Macy's Inc · NYSE:M
Macy's — Q1 2020 Earnings Presentation
9 slides from Macy's's earnings presentation, Jul 1, 2020
Slide 1: First Quarter 2020 Earnings
First Quarter 2020 Earnings Jeff Gennette, Chairman & CEO | Felicia Williams, Interim CFO July 1, 2020
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: First Quarter Snapshot
First Quarter Snapshot in millions except per share figures and percentages 1Q20 Net Sales $3,017 Credit card revenues, net $131 Gross margin $516 Gross margin rate 17.1% SG&A $(1,598) SG&A rate (52.9%) Impairment, restructuring and other costs $(3,184) Gains on sale of real estate (ASG) $16 GAAP di
Slide 4: Nearly All Stores Reopened by End of June
Nearly All Stores Reopened by End of June 600 • Reopened stores have performed better than 500 anticipated 400 • Large urban and flagship stores are opening more slowly than 300 the earlier stores; expect 200 gradual recovery in regions hardest hit by pandemic 100 • Don’t anticipate another full 0 s
Slide 5: Digital Performance Exceeding Expectations
Digital Performance Exceeding Expectations • Encouraging to see that, as stores reopened, the digital business in that market continued to be strong • Pleased with digital metrics including: sales, traffic, conversion, mobile engagement, and new customer acquisition • New customers coming into our s
Slide 6: Actions Taken to Maintain Financial Flexibility
Actions Taken to Maintain Financial Flexibility • Temporarily extended payment terms to 120 days and cancelled orders where possible • Suspended the shareholder dividend • Furloughed majority of colleagues and temporarily reduced pay for senior management Q1 • Reduced planned 2020 capital expenditur
Slide 7: Managing Cost Base to Align with Adjusted Sales Expectations
Managing Cost Base to Align with Adjusted Sales Expectations SG&A improvement by expense category – July 2020 ~ $1.5 Billion Incremental Target under June Restructuring ~$630 Million February Polaris Target ~$900 Million Marketing Supply Chain Stores Corporate 2022 run-rate & other savings Note: The
Slide 8: Refocused Polaris Strategy Post-COVID
Continue Refocus Refocused Polaris Strategy Post-COVID Pause Accelerate 1 2 3 4 5 STRENGTHEN CURATE QUALITY ACCELERATE OPTIMIZE STORE RESET CUSTOMER FASHION DIGITAL GROWTH PORTFOLIO COST BASE RELATIONSHIPS Build profitable Drive Category Enhance digital Invest in best Right-size customer lifetime ro
Slide 9: The Health & Safety of Our Colleagues & Customers is Our Priority
The Health & Safety of Our Colleagues & Customers is Our Priority It is Macy’s priority to create a safe and convenient shopping environment for everyone in our stores. Macy’s health and safety standards align with The Centers for Disease Control and Prevention (CDC) guidelines and local orders for