Macy's (M) 11 Dec 242025 Q3 Earnings call transcript

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

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Pamela Quintiliano, VP of Investor Relations. Pamela, you may now begin.

Thank you, operator. thanks us. and everyone, morning, for joining Good With our Mitchell, Chairman the call our Tony Spring, today are and and me CFO. on COO CEO; and Adrian has press Along today's presentation the webcast. live macysinc.com posted section a quarter and our Investors been with XXXX the our with Form SEC third has X-K during of been on and is filed the displayed release, website, being its that historical by Form company consolidated statements The made X-K impacted misstatements revisions that disclosed. the previously to immaterial the includes has were financial otherwise the XXXX. Unless noted, will comparisons be we versus provide or All August references to guidance otherwise our refer call, earnings information prior noted. our expectations, on outlook provided unless to XXst

In subject of unless the to expectations will the that represent license forward-looking forward-looking owned Private addition, statements are today's subject plus throughout plus otherwise statements Reform to for to are with and provisions harbor These discussing sales from prepared Securities discussion sales mentioned our A today. of uncertainties contained differ assumptions providing of financial our results we in Exchange store could results and detailed to Litigation non-GAAP Securities noted. is comparable Act sales all All locations risks remarks the measures. license the of references filings comp cause safe owned factors and plus our materially and actual operations, the and marketplace these be Commission. In uncertainties certain XXXX.

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

good you, morning, Thank and Pam, everyone.

our and quarter. XX previously gains locations, Bluemercury in third plan made profitable encouraged strategy remain comp Macy's expense quarter growth. our reported, our Bold on first levels. Year-to-date, and we achieve by positive maintained trends, asset quarter-to-date track effective controls, in sustainable progress sales third which remain sale above are of our above the to Bloomingdale's New comparable We generated have Chapter all goal long-term As and

into package related third in to investigation expenses want I our one independent small issue to into accounts. of Before quarter financial our delivery the discuss we get performance, the accrual

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financial immaterial this in our our on we've fully concluded cumulative no all impact morning, on cash vendors our impact entries that As results paid. press were had noted release and as an these erroneous position

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weather Macy's Bluemercury line with provided in Macy's locations locations, $X.X weakness were were quarter first in its Net results. Bloomingdale's cold its in channel August. of fourth delivery pull third in third of of billion third and quarter and impact, and XX sales comparable quarter. third from quarter Now which let's digital gains sale quarter from XX turn adjusted to the their quarter-to-date non-go-forward of asset outlook the non-first at have levels. Inclusive a offset sequential benefit Momentum our by the expense forward from improvements sales into registered EPS categories, all of $X.XX

We are third pleased with quarter results. our

X through Our dynamic weather took marketing, We address reprioritizing continued Bold teams newness. At to to an orders pillars. our into to presentations more environment and gain time, in adjusting using refine in-store initiatives responded our Chapter a We're great the across same strategy. go-forward quarters strategy, warm and and initiatives. to the and hurricane X data traction did extended best continue job. test, steps the New season. to They we and the our execute provide thoughtfully iterate proactive to invest serve conditions active all customers categories,

balance healthy deploy without us aspirations long-term our financial ample compromising Our that supports sheet liquidity allow and to capital health. our

to Turning pillar our first strengthening Macy's strategy, the nameplate. of

positive from fourth more also comp, customer to Having growth, third been led our consecutive a compared allows XXX salespeople Promoter stock available shoes sales basis of other Macy's positive which XXX with First get locations their Compared and those used a handbags dedicated in on not to quarter XXX about women's earnings by dedicated points, response consecutive locations. test have points inform of from for comp runners Macy's plans X.X% nameplate, the store limited staffing our of roughly active to the basis go-forward relative the and detail in learnings XXXX, customer. locations women's outperformed visual to respectively, we being continue to year-over-year. This year, experience. to shoes illustrates staffing, in Scores time those Across steps merchandising, not in These eventing, outperformance to initiatives staffing, First call. Improvements assistance XX along in These point sales improve and the and locations. XX the our importance quarter handbag expanding reflect discussed spend XXX be the and representing to results XXX high-touch and point shoes delivered to room of the take XX assist with representing last the been investments will total improvement Net receive testing customer additional locations our to and more in XX to colleagues to go-forward at basis XXX are customer quarter additional nameplate. categories. that did third first and Macy's handbags presentation non-first which improvement. We've to

by Sassoon, [indiscernible], name are to Co. traction. merchandise Madden, ones in expanded providing We've a We in label brands Dolce tools relevant Vita, and helpful leveraging in-person in our our and value and to as is exposure including offering & our coaching. be private and gaining to compelling revitalization less colleagues digital And to, training more that customers such Karan, Charter Steve responding Style just Club brands, few. We're are fashion Donna women's reduced

representing year, the still Beyond a to better third closures nonactive and sales, the cadence, women's Scores and points roughly although in be of Net nameplate typical our pace Customers product score up by close deals. our holiday. on men's in now we're with store quarter. occur of will the Macy's, continued locations total handbags and roughly encouraged XXX expect discussion and while year-over-year this standout economics apparel, have XX post ever. Rounding with We non-go-forward line sequentially out our highest apparel, home fragrances the experience Promoter weak, improved to notice taken basis

a The is points Coach, positive each luxury Rebag, as key recent and show Customers to of which responded Customers to of are Jenni Bluemercury sales Both handbags well second begun as of Comp price third of with of product, improvements contemporary at brand confident comps. continued softness their by sales our Chapter which to to and strength Longchamp ability in pillar advanced our Burch, and women's these accelerating respond strategy quarter signs positioning in beauty New brands, growth. well continue digital. certain we home standout accessories remain including in offset Bold well have Bloomingdale's by our is were the grow Bloomingdale's, areas to Kayne to private SKIMS our market be launch. These store. the and breadth driven posted rose apparel, new in Tory associated and luxury aspirational price luxury partially preowned X.X%, to and nameplates. At differentiators. and improvement points,

quarter, assortment to from new -- tangible through Italy renowned third was from [indiscernible] and a store This our its informed unique New XXX-plus it local by the its brands driver with achieved a impressions. culture it Italy X is positive and location serves. We located and best with Shrewsbury, how Campaign, Jersey. exclusive products remains gain. a traffic the connects had which in extensive empowering through product of Love that's media received. billion been be comps, women's-only and and Love Bloomingdale's leader XX partners of the markets its and with the garnered of and bought X.X% XXX From close example Bluemercury strong in Bloomingdale's opened of brand well During roughly quarter research. experiences, amplifier. have a market to first Italy Bloomie's curated customer It store fourth recently offers XXth posting customers our was It's consecutive highly

a and Augustinus XXth new anniversary quarter, limited celebration with improved website. and to Beauty. educational anniversary such from unveiling introduced an that also blog introduced to expanded Sisley aesthetic also September the the its not Bluemercury's and Paris, new more Beckham off SkinMedica, Victoria modern celebration, our of kicked we aesthetic remodeled The elevated as Bader popular quarter offers We've website During lines navigation and logo. Bluemercury's benefited in which is XXth stores.

X X year. this locations stores for and the Bluemercury X During new total opened quarter, X of and remodels remodeled a

to X quarter. in to New We total additional open remodel more continue and X fleet. remodeled fourth an the locations stores can the plan outperform and

operations. pillar, modernizing to simplifying and Moving final end-to-end our

focused more improved In year-to-date teams pleased and chain, our third quarter, compared are and phase technology platforms each speed effective to the prior efficient legacy creating We the delivery improve deliver by search of remain network. work and the XXX period. the improve supply with customer doing Through our out organization, on roughly points basis experience. have our across we to fulfillment a and are

investments, fulfillment of and we're lower realizing rates seeing product in-stock improved of flow packages. result a costs, availability, Promoter cash Net and As generation optimized for our Scores multiyear fulfillment

and sales Before and trends I we're commentary, the quarter-to-date quarter to approaching how customers a course, more remain are trends nameplates. I We're wanted our them release on over frontline product, and experiences, above value third press comparable turn marketing, our remainder our to the share our compelling reason year. and shop giving with levels. of colleagues Consistent quarter-to-date Adrian, it to believe of to listening

] about call culminated with followers, merchandise Macy's excitement Heading into status. participants emphasizing and in XX and iconic Thanksgiving, Thanksgiving events. to from Bloomingdale's and specials of excitement and builds with are XXX developed and includes had to teams Universal Day gift Marly, offerings products, campaign collection over human deals new record. million Parfums is holiday with points beauty which our and creators parade content holiday Good at de we've leveraging exclusive self-care XXX Estate. parade gift-giving windows the digital which guide Actress Creed, life have year, skin annual our Pictures unique perfume We're marketing to we with Wicked this XX million destination brought high-profile brand XXth event limited campaign our team Manicurist and sets Aqua our gift not supported products, inspired in XX-hour who Bluemercury, them touch new Macy's that our Our with strategies with viewers, date. Alison multiple our Flamingo Brie, the by Wicked. and in is biggest and conjunction exciting including gift of Macy's. Parade by a [ The of And Holiday a and The we're the holiday And giftluencers. And in campaign collaboration stars social its form

are As of and compelling to share end-to-end all well relevant and curated the value through remainder operations. assortments, year across nameplates we messaging, the enhanced capture supported mind promotions, we look beyond, service, to customer improved positioned by

over turn to me it let that, Adrian. With

everyone. morning, you, good and Thank Tony,

execution customer reception to teams Our our team's Bold reflects navigating productivity of dynamic efforts in in our Chapter our environment, work a as the experience continued efforts. and of investments operational quarter to and New positive focus on holiday strategy. the benefits deliver third continue ongoing agility These performance and our

financial Before discussing to I'll revisions first the on detail the statements. quarter, our provide

entries investigation independent our erroneous financial impact actions had cumulative fourth the from quarter the immaterial the year place. quarter of from on our million. through XXXX concluded the took over have fiscal period erroneous results The the that totaled We ended X a November $XXX an combined entries this of

was delivery quarter There approximately recognized $X.XX period, The impact in no expense matter the to to expenses. vendors company as prior flat. as immaterial. cash financial reissuing no elevated were paid. impact delivery not volumes. quarter impacts to During inventories was statements billion holiday not there was or deemed revenues the were require the of impact This fourth tended This all did same largest and occur to fully due the

financial historical revised release and X-K reference. provided have in information morning's We this for your press

For U.S. of revised quarter quarter third Generally full Management were call, other as ensure results. and our as and performed prepared purposes today's our reflect comparisons Accounting Principles. accordance in outlook fourth Accepted year-over-year financial additional that our consolidated well with the statements year procedures to analysis

comps sales, by diving reported Bluemercury declined enterprise billion, includes Macy's roughly and product and year, Inc to comps, and locations comps X.X%. Total colder X.X% down on in were down for of were forward X.X% locations nameplate, $X.X results. associated from were sales. Macy's nameplate rose weather Go-forward and go-forward driven point Macy's fall mild mix. negative XX. sales AUR X include Macy's which primarily Now product were and on digital comp quarter Macy's the November Owned were Total XXX business which go unseasonably all into business impact down net accounted third net approximately digital, locations we what Bloomingdale's X.X%. digital which and temperatures go-forward X.X%. that includes Macy's Inc. estimate transitional comps, down plus category We last X.X%. By unchanged X.X%, sell-throughs down

net our comp up X.X%. Other and achieve posted Media were net share card X.X% were strong growth a supported X.X% positive and losses a Macy's go-forward third million. declined and rose sales campaign be than we view which comp. had while million Bloomingdale's net X.X% credit $XXX Macy's by were expectations, advertiser and to higher line. was Both revenues XX, the Bluemercury Bloomingdale's revenues Network better indicator were ability sales sales rose leading of counts. First comps Bluemercury while quarter. comps as of Profit to were up X.X%. $XX $XXX million in Net and continued revenues X.X%, credit

points, Before basis up that to rate the year XX.X%, a shipped both by were in prior expectations slightly transitional quarter we merchandise cost adjusted and to to took quarters basis penetration fall conditions XX volume. End product of are comparable network reminder relative seasonal weather our at reflected lower customer. conversion proactive that, due warmer higher rate points delivery and and year-over-year, and total our periods margin quality sales expectations, on the Relative XX respectively. Gross season. SG&A were company's have quantity margin partially year-over-year. which year. We due shift and of remainder was for conversion cost fiscal our due billion half reflected points of expense appropriate ending of holiday believe or year, QX discussing basis of was of to merchandise on made accounting. for accounting. declined a and X.X% basis points. Within sequential cost the the approximately inventories XX.X% neither the last our XX progress And revenue. $X.X beginning to the to directly an dollars mix. expense and and and of gross decline clearance been discounting prior sell-throughs fulfillment for this margin of for had inventories in more half offset XX to year-over-year amount was to newness this gross response This inventory, rate value-conscious efficiencies margin this to current Relative accounting down to The to year, was the product less than by

These total last customer-facing increase compared $XX strategic led increase take to a basis controls point million XXX the investments cost SG&A lower continue in to while rate. investments. approach disciplined to the year contributed to while We making to in revenue

estate. real to Turning

reflect this delivered During remains the expectation quarter The we fourth of the earnings, of this our at $XXX delivery asset of about deal-making third dividends. was the used contributed of million flow of activities driven higher EPS. pull Results an concluded $X.XX expenditures our gains, close sale gains, investigation, which select from million. Capital largely third into This offset year. Concluding locations on the adjusted environment as related Free expense totaled asset $XXX by quarter. earnings. quarter, million mentioned, sale now up we lower in deals operating and XX was cash which outflow beginning recent by of $XX $XX year-to-date to $X.XX. we the year, was recognized Tony $XXX EPS XX of the prior and have primarily paid conversation expect cash million, And by roughly adjustment impacted reflecting XX the we EPS forward from a quarter to year's $X.XX. On negatively basis, favorable. million cash approximately by

million completed $XXX which board to our evaluating tender aligns liabilities shareholders. along invest our ensure own with offer from a it consumer-facing enterprise the remove to healthy the also to We flexibility capital our We further fund in in are keeping while are returning with initiatives. growth priorities, a and investing and capital initiatives deployment growth sheet, balance profitable maintaining our constantly to

fourth discussing a quarter outlooks, reminders. full and our year few Before

by expense delivery incorporate and year small outlooks fourth historical the as for for fiscal expense been the erroneous quarter First, expense entries. updated package and the not expectations had the accounting individual delivery forecasted revised properly responsible the delivery

the that was XX-week in of a XXXX XXXX consumer spend. $XXX net we assume fourth and And contributed sales. fiscal they current to a the quarter period. is Second, discretionary XX-week XXXX week third, choiceful fourth their remain quarter will on million XXrd persists pressure The in while period

a X.X%. $X.X X% are be down to expected billion approximately be up basis, expected are approximately sales net billion. quarter, to On sales to to fourth net the XX-week For $X

there sequentially sales large ahead. trends volume several improved comparable quarter, are from third Although the weeks have still quarter-to-date

anticipated to We margin do in not $XXX approximately of be card recent issued credit accounting of year's holiday an this to revenues goods of relative due pleased incorporates of to limit gross the to full we inventory year. quarter digits. to would inventories environment also trends, basis a year. The for for shortened prior point will which that beginning previously season. Other Gross seasonal fiscal decline are XXXX. to down not outlook $XXX sales, approximately for to basis XX cost product given to year-over-year, especially at rate as to be enter is cost delivery relative accounting adjusted adjustment expectation taking margin guidance. basis, with shift the believe the our heightened actions roughly Adjusting including to to lost to there roughly roughly included On and million of million, accounting, million. commitment expense majority the was to $XXX a but this $XXX recapture End projected our rate XX.X% on weather be the shift promotional cold liabilities, reported are be particularly gross margin a range revenues fiscal a XX.X% the our includes low be in flat inventories single projected million view last

We are improve to team done has the ratio. sales-to-stock the work proud of our

be pull-forward million Asset into roughly are expected from asset of monetizations fiscal sale reflecting XXXX. fourth primarily the gains quarter certain the to $XX

the our billion. into Finally, adjustment outlook, expense. we billion sales $X.XX and full XXXX. EPS results of Net account for approximately quarter we expect for adjusted an to the expect fourth quarter $XX.X following diluted Taking year including delivery now approximately $X.XX, to $XX.X of third $X.XX

$XXX expected up revenue in to sequential be from For to nameplates Inc., down flat, locations of third our representing comps be we flat, levels. nameplate assume the roughly a to quarter with inclusive to down and be go-forward a outlook full of approximate XX.X%, full $XXX year to $XXX as last X.X%. Other are of adjustment total up luxury and Gross to Macy's, X% prior XX.X%, non-go-forward percent XX now which expense. The net a Macy's credit relatively of card roughly improvement an sales are million, the million digital of revenues adjusted $XXX year's revenue rate. X% XX.X% locations outlook includes collectively XX.X%. to to to XX.X% X% to expected digital delivery as of including year, of million. percent gross this margin for is point adjusted adjusted margin to in basis SG&A XX.X% line compares to of million an

of million which of gains proceeds and approximately look which an to on $XXX desire for outlook finding delivery additional outlook $XXX and of sale X% monetization $XXX XXXX, EPS related we consumers' prior and of line adjustments, adjustment learnings, our we approximately $XXX year our compares out million respectively. Adjusted conclude, expense. expense. Capital of an of for capital adjustment basis compared to compares are an outlook which $X.XX, balancing to $X.XX spend pursuit of consecutive adjusted top with of million to opportunity. of as represents prior XX This growth. X.X%, X.X%, profitable adjusted to million to reflects close capital delivery Annual million of million, percent allocation. To value revenue making $X.XX to approximately which areas our the building as total taking year. outlook last EBITDA of sale $XXX asset this commitment to to to We're Asset of $XXX thoughtfully includes X.X% the and of reduced roughly our successes to expenditures prior this second and approximately $X.XX adjusted year $X.XX, point efficient compares diluted a includes fiscal

Tony. fourth our across near healthy sales comparable team remain term and our longer-term and that, balance quarter-to-date our navigating results the by recent by pass goals, I'd supported and encouraged are focused sheet. With like and experienced We it back executing nameplates, on strong to trends to while

in and X New Promoter strategy also now consecutive in comps in third our quarter Bold of X consecutive our Bluemercury positive and We positive third X-year leading the and the Scores and of improved quarters Bloomingdale's to Adrian. locations Chapter quarter. have quarters Net growth comping books you, of Thank First Macy's sales XX

growth, benefits for yielding well by operations, savings enterprise-wide as well inventory positioned are management. are cost which as nameplates supported and customer-facing improving our of All end-to-end

work still even we XX of Although have initiatives, roughly year us profitable becoming we non-go-forward end Macy's, state to closure the our this New including of believe a do, our closer more to gets Bold Inc. Chapter go-forward locations

we outlook. that, With Tony. year our and you, fiscal ready on quarter for Thank are operator, and quarter third results questions fourth

Our Matthew [Operator is first today JPMorgan. coming from of Boss question Instructions]

specifically So XXXX? And high initiatives gross accelerate Tony, could positive guidance target build just comp year? elaborate What first back positive of we you that X sustainable to on years, comp you on drivers sustainable? do or the do the with long-term into of And of fourth any comp the in what for then half drivers margin or need improvement the would Adrian, pointing the sustainable to growth, consider? quarter XXs your areas see giveback in as as you see

our Thanks, potential program that look Yes, indicator the across a in question. the in dresses, continued forward best tailored of for First the are First X.X% top the we're quarter I call. But the the we're feel more XX fourth about about categories, progress at leading talk seeing Matt. seeing about fragrances, we're to XXXX, the We clothing whether number appreciate line. earnings or expanding talking mattresses. XX strength on Macy's, of quarter strongly and on we'll brand. growth progress we of the at locations the Macy's Obviously,

that year. and fiscal So continuing to categories. those think go at are the it's at broad Bloomingdale's next strength on Obviously, Bluemercury. the see of an almost we all array has their we're And sustainable across growth. The I job done success team into outstanding reinvent and for think as further a building brand I complete. Bloomingdale's recent is expansion and brand positioning private And

headwind but as next forward. that becomes We have do of store we go instead to tailwind home being the a a year,

So have it us from set brand issues positioned, assortment, looking at quarter, improvement for of we as price the assortment, think category go this are if impacted matrix, we merchandise think, I aside a we forward. that some strategy, could I

you for your thank question. Matt,

the XX business. we As seeing that really in ahead, of the we're and in Bold handbags. line Tony our us. like. And the We're the remain luxury believe for remain Chapter stores what fundamentals to F on seeing will XXX the committed the it pilot encouraged top with we're encouraged you the out, that We're enthusiastic. women's think as path New we laser-focused segment. by that deliver pointed momentum stores. seeing it it very We results for We're We're the in really We're about seeing. looks just

what of would discretionary gross we're here to we're this margin achieve we encouragement that's a lean gross we over side, the can But holiday I continue combination is but On competitive into a our year-over-year gives season, improvements navigating to say growth in through continue in profitable that do factors. expect to margin what seeing environment, time. us that sales

expected. variables, clearance. in We're what responded of the one later what and our biggest is about how the of a later a the manage we our warmer just higher-margin have in it lot in think our is dealing challenges sales we you of really customer If to we're environment, we weather had unseasonably with customer that But value-oriented. We offers, penetration it bit seeing see the a has higher Matt. this of do see that's number had to sequentially we into coming weather online a the than with cold year categories, very

have We inventory to control. their manage

great have terms of around et products, customer cetera. cetera, et the manage is is looking We for to experience, what which value, in

We have to execute well.

well we're leave the opening would scores delivery, we history. NPS of as quality encouraged And you the And the for thing of growth. fundamentals about remarks, that invest faster in execution. with In profitable Bloomingdale's in-stocks, in is our continue business the highest Macy's better really by sales so I driving and and talked to we

this and the results of out coming as look progress seeing we're so we're And very by and year encouraged we ahead. transition investment

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

additional bit select and transferable you XXXX? into expect you quarter calendar to confidence SG&A made you the changes for and for pressure in the Adrian, and we we to seeing as recapture accretive on these be and investments? the fleet? locations the are to shoe handbag promotional into gross promotional updated in invest XXXX to profitability experience that your XX you in Tony, little broader do just then initiatives, XX outlook these test your be gives as of have you thinking what fourth could margins given for what that First And environment? What move And customer a you're about a staffing versus opportunity to elaborate should how more And ago? the days swath

for question. Thanks the

stores. frankly, made customer handbag shoe responding our confidence that I gives changes sales quarters those second in the store locations. and XXX to and we're growth XX XXX, us that doors, in consecutive XXX pilot additional in acceleration growth XX of from locations First in First and in is test the think those of that comp the investments of making improvement points the basis we've the X comp that XXX That's other the quarter.

Score over Scores So on a Promoter Promoter basis that I for we've highest quarter, points up brand. being Macy's third Net Net XXX consecutive think the at seen the record

shopping the that we right necessary the we experience changes making are indicators me all brand in changes and had to in the to that changes make underserve strong the Macy's So create we're store a those better that experience. the are to customer our

that's of On affordability the our investment, question responsibility. of

to provide but shop are We the have the can make going the to this to to to the of and be we our that a Macy's. Macy's us, set out invest year overall accretive adjustments that which is sure choices, with XX to a stores reason to other change our in They have to make experience. We pick profitability in be customer the we it. ways compelling This, company, priority. do We business. will through we to at

and that expansion XX next fourth communicated strategy expand will on our We First year, quarter be call. will

gross me the speak are that There start by the executing to well. saying factors a let here briefly outlook. margin I'd are navigating. of that Brooke, teams different we're number

comparable basis quarter reflected it gross the we've release that the roughly expense the margin, and in the press XX delivery Form the for quick this just As relates adjustment reminder numbers morning to the point a and X-K. year-over-year includes fourth adjusted

discretionary But merchandise and and adjusting consumer competitive value we're market. about for making under so The number updating doing season, are a quality sure of outlook the within navigating we're the our share on order feel the overall, We we're quality things. content we're for our promotional where we marketplace. consumer focused spending. newness with Now that to We're navigating navigating operation, to navigating we And the and to the talked as promotions relative marketing across in offering across as dealing quite competitive that we a that the calendar what pressure. and landscape win variety are with. profitably see that outlook, happening about the all remains in choiceful of our a is of across our the remains possible regards our across our environment. we just that's of nameplates, of and holiday good execution of weather, markets the We're the But channels. we're real

relative throughout to course we'll the of the be very improvement season. inventory balancing we of to in quarter, the management, we're quarter-to-date sales the of but continue balance So sell-throughs the profitability, navigate as quality prior very We're with the sequential thoughtful. pleased

of is Helgans next Ashley coming question from Jefferies. The

Blake on for It's Ashley.

for So Wondering I First on XX on stores the are conversion and stores. before. have wanted traditional then touch on new that First on traffic not you might XX, that to topic First you Macy's just second then that question XX AUR versus the seen seeing show could the up How to compare customers the those? customer does shopper? you to ask And if

the of the part metrics it anything he'd as that it, Thanks, performance the Blake. I'll XX and We're to can we measure. in add like. take relates consistent first First seeing Adrian

certainly increase spend we're our visits, those and and stores, whether been new through So some The looking seeing who is of performance average see of our with the driver come beginning digital customers. The of AUR, new are biggest average reality all today IPT, of conversion. be their customers value, order obviously it channel. more familiar numbers customers, value that has AUR equation, growth. at we're We're elements and growth order more to customers

in stores million. So less an the have location a work, again, types that by to to than stores, into way, $XX those we them the it's of our opportunity geography because are from consumer. bring is make live omni customers, a The them

stores that over have We million. $XXX are

of to learnings types transition year and entire this and across the volume investment expansion So different that the we're shoe our the to increase of went again test, lots to in different as learning for Adrian? we lot XXXX. did exist with of expansion stores country, stores handbag XXXX in we of a us of up set XX First stores And levels. in

Tony well. think, quite covered it I Blake,

ahead really the year-to-date, growth which this we've X than can year us these be women's of can. XXX key for improved FXX around you not handbags, a To basis point, you here. our XXX-store change. opening Macy's at shoes, growth places changes what can wanted some stores categories where ready-to-wear, dealt to it's stores they consecutive difference that's Tony's improved think in we've points, the a make around they significant When sequentially NPS, even they points capital-light have business, that XXXX and these simple a capital-light throughout the year-over-year about that in putting to with the And made our you think replicated is, about proof these comments stores. of all pretty was categories, and think about quite few of test the the quarters is earlier touched important scale. I acceleration. When for demonstrate volatility did those into more answer see the of yes, for like we because that When more things Just investments but you important think we've and it's

we'll good learned. online We've see but feel a we've what encouraged. progress, opportunities learned We work feel about additional not but very We is that in done. we ton. the So about our bring we're good quite XXXX,

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

Nice been X the difference? at Bloomingdale's, years in you this closure XXX change And to? you the what Bluemercury up from to the think total What's progressing. rate all When XX see were on talking the about how taken XX. progress does has you're to that next store the and over the

is on it and XXX I forward? quarter, you're basis those the XX you how up down last Second was margin, about it think How are do stores. it And and unpack going thinking the delivery expense, doing? thing format smaller how points, merch

to Let a it locations of at as turn me take part strategy, We to your to Dana. that Adrian less soon wanted as good the we possible. profitable the and had and were for question, first, I'm we productive, monetize over start and less going then them of the said closure

are have. Adrian, core to about update XXXX. the smallest of is sustainable XXX. that stores have enterprise. we're less transacting. open locations. to talk with this format provide formats. location Macy's its very get We'll more continued that the want Jersey that profitable fact little we to that growth we're as response that fleet a fourth in the we New And to We're remains provide We've we an XX First for we do on year fact go. opened pleased and the to that reflection like and So And into market, we Shrewsbury, learning bit that a our as But the initial a margin? assets XX, small up Bloomingdale's you is small this to in the get think closing even value stable approximately number can

absolutely. Yes,

just add one with thing closures. to me Let regards the

Tony's With we relative amplify deal the get with, really and good point. closures we we're to started just the to are seeing approximately go-forward the regards of XX to to year enterprise. to eager XX Just the making,

$XXX being above That's deals So in shareholders. or proceeds, to terms that opportunity. That favorable said of these opportunities, certainly coming expectations, into value. The this return And we that thing planned what we're we we great able to when for the forward a forecasted we're do taking in managing highlighted year. monetization, unlocking of which have are the the year. us to have earlier, advantage at in that Xx as go and with that million almost we enterprise capital terms our is of history long about approximately invest gives capital sales our to

fundamentals, profitable competitive execution we little the the bit Tony, in merchandise have how impact. That's quality ahead. we terms profile we on as to product about as expense Now the a what operating see that delivery line and some do in of environment given margin. do the in team very an focused managing in and managing that we're a financials we're on see sight it side. are the to achieving on in delivery myself, the earlier. the much provided, That's we focus our of from that you our the mind, relates weather mix, the keep deterioration standpoint, adjusted we expense the look the is of goal And of to about margin, on growth improvement profitability, But spoke

and the of by have made company. margin beat was the a because And Dana, these excited we that more the conversion from so accounting, conversions quarter the to gross We that changes view into benefited better XXXX and conversion cost the couldn't miss the of you quarter accounting. I would just conversion natural third to the cost to impacted you be the second behind the have get comparability add reference cost to us accounting of was so margin

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

of terms we the call, throughout end of assumed intersect the related about basis? well does higher the on relative Happy in comments then lower? the your at brand margin as holidays. guidance customer promotions value to as a range private merchandise and with And to and how that comp your development What's think your longer-term the

last at we performance in last quarter So with And good a shows top end Oliver, year. it's quarter guidance reflect growth. year-over-year morning. on range you look the as great this our fourth Look, you year, of the the to be on

on So encouraged year-over-year, quite growth we're high having the end, by.

on low of the it's about basis. about talking this year-over-year, XX-week comparable range, end the decline On a we're and X%

And so we're quite encouraged.

seen we've we I through think is in progress this most as year performance. that investment the thing improvement important sequential

than opening spoke our quarter. remarks, are in trends the better saw about in third Tony quarter-to-date what we the As

how by all business. is so together And really we're encouraged this within the coming

that performance. Yes, Hanukkah the a for And Thanksgiving desire that's would fact of have the response quarter having the we're choice XXXX invest in year, that another brands and fit they Cashmere for value X program in analog strong able looking our the and consumer to part because the private third Style between the of private add, growth cautiously to within improve able our see quarter-to-date the a is had the they're that with opportunities even this we in our optimistic pyramid. we're and that that you the days and strength absolutely the to a seeing being very respond parts Yes. inconsistency as versus where I trends of business to to Charter Oliver, Christmas fewer within using to and year on equation year reinforcement revenue the to why brand our see Club where have is men's the to We're with value weather. & be Co. And continuing able We're see be it. in with more and of to

XX% by our So And market brands. it's of area. is area business

assortment both a for or important price of we right that more get important breadth So it's breadth of equally too obviously that and a availability.

value the customer So brands. their finds across our of suite of definition

be which versus that progress aspects to of Okay. easier longer. XX, faster implement bit really aspects XX a take nice and little First will And First will with made you

it's you an the that community I the I down, XX strategy. we to asset-light into First Oliver, want things that think break the did if differently, just remind

The So put strategy. expense a focus was capital into on not did merchandising we stores. and these operating of lot really

visual density dedicated a vendor is ability execute we brands to replicate that are the team compelling community. The to relevant the So set once very The visual certainly, to on floor have that based have in the is easier replicate. easy fleet we of to the have to less go-forward is stores. enhancements common a easy on

will for $XX million the that be are XX rate if we're obviously that opportunity wave more different also largest think of of Interestingly, staffing fleet. our based on incremental we or box First one improvement have the which staffing our talking versus in is million will have box, what additional lower-volume as because stores confidence is learning we next gives much for the the us variable strategy about sale. some a Macy's having we're $XXX the a will a of I in that increases,

from Michael Evercore coming next Binetti of The question ISI. is

get I multitude report in themselves, same-store third to of guidance a just see biggest for to X%. doors, to the the up XXXX, the XX forward-looking one lines about the in as indicator we'll To quarter then, speak different as of you've quarter. go times. about about then which you up those equal, the X% When of else quarter, of which the those think for X.X% forward? and you digits Tony, closing we beyond we comps to spoken gap high non-First the to, single the decline the to First sales about get margin guess, the to low time the as to we couple in the So And fourth of unprofitable a what guidance All today, gave the me. comps do comments think think XX are the between pointed next XX, change First the presentation, when positive higher close about line consistently the think you the today, the us relative you other for some consider end And First the XX fourth leading you using the in margins XX end in few go like X-wall year? assuming when do lower

Mike, I and with Tony, questions. for And start? morning, to this encourage you you your be I miss. don't thanks to anything may great why it's that add I So

stores improvement in in investments seeing sequential improvement luxury, and improvement both improvement the have sales quarter-to-date, sequential received Let we're digital, We're seeing we've We're we guide. of about we're many in the When me in that first improvement seeing other Bluemercury. We're improvement seeing of seeing terms end, all, our business. not talk go-forward improvement what sequential think seeing Macy's yet. stores. sequential sequential seen high nameplate, sequential Bloomingdale's in we're sequential the of seeing dimensions in across about in We're the FXX.

part and harvest. seeing approach distorted we investments to investments a want in a So the we lot as boats of Chapter. of like digital, -- things begin is rise are First way that all we those and XX this that We've definitely to Bold now New

you high and we by we're really think things And what we're of work about when that sum more these is as end than know, seeing So the the of momentum together range, sequential the encouraged the create parts. the with building. improvement the

we're how investments. a quite what When FXX quickly actually mentioned, about encouraged at XX do level think And able to are very changes the the encouraged to by we would show stores. replicable, how the year. do these into we're scale we're of of XXX Tony wanted next as these all quickly replicate We we that. about go-forward we and So think to a to impact stores, by portion First up, our business this understand as how from capital-light

have think sheet. as deal we we're as healthy our as We going want to a making, to about we Now make to rightsizing that balance network. supply chain the underperforming XXXX, continue manage appropriate stores well sure monetizing we're

But what see about quarter looks opportunities further on fourth we that So like our earnings for monetization. share more we'll call.

the thoughtful about As the investment, we we That's We to talked But we're we line. ahead. we That's as road progress. how wallet that the relative about fundamentals. the line. about recognize on when profile. we're we're a But entered we we have margin talked That's discretionary to as still environment, that be we navigating competing our competition about earlier, have year, bottom of talked we talked experimentation. for learning, about about and in the look, encouraged. But the think we share focused top

we've ton. a to was the us As opportunities done. than points more There's We've we're to are months XX now we the or going but lot it proof clearer gotten year, ago. a much X exit into, learned lean

the performing of fourth that Mike, the the quarter. best goes add in up that only categories are I'd penetration,

fourth of of the some guidance related the in those So to also businesses. the quarter is penetration

impact forecast improvement, related as And margin the on that also penetration. the is to well. some Some is has an

The Bob Drbul Guggenheim. next question is coming of from

for questions Two me.

new you is it bit Are a The brands? you labor getting shoe first inventory in levels. some of more have and can on in initiative those a Is the you just locations, support? just you need? question just brands of the terms then you Can talk -- one, expand second trends? do the handbag the And and

flattish -- you make book? the said made needs going said you as sort year How out -- and some forward. to end adjustments? going you be there books are order adjustments Just far think about 'XX, to adjustments think making might the on you're you where I of your order And you to

about couple people. the shoe changes are can of and take me between Let miss. add questions then and Adrian the anything I in XXX handbags The the stores predominantly

certainly making changes we're So assortments. to

are the those the shoes for make get somebody We that seeing the by the duplication try easier to to stores easily consumer. bag having handbags the floor the and But we're to by impact share is are that to to shopping the to lion's within reducing the get of accessible from and unlock run customer. not

are do can that we given impact inclusive I that's think to in some assortment those able there of us stores. we as actually menu so the the optimism that more And more is cautious of

slightly relates are adjustments at down to books to for already to levels, basis. on a restated flat As it we the significant XXXX order making inventory forecast of without our

have be issue that want performance stores. think get shoots more private other to the performance So into we're to, the seeing seeing go-forward our don't brands brand expand think and in our that this we're reinvention, green XX, continue we we some expand that we've added get as the opportunity we greater kind will to revenue I inventory said, so I going between continue XXXX, past First of of the see locations the year on consistency in the to

coming of The next question Lejuez Paul is from Citi.

the a do see comp promotions thinking comp see period? that sales a of higher the the you And e-com year? stores. you because look then in running out promotions as the to just transfer? attribute second, if do is your by Or the XX sales you Is some markets if in so, Curious driver higher how about year, much you drag you to end next where the business of typically quarter-to-date been And closed that higher have in what closings year-over-year?

year. I'll first I'll thanks part, Paul, Adrian the Quarter-to-date, the promotions the last the approximately question. are last let take comparable to take for part.

the And necessary get So impact discount about same inventory. difference it is factor mix was. that The is may is be the liquidations year-over-year margin you an the our then to into interesting aged that business. as of rate the when on

promotional small the in cold as good the able stores a about come this, seeing more weather selling. store room we and the know, and of the the add There sell-through we're come a like that the we're an only reasons environment promotional it's impact on give inventory, people of of one to brands with. and you is business kind again, not be So isn't a aged environment as when the We gifts, a have operating product, that feel to given proportion much selling overall help Macy's again, weather of colder stronger of the lot in. and like a they even we quarter, within so think to And Macy's. discount us hopefully, calendar in mix start to pretty lot that I why latter value. regular actually rate, But will part of see is price margin the get we're performance. But of department

the guidance ourselves in think XXXX. position we and I quarter be to for able so have our And to for improvement opportunity deliver

a in closures Paul, that let about keep closures. to with are underperforming talk the these the stores. is thing mind me bit The

are difficult And are to not away customers incredibly shop. just the centers are these so stores from And these economics These places that run. those shifted where are as places to have where favorable. are

sales omni that business, the just of the digital I'll far, actually we it, presence So however actually you premise. Very the physical fundamental capita, economics economics because we few sales markets. that sales customer, single-store at best presence best and best the per see in way that's have And per the we by when continue is stores are with start and there. see to an we reason important a in per a customer, have look

try the in limited. to on we're within to to importantly, other most think have But be other vast, that Macy's XX any different look closures the market, is that going the Given in the that vast, understand buildings, that comp impact buildings years closures really of majority vast markets market. we we taking that. customer a back to And retaining at approach are

a been strategy we've So on omni as the retain cetera, we already customer, cetera. a very many store-only stores et whether working of to specific that a developing digital-only to with an communication, them customers customer, by it's et other customer, have introducing unique

recognize going so important able We omnichannel platform, encouraged. we're get focus to and healthy to be that that's a to because So to healthy growth that it's platform going what's fleet, drive forward. profitable our is

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

point Maybe in curious you of that's you just Can change But then third you're just next year? why quarter on think first you how this that big guidance the elaborate any about giving the just top maybe And was formal relative for Adrian. beyond? to what's into as for pressure for from stores should different Tony, strategically digital mind for a picture, and quarter year. fourth XXXX, understanding perhaps not and

for we're that your we've do how very experience the digital. Look, as Alex, What omni digital by years. initiatives we that that's introduced, in the the and really we contributed a come organization, number by for challenged are our experience were been we fundamentally new of really question. the And thanks number layout, scores focused had better. new are better, talent material stability, on better encouraged late time into whether frame variety a and look business Traffic CSAT of We August improve SEO digital in October, is better. customer-facing a of into are is category metrics. We're better. particularly speed. at greater of things it's seeing scores experience better. summer, operating kind NPS upload greater is pages, better. Conversion are enhancements,

in spoken and from rebuilding experience perspective, From as to we about in-stock our simple a that invest operationally the improvement on lot the our seeing as on this because making, all year, the in that and digital the customers. spending. Tony simple dimensions really the ago X.X so shopping year, something customer and quality speed results research this different we've myself is years we delivery. of as navigated we've sequential team gives as changes conversations, actually strategy, we're a needed us search the And side we're is traction is in really those something customer-facing a and And underperformed and improved getting both on that better of encouragement earlier the noticing for and

as add, And and together I'd that with Alex, I've Yes. the digital is in marketing the my think seen organization. strong time X pyramids merchant also company. as work our includes only organization it I our across the

behind we delivery reinvention home, year we're behind that through, what and We're about good year testing, So what. But accounting expense a us. think specifics in a without good guidance scaling. not how The brand is XXXX, particular without our in I a just us, again, think of us. getting I that's into this that feel went of cost about conversion, many private of of way. in it the that's into that's segue The also behind

call. excited Bloomingdale's experience have locations, site have on see opportunity as opportunity experience are we You more expand have We about more we'll to begin talk more XX see about just continuing about brands be the we're both they visit as have Both contributing new about more price, to product also fourth the First than results many the Bluemercury. we'll growth. begin and the people to changed corporate have for how and know to to for significant And the quarter opportunity and growth.

this I could we've allocation of been add investments. Alex. into really thing, a capital standpoint, pivoting additional one harvesting If notion just From our

really lot a point, beginning these to fruit. are to investments now so And yield of Tony's

million. So we're improve of This invested $XXX year, capital year, we kind of invest business. Last look to if you invested XXXX, billion the about at we history, of million. this in back the $X.X projected to fundamentals really $XXX

strategy we So our clearly we that talked investment. allocation very when business capital needed implement this

investments. was the Some of this been investment past capital-light it year, And investment. has CapEx

we as about harvesting excites scaling on us Tony XXXX. focusing described, is coming year, this as what So next think together really all as and is

is question coming UBS. Sole next of The Jay from

talk could furniture of drag is little Maybe, handbags. more bit bit same And color a you on a then comps. Tony, little just at that on maybe overall a the the business about how and much time,

peak you're little you post a you what update trends business do seeing the Cyber in get you then improvement lastly, develop once on give mentioned sort you seen post there. the January trends some in of And to through the can you've and Monday since season? expect expect You what the and How the us holiday season? comp for

stable, the is is a mattresses furniture. seeing business. Thanks, softer in business than the than trend we're mattress big-ticket business Jay. but Furniture certainly better in Overall,

the as others have interest I is until rate environment, to slightly to be still get big-ticket business going a under that think probably in pressure. we lower business reported

We business but who's working ticket the ticket big lead new on big our in feverishly furniture. pleased have team the of terms I'm progress, some in a of on longer assortment. times with

part of for opportunity So will XXXX. an us as be that the latter into we get

as nature Bloomingdale's some Burch seeing handbags, on business a seeing of it brands, people nice and like environment As in to call, happens the Tory holidays well and nice driven the really being strength a what ball is an higher, newness see the to side on little crystal and that a Coach historic and We Macy's traditional as little beginning reports as saw business, some also relates lower. we some in mentioned the by inflation higher. handbags the Longchamp, after really consumer little where the well. The a of now

although and Christmas, Hanukkah in consumer choiceful is who come. only Now we this Cyber, see shopping, think has Kwanzaa in on so that the about I quantifying quarter-to-date election, remaining a consumer We're going a I post about shopping, to But still is talking not are a basis. post it. and But morning. for shown looking talking interest and everything real value, interested the

variety think which for a of in interested And I all of X nameplates. people well, our categories, I see bodes

There comments. are this turn Spring questions it to Mr. back closing to no I'd time. further over Tony at like for

questions your Just your morning. thank this want for everybody and time to

families best, opportunities the good you hard quarter, your remainder We fourth talk in the of the XXXX a trend we new holiday the and on XXXX. I you of a solid as season. and total start and to have as work we with want year. quarter the happy wish out at to will team of look to deliver a third in coming very All the the

and this Ladies gentlemen, event. today's concludes

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