Macy's Inc · NYSE:M
Macy's — Q3 2019 Earnings Presentation
14 slides from Macy's's earnings presentation, Nov 21, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation Jeff Gennette, Chairman & CEO | Paula Price, CFO | Hal Lawton, President November 21, 2019
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: 3Q19 Highlights
3Q19 Highlights • Third quarter sales decline driven by: • Soft international tourism • Weaker than anticipated performance in lower tier malls • Late arrival of cold weather • Temporary impact on e-commerce due to site improvements in preparation for holiday • Cleared excess inventory we faced earl
Slide 4: Third Quarter Snapshot
Third Quarter Snapshot in millions except per share figures and percentages 3Q19 Net Sales $5,173 Comp sales - owned (3.9)% Comp sales - owned + licensed (3.5)% Credit card revenues, net $183 Gross margin $2,067 Gross margin rate 40.0% SG&A $2,202 SG&A rate 42.6% Gains on sale of real estate $17 GAA
Slide 5: Growth150 Overview Q3 Update
Growth 150 Overview Q3 Update • Growth investment model: upgrades to facilities, fixtures, staffing, assortment and • Work on the Growth150 stores is customer service to build a scalable model for complete brick & mortar growth • Scaled to another 100 locations in 2019: • Growth stores continue to o
Slide 6: Backstage Overview
Backstage Overview Q3 Update • Macy’s on-mall, off-price business: 215 • Opened 50 locations year-to-date locations within Macy’s stores nationwide and 7 freestanding locations at the end of Q3 2019 • Backstage sales exceeded expectations in the quarter • Dedicated Backstage distribution center up a
Slide 7: Destination Businesses Overview Q3 Update
Destination Businesses Overview Q3 Update • Competitive advantage: drive cross-shopping to take advantage of department store model • Particular strong performance in • Six categories represented ~37% of total 2018 sales Mattresses, Fine Jewelry, Fragrances, • Allocating additional resources to gain
Slide 8: Mobile Overview Q3 Update
Mobile Overview Q3 Update • Delivered more than $1 billion in sales through mobile apps in 2018 • Triple digit growth in app downloads • Fastest growing channel; Expect outsized growth in year-to-date and significant growth in 2019 our mobile active users as we continue to improve the experience • I
Slide 9: Vendor Direct Overview Q3 Update
Vendor Direct Overview Q3 Update • Expansion of online assortment • Nearly doubled SKUs online since the expansion in • Added nearly 1,000 new vendors and early 2018 one million new SKUS year-to-date • Includes products from our existing national brands and the addition of new brands and categories
Slide 10: Multi-Year Productivity Program: Changing the Way We Work
MULTI-YEAR PRODUCTIVITY PROGRAM: CHANGING THE WAY WE WORK Supply Merchandising Marketing Stores Private Brand Indirect Spend Chain Mix & Pricing Sourcing Procurement • Build a best-in- • Optimize pricing: • Optimize • Offset wage • Reduce costs • Negotiating class Supply Chain targeted promotions in
Slide 11: Bloomingdale's and Bluemercury Q3 Highlights
Bloomingdale’s and Bluemercury Q3 Highlights • Bloomingdale’s saw strongest performance in stores • Bluemercury had a strong quarter with double-digit year-to-date sales growth • Business was led by Luxury Fragrances, Salon Shoes • Opened four stores in the quarter and Contemporary Ready-to-Wear • L
Slide 12: Guidance
Guidance in millions except per share figures and percentages Updated FY19 Guidance Prior FY19 Guidance Net Sales Down 2.5% to down 2.0% Approximately flat Comp sales - owned ~20bps below owned + licensed Flat to +1.0% Comp sales - owned + licensed Down 1.5% to down 1.0% Flat to +1.0% Credit card re
Slide 13: Confidence in Holiday
Confidence in Holiday Expanded gifting assortment with a “gifts under” strategy that ensures we reach all of our customers with great products at all price points across categories Powerful marketing calendar that addresses the cadence of a shorter holiday season and engaging with both our best and
Slide 14: Investor Day
Investor Day On February 5th, 2020, we will provide: • A view of the Macy’s customer franchise and actions we are taking to drive further engagement with our existing customers, while we also bring new customers into the brand • A detailed view of our omni-channel growth strategies, including an upd