Macy's, Inc. Q3 FY2025 earnings call

Pillar Contributions - Strengthening and Reimagining Macy's: Macy's nameplate saw 2% comp growth, driven by Go-Forward Macy's and Reimagine 125 stores. - Accelerating and Differentiating Luxury: Bloomingdale's had 9% comp growth, Bluemercury 1.1% comp growth. - Simplifying and Modernizing End-to-End Operations: Opened China Grove distribution center with automation and AI for efficient deliveries. ### Holiday Initiatives: Macy's Thanksgiving Day Parade set records, holiday campaign 'The Most Wonderful Stories Start Here' in full swing, 25 days of gifting, and Santaland IP usage.

Macy's nameplate achieved 2% comparable sales growth, its second quarter of positive results with Go-Forward Macy's rising 2.3% and Reimagine 125 stores up 2.7%. Bloomingdale's delivered a positive 9% comp, its best in 13 quarters. Bluemercury achieved 1.1% comparable sales growth. The new China Grove distribution center, a 2.5 million square foot facility incorporating automation, robotics, and AI, supports customer fulfillment and store replenishment for the Macy's nameplate.

Fourth Quarter: Expect net sales ~$7.35B - $7.5B, comparable sales down ~2.5% to flat (Go-Forward down ~2% to flat), core adjusted EBITDA 9.4%-10.1% of total revenue, adjusted EPS $1.35 - $1.55. ### Full Year 2025: Net sales ~$21.475B - $21.625B, comparable sales flat to up 0.5% (Go-Forward flat to up ~1%), gross margin 37.7%-37.9%, adjusted EPS $2 - $2.20.

Tariffs impacting gross margin, consumer behavior and market competition affecting sales performance.

Q: With two straight quarters of positive comps, speak to traction with reimagined store initiatives as it relates to traffic versus basket and November comp trends?

A: Tony Spring notes traction in Reimagine 125 with positive growth in first 50 and next 75, consistent traffic and AUR, and confidence in strategy despite choiceful consumer.

Q: How has the department store competitive landscape evolved and where do you see it going?

A: Antony Spring states Macy's is performing well, with sharp pricing, good presentations, and well-positioned for holidays against competitors.

Q: On store closures, where expect to be at end of year and future plans?

A: Thomas Edwards mentions store closures will be addressed on fourth quarter call, remaining committed to store optimization program.

Q: Thoughts on newness and its impact on capturing customers?

A: Antony Spring discusses newness across price points, importance of balance in assortments for Macy's and Bloomingdale's to capture new and retain existing customers.