Macy's Inc · NYSE:M
Macy's — Investor Presentation (March 2019)
18 slides from Macy's's investor presentation, Mar 28, 2019
Slide 1: Macy's, Inc. March 28, 2019
macys Inc March 28, 2019 bluemercury - BLOOMINGODALE ji J, LAL AM
Slide 2: Safe Harbor Statement
Safe Harbor Statement All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations a
Slide 3: Company of iconic brands with strong balance sheet and cash flow
Macy’s, Inc. is a company of iconic brands with a strong balance sheet, significant cash flow and solid dividend. We will continue to enhance shareholder value by investing in our business to drive sustainable, profitable growth. We operate approximately 680 department stores and nearly 190 specialt
Slide 4: Five strategic initiatives
Full year of comparable sales growth 2018 Five strategic initiatives grew sales Flexible, durable balance sheet 4
Slide 5: Path to deliver sustainable, profitable growth
Path to deliver sustainable, profitable growth STEP 1: 2019 Comparable sales growth STEP 2: Take market share and beyond STEP 3: Healthy customer base STEP 4: Future profitability growth 5
Slide 6: Balanced Investment to Support Our Winning Formula
Balanced Investment to Support Our Winning Formula • Improved health across fleet • 38 consecutive quarters of • Fastest growing channel • Backstage double-digit growth More than $1B sales on • Flagships • Enhanced pickup and apps • Growth/magnet stores delivery options • My Wallet, My Store, My • N
Slide 7: 2019 Strategic Initiatives
2019 Strategic Initiatives Add 100 doors Expand to 50 Continue and keep the Macy’s stores Continued “mobile first” Taking market original 50 and deliver aggressive strategy and share in: growing ahead positive comps expansion of deliver outsized Dresses of the total for locations vendors and growth
Slide 8: End-to-end review focused on growing profitability rate
A comprehensive end-to-end review focused on growing our profitability rate by improving productivity across the enterprise 8
Slide 9: Productivity program and cost structure review
Supply Merchandising Store Private Indirect Spend Marketing Chain Mix & Pricing Labor Label Procurement Sourcing • Disciplined, multi-year productivity program • End-to-end review of our cost structure • Validation of 3-5 year financial plan underway • Offset rising costs and fund investments we’re
Slide 10: Invest, grow the topline, grow the bottom line
Invest In the business Grow the Bottom Line Generate more Sales Drive Productivity Grow the Topline 10
Slide 11: Healthy Balance Sheet
Healthy Balance Sheet • Repurchased $1.1 billion of debt in fiscal 2018 • $750 million tender in 4Q 2018 • Leverage ratio of 2.5x, including asset sale gains • Leverage ratio of 2.9x, excluding asset sale gains • Will use excess cash to further reduce debt to within target ratio, excluding asset sal
Slide 12: FY 2019 Guidance
FY 2019 Guidance Adjusted Diluted EPS $3.05 - $3.25 Asset Sale Gains ~$100 Million Adjusted Diluted EPS Ex Asset Sale Gains $2.80 - $3.00 Comp Sales - Owned Flat To +1% Comp Sales - Owned + Licensed Flat To +1% Net Sales ~Flat Credit Card Revenue $740-765 Million Rate Down Moderately in 1H, Gross Ma
Slide 13: Appendix
Appendix * macys inc | 13
Slide 14: FY2018 Earnings Snapshot
FY2018 Earnings Snapshot (in millions) FY2018 Net Sales $24,971 Comp Sales - Owned 1.7% Comp Sales - Owned + Licensed 2.0% Gross Margin 39.1% Credit Card Revenue $768 Asset Sale Gains $389 Adjusted EBITDA $2,877 Net income attributable to Macy’s, Inc. shareholders $1,108 Diluted EPS $3.56 Adjusted D
Slide 15: Other Earnings Drivers
Other Earnings Drivers Credit Program: A Competitive Advantage • Integrated role in customer offering • Drives sales – roughly half of our sales occur on our proprietary credit card • Enhanced by Loyalty program; the resulting credit card revenue helps offset associated loyalty expenses such as free
Slide 16: 2018 Strategic Initiative Scorecard
2018 Strategic Initiative Scorecard Loyalty Store Pickup Backstage Store Vendor Growth within a Store Direct 50 Platinum ~7% of online Opened 120+ Nearly Outperformed customer sales locations doubled fleet spend +~10% online SKUs More than 3 ~25% +5% average ~10% of online Higher million Bronze asso
Slide 17: FY2018 Highlights
FY2018 Highlights • Total sales up double digits • 26 new standalone stores • Online sales increased >50% • Private brands >10% total sales • Double digit sales growth online th • Renovated 59 Street flagship • Flagship’s best year since 2013 • Enhanced customer experience 17
Slide 18: America's Store For Life
America’s Store For Life Like No Other Store in the World Your Neighborhood Beauty Destination The largest retail brand of Macy's, Inc., Bloomingdale’s is America’s only nationwide, Macy’s delivers quality fashion at affordable full-line, upscale department store and is Bluemercury is a luxury beaut