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|Macy’s, Inc. Announces November/December 2018 Sales Results|
Reports Positive Holiday Comparable Sales for the Second Consecutive Year
Revises Annual Sales and Earnings Guidance Down
“We delivered our second consecutive year of positive holiday comparable
sales, driven largely by the traction of our strategic initiatives:
Backstage, Vendor Direct, Store Pickup, Loyalty and Growth50. We
experienced another period of double-digit growth in our digital
business and continued strength in the Growth50 stores. The holiday
season began strong – particularly during Black Friday and the following
Cyber Week, but weakened in the mid-December period and did not return
to expected patterns until the week of Christmas,” said
“We are revising the guidance we provided in November and will continue to take the necessary steps in January to ensure a clean inventory position as we enter fiscal 2019,” Gennette continued. “Looking back at 2018, we met our goal of returning the company to growth. Our revised guidance is above the expectations we set at the start of the fiscal year, and we expect to deliver our fifth consecutive quarter of positive comparable sales, including ‘comping the comp’ of the 2017 holiday season. The North Star Strategy is gaining traction, and the entire organization is engaged and motivated to continue improving our performance in 2019.”
2018 Annual Guidance
Macy’s, Inc. is revising sales and earnings guidance. The company is also providing additional detail on the company’s anticipated annual performance for fiscal 2018, noting that there are several weeks left in the quarter. As the company has not completed its quarter close, the data presented in this press release may change.
Annual diluted EPS guidance includes
Net sales guidance is provided on a 52-week basis in 2018 compared to a
53-week basis in 2017. Comparable sales guidance is provided on a
52-week basis in both 2018 and 2017. In addition, the company's 2018
results and guidance for fiscal 2018 reflect the new accounting
standards related to revenue recognition and retirement benefits.
Comparable Sales Shift
Macy’s, Inc. is also providing additional detail on the impact of the 53rd week on its reported comparable sales for fiscal 2018.
Comparable sales adjusted for the impact of the 53rd week reflect a shift of the company’s fiscal 2017 calendar to align with fiscal 2018 on a like-for-like basis. Additionally, as previously reported, the 53rd week in 2017 shifted the spring Friends and Family promotion, which positively impacted first quarter 2018 owned plus licensed comparable sales by approximately 250 basis points and negatively impacted second quarter 2018 owned plus licensed comparable sales by approximately 240 basis points.
Fourth Quarter Earnings Announcement
Macy’s, Inc. is scheduled to report fourth quarter sales and earnings
Important Information Regarding Financial Measures
Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.
Macy’s, Inc. is one of the nation’s premier retailers. With fiscal 2017
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including conditions to, or changes in the timing
of, proposed real estate and other transactions, prevailing interest
rates and non-recurring charges, the effect of federal tax reform, store
closings, competitive pressures from specialty stores, general
merchandise stores, off-price and discount stores, manufacturers’
outlets, the Internet, mail-order catalogs and television shopping and
general consumer spending levels, including the impact of the
availability and level of consumer debt, the effect of weather and other
factors identified in documents filed by the company with the
Important Information Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with U.S.
generally accepted accounting principles ("GAAP"). However, management
believes that certain non-GAAP financial measures provide users of the
company's financial information with additional useful information in
evaluating operating performance. Management believes that providing
supplemental changes in comparable sales on an owned plus licensed basis
and changes in comparable sales on an owned plus licensed basis adjusted
for the 53rd week calendar shift, which include adjusting for
growth in comparable sales of departments licensed to third parties,
assists in evaluating the company's ability to generate sales growth,
whether through owned businesses or departments licensed to third
parties, and in evaluating the impact of changes in the manner in which
certain departments are operated. In addition, management believes that
excluding certain items from diluted earnings per share attributable to
The reconciliation of the forward-looking non-GAAP financial measure of changes in comparable sales on an owned plus licensed basis and changes in comparable sales on an owned plus licensed basis adjusted for the 53rd week calendar shift to GAAP comparable sales (i.e., on an owned basis) is in the same manner as illustrated below, except that the impact of growth in comparable sales of departments licensed to third parties is the only reconciling item. In addition, the company does not provide the most directly comparable forward-looking GAAP measure of diluted earnings per share attributable to Macy’s, Inc. shareholders excluding certain items because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
Important Information Regarding Non-GAAP Financial Measures
Changes in Comparable Sales
Source: Macy’s, Inc.