over year. has took you will sure our we cuts we see we that that the that of look didn't out did, well liquidity, do retain where the balance to a So though, been respond discipline you and when for for the that to play year. We full is down make to past receive sales total that honed the the year at balance reserve of

expect balanced to for knows their us. that to continue has Every -- not discipline a So brands. doing assets put categories us. are that really with We not there right is those well that see are had are conversation were against to receipts conversations we serve merchant with company trending. in own. And that our we're those that This customers ensure receipts that categories to and downtrend the that able single

that. on as So the to as we find plenty respond of soon how there's as mentioned, to every trending. we're And week able in inventory to things are I I -- be ordering mean market based single

and perspective, interesting. category the board, elaborate in saw housewares which a textiles from and And improving I if out across table of particular, could you you is what called other just wonder then And top in Helpful. areas. apparel and Okay. you

that few I next could in about on you So if what quarters that the was elaborate over you trends and area. just tells wondering that

Yes.

the categories women's we're quarter when been that So in our first of what and the you in men's, in from bulk drop think now right in apparel about is has our seeing expectations kids. the seasonal

all be spring tell early that early whether to or whether the would or is too again, is or content. and not not that content that And environment. summer So

of mentioned, we through as to But So the into we're that we going have is now. ensure pricing right right are we're units going that to all that working number the taking -- of strength the third be treatment. got color continues that fragrance, and The on across core. of quarter. What's pockets in is center beauty in going you've the to category business the rest strong

You've got textiles in with they turnaround [ from out like coming curve the has the Things quite The on home mentioned. there. like you're and going and categories, been a demand the newness Housewares that pandemic you depressed us Mugs see ] us the were for of fourth coming, real the opportunity our quarter. based tabletop, as to

see of there. see the -- We're see the there. the about the of starting robust. Bloomingdale's it quarter. We're last signs to life business signs call, in in Macy's On we We home started starting is in on signs really brand now looking to right We first to talked quite where our life that see that of side. for

comment look the to I think what each made penetrate that you quarter. Paul at Lejuez' a earlier, at look when how to categories question they again, overall So the you and categories, look to in Adrian is at need

plan and the higher fourth our and are of in like see those with about and where in positively that being customers idea the confidence back the penetration our trending quarter the half our quarter know is a this in for our our gifting completely de-risked So today we feel we beauty first for customer two of strengths for the is much having And conservative appropriate what guide we underpinning. year. we today what in

final We're coming for one The Sole Jay UBS. time of is from showing final question today. question

came us maybe a ask to a then quarters little percent is big we'll see together? of time had wanted can I from long-term sales bit getting how NIKE about Maybe tell partnership? the this expect just sort as it? that new Nike was how And back do you Macy’'s Or inventory there? for partnership. a to of and And last like about be of you partnership this couple a this

Long-term partnership.

where the of look a brand took and been provide in license as really years. committing So a I opportunity partnership to We've X.X footwear it Nike at we're outside the businesses And elevated in are last pause. the a out we of enhanced. kids we that long-term customer a to for multi-category multi-brand experience together or our and basically and is our certain

we didn't to quoting the it's our were do, important we it had the of that what customer. We used most disappointed brands not we're customers obviously, lots so over for And carry year. but of past that one

assortments. without the our else is a to this many obviously, going customers. [ It the is other brands. engagement, of be, with uniform important the heft doing real of to to balance We're we excited what the for very our This things apparel in Reebok active So gives ] assortments. balance much we're believe, cannibalizing of catalyst our like about

across wanting So for win our XX it's we win million-plus at for and us. that curation customers to Nike. When us for this is And think a come you multi-categories a look Nike.

took. pause the those with that the So are conversations on we had we that Nike Management

of to in in, So the it October. see come you're going month

it's we that carrying it's get 'XX. in It's women's, as that's to apparel, gear. men's the then out obviously, area It's size more big to -- tall it have it in areas. You online and plus be many, expands It's including key locations many and going weren't the kids through we licensed badge, locations, into

Our that quite in that doors today. have so will the in finish continue line all business and has we strong, been

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

your everybody, talking Macy's, to great -- for everybody, our to with first have quarter August our results. a and you, thank second Just in in again Look forward with interest you summer.

event. you today's for participation. your Ladies concludes This gentlemen, and thank

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