Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| that is well positioned to thrive and create meaningful value for all of our stakeholders |
| The go-forward performance of our private brand fleet is well performing to our plan |
| Taking a step back, this holiday season, we offered an improved omnichannel experience with effective merchandising and a clear demonstration of value |
| Fourth quarter and full year adjusted EPS were above our most recent guidance, reflecting better-than-expected gross margin, SG&A and other revenues and higher asset sale gains |
| We're pleased with the traction that we're seeing, and we'll continue to keep you updated as that evolves throughout the year |
| And so we're navigating that throughout the year, but we're encouraged with the traction that we're seeing, particularly in the test and first 50 stores |
| A Bold New Chapter is designed to return Macy's, Inc.'s enterprise growth, unlock shareholder value and better serve our customers |
| So there's an ample opportunity to grow across all 3 nameplates by making sure that our assortments are appropriate, as Adrian talked about, making sure that our inventory is accurately allocated between the channels and getting into a more normalized environment where we're not up against as many discontinued private brands |
| to deliver low single-digit comp growth, mid-single-digit EBITDA dollar growth and a return to pre-pandemic levels of free cash flow |
| But what's nice about the EBITDA benefit is with scale assortment on the marketplace, the rate of EBITDA increases pretty rapidly |
| So I would say more work to come, but very pleased with the initial results in private brand and the work we're beginning now in earnest in market brands |
| There are a few brands that have the deep heritage and a strong emotional connection with its customer |
| So far, I feel good about the work that we've done in private brand, have a little more work to do to exit the remaining private brands but that should be a growth vehicle for us in the years to come |
| By putting the customer first, which has always been my priority, we improved Bloomingdale's sales profit and Net Promoter Scores |
| We feel like we are making solid progress |
| Strengthening the Macy's nameplate should result in healthier sell-throughs and more productive stores, benefiting Macy's sales and margin profile and returning the nameplate to growth |
| So we are very pleased with how we're approaching it, but we expect and commit to continued EBITDA expansion going forward |
| And that's about a better customer experience the cost disciplines that we're putting in place, the healthy and elevated gross margin profile that we continue to sustain because of our inventory discipline, our inventory discipline as well as our cost accounting practices that are coming online this year |
| So I feel good about the go-forward fleet, the decisions we've made and the value to monetize is greater than the value to operate in these stores |
| So we're very, very pleased with that |
| As we continue to think about these disciplines going forward, I'm really excited about what it means on the cost accounting |
| And what you see with the 80 basis point improvement in delivery expense, it's really around better allocation and simplifying our fulfillment processes are benefiting from that |
| Importantly, our healthy balance sheet allows us to be opportunistic on timing of the closures to deliver the highest value for our shareholders |
| With the 340 basis point improvement over last year in the fourth quarter merchandise margin |
| We've been very disciplined on inventory management over the years, and that continues to serve us quite well |
| And Bloomingdale's is coming off of several years of good performance and has the opportunity to capitalize on the disruption in the marketplace |
| They have ample opportunity for growth |
| Our staffing changes also showed and yielded favorable results and we expect to have more traction on our Bold New Strategy or Bold New Chapter Strategy initiatives as we progress through the year in stores, in digital and marketing in different parts of our business |
| With increased visibility and awareness across the entire categories, merchants should be able to provide more consistency in product and experience and reduce duplication |
| We've done a number of testing coming out of last year that have been scaled is 2022 and the first 50, which gives us confidence and conviction of the traction around the top line sales that we actually have provided in our guidance |
| Statement |
|---|
| Net sales of $8.12 billion was down 1.7% to last year with comparable owned plus licensed sales down 4.2% |
| I think the comment about the decline in fourth quarter transactions, was more pronounced at Macy's than had Bloomingdale's or Bluemercury, although all segments are under pressure |
| By nameplate, Macy's net sales declined 2.5% and comparable sales declined 4.7% on an owned plus licensed basis |
| The first thing is that the consumer remains under pressure |
| As such, we expect our consumer to remain under pressure |
| O+L+M comp sales, inclusive of non-go-forward locations and digital to be down approximately 1.5% to up approximately 1.5% |
| On the credit income, you're guiding it down to 30% for the year that excludes the potential regulation change on late fees, but it was down 30% in the fourth quarter |
| As you know, Mike, the last few years had an abnormally low or historically low level of net credit losses, delinquencies as folks were flushed with cash |
| I just want to ask on, I guess, on the gross margin for first quarter guided down after a pretty impressive beat in fourth quarter |
| Macy's nameplate, excluding non-go-forward locations, comparable O+L+M sales to be down 1% to up 2.5% and luxury nameplates comparable O+L+M sales to be about flat to up 2.5% |
| So the consumer remains under pressure, I'm not going to worry about what we can control |
| We have reevaluated our foundation to improve search and navigation tools |
| The likelihood of a recession is now lower than it was a year ago |
| Parsing that out, Credit card revenues decreased 26% from prior year to $195 million and Macy's Media Network rose 5% to $60 million |
| We expect gross margin rate to be down no more than 40 basis points to last year, reflecting a normalized clearance and promotional cycle compared to the first quarter of last year, when we did not have enough spring transitional product, adjusted EPS to be between $0.10 and $0.16 which assumes no asset sale gains |
| We are modelling a 1% to 4% decline in Macy's Inc |
| Year-end inventories were up 2% to last year and down 16% to 2019, reflecting our desire to own more seasonally appropriate transitional product |
| Just on the transaction decline in the fourth quarter |
| We have challenged the status quo, identified what we've gotten right and where we could have done better |
| In setting our Bold New Chapter strategy, we've been our own toughest critics |
Please consider a small donation if you think this website provides you with relevant information