The following is a summary of the Macy's, Inc. (M) Q1 2024 Earnings Call Transcript:
Financial Performance:
Macy's reported Q1 net sales of $4.8 billion, near the top end of the company's outlook.
The adjusted EPS of $0.27 was above their outlook.
Gross margin rate declined by 80 basis points to 39.2%.
Macy's reported a comp increase of 3% to 4% in its First 50 stores due to various initiatives.
Their credit card revenues in Q1 exceeded their expectations due to higher portfolio balances and better than expected profit sharing with Citi.
Gross Margin in Q2 is expected to at least be 170 basis points above the previous year.
Business Progress:
Macy's is making progress with its Bold New Chapter strategy, aiming to strengthen their brand, accelerate luxury growth, and modernize operations.
It continues to focus on its omnichannel initiatives across product, presentation, and experience.
The company experienced growth in digital and luxury segments under Bloomingdale's and Bluemercury brands.
Their 'First 50' pilot locations registered a 3.4% comp gain. Plans to introduce 11 more small format locations throughout the year.
The growth of Macy's Media Network (MMN) exceeded 20% compared to the prior year due to better vendor engagement.
The company plans to open 30 new Bluemercury stores and remodel the existing 30 over the next few years.
More details: Macy's IR
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