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|Macy’s, Inc. Reports November/December Sales and Updates 2015 Guidance|
On an owned basis, comparable sales declined by 5.2 percent in the combined November/December period.
(Editor’s Note: Macy’s, Inc. this afternoon also issued a separate news release outlining cost efficiencies and listing upcoming store closings.)
“The holiday selling season was challenging, as experienced throughout
2015 by much of the retailing industry. In the November/December period,
we were particularly disadvantaged by the historically warm weather in
northern climate zones where both Macy’s and Bloomingdale’s are
especially well-represented. About 80 percent of our company’s
year-over-year declines in comparable sales can be attributed to
shortfalls in cold-weather goods such as coats, sweaters, boots, hats,
gloves and scarves. We also continued to feel the impact of lower
spending by international tourists as the value of the dollar remained
“That said, we are buoyed by a very strong performance in our digital business, with continued double-digit increases in online sales. In November/December, we filled nearly 17 million online orders at macys.com and bloomingdales.com – a new record for our company and an increase of about 25 percent over last year – based on significant new fulfillment capacity, site functionality and aggressive digital marketing. This validates the strength of our omnichannel strategy and related investments which we made over the past decade and will continue into the future,” Lundgren said.
Please see the last page of this news release for important information regarding the calculation of the company’s comparable sales on an owned basis and comparable sales on an owned plus licensed basis.
Macy’s, Inc. is not expecting a major change in sales trend in January and expects a comparable sales decline on an owned plus licensed basis in the fourth quarter of 2015 to approximate the 4.7 percent decline in November/December (from previous guidance of down between 2 percent and 3 percent for the fourth quarter). This calculates to guidance for comparable sales on an owned plus licensed basis in the full-year 2015 to decline by approximately 2.7 percent (from previous guidance of down 1.8 percent to 2.2 percent).
The decline in fourth quarter comparable sales on an owned basis is expected to be approximately 50 basis points greater than on an owned plus licensed basis.
Earnings per diluted share for the full-year 2015 now are expected in
the range of
Fourth Quarter Announcement
Macy’s, Inc. is scheduled to report fourth quarter sales and earnings on
Macy’s, Inc., with corporate offices in
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 transactions, prevailing interest rates and non-recurring
charges, 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
(Note: additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)
Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages)
The Company reports its financial results in accordance with 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. See the table below for supplemental financial data and a corresponding reconciliation to the most directly comparable GAAP financial measures. This non-GAAP financial measure 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 this non-GAAP financial measure may be significant items that could impact the Company's financial position, results of operations and cash flows and should therefore be considered in assessing the Company's actual 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.
Source: Macy’s, Inc.