- February sales performance in line with expectations
- COVID-19 pandemic significantly impacted March and April
sales
- Digital sales trend continues to improve
- Business expected to return gradually, with most stores
reopened by late June
Macy’s, Inc. (NYSE: M) today provided preliminary sales and
operating results ranges for the first quarter of 2020. The company
expects to provide select and preliminary first quarter 2020
financial results on June 9, 2020 and will release its first
quarter earnings results and hold a related call on July 1,
2020.
Financial Highlights
Estimated First Quarter
2020
First Quarter 2019
In millions
Low
High
Net sales
$3,000
$3,030
$5,504
Operating Income (Loss) (1)
$(1,110)
$(905)
$203
In millions
Estimated First Quarter
2020
First Quarter 2019
Cash and Cash Equivalents
$1,523
$737
Total Debt
$5,657
$4,721
(1) Operating Income / (Loss) excludes estimated pre-tax
non-cash goodwill and long-lived asset impairment charges expected
to be recorded for the first quarter of 2020. The company is
currently performing impairment assessments for certain of our
long-lived asset groups as well as goodwill.
“This is a challenging time for the country, for retail and for
Macy’s, Inc. COVID-19 has impacted the lives of many of our
colleagues and customers, and health and safety remain our top
priority. We closed all of our stores - Macy’s, Bloomingdale’s and
Bluemercury - on March 18, which had a significant impact on our
first quarter results,” said Jeff Gennette, chairman and chief
executive officer. “Looking back, our performance in February was
solid and in line with our expectations, but we saw a precipitous
decline in sales with the stores closure in March. As a developed
omnichannel retailer, we experienced a steady uptick in our digital
business in April, which was encouraging, but only partially offset
the loss of sales from the stores. The digital performance was
driven by strong execution and enhanced fulfillment options,
including curbside pickup where allowed.”
“We began reopening our stores on May 4 and, as of this week,
have approximately 190 Macy’s and Bloomingdale’s stores open in
their full formats. We expect another 80 Macy’s stores to open for
Memorial Day weekend. We have enhanced health and safety standards
across all of our stores and facilities. We are also offering
curbside pickup in many of our locations, including some stores
that remain closed to the public. With two weeks of results from
reopened stores, customer demand is moderately higher than we
anticipated. Customers also responded positively to our Mother’s
Day gifting strategy. Even in times of social distancing, our
customers want to celebrate the special occasions in their lives,
and we help them do that safely. We are closely watching consumer
behavior as we reopen more stores, and we remain flexible as we
navigate this crisis. We expect business to recover gradually. I
want to thank our teams who are re-setting plans daily, innovating
quickly and executing well,” Gennette continued.
“We notified our banking partners early on of our plans to
access additional financing, and this process is on track. We are
confident we will obtain this financing before it is needed,
allowing us to improve our financial flexibility. We are taking the
right steps to ensure that Macy’s, Inc. will emerge on the other
side of this crisis a strong, resilient company and ready to serve
our customers,” Gennette continued.
Today at 8:00am ET, Gennette and Paula Price, chief financial
officer, will participate in a fireside chat with Matt Boss,
managing director, senior research analyst at J.P. Morgan. Media
and investors may access a live audio webcast of the presentation
at www.macysinc.com/investors. A replay of the webcast will be
available on the company’s website.
CFO Transition As previously announced, Price has made
the decision to leave the company as of May 31, 2020. She will
continue in her current role until that date, and in order to
support a well-ordered transition, Price will remain an advisor to
the company through November 2020. Upon Price’s departure, Felicia
Williams, a seasoned Macy’s, Inc. veteran who currently serves as
senior vice president, controller and enterprise risk officer, will
become interim chief financial officer. Williams will serve as
interim chief financial officer until a permanent replacement has
been named.
Williams has served in her current role since 2016. Previously,
Williams was a vice president, responsible for enterprise risk and
internal audit. Williams has been with Macy’s, Inc. since 2004 and
has held various leadership positions across financial services,
accounting and risk management. Prior to joining Macy’s, Inc.,
Williams held various roles at The Coca-Cola Company and
Bristol-Myers Squibb. She is a Certified Public Accountant.
About Macy's, Inc. Macy’s, Inc. (NYSE: M) is one of the
nation’s premier omni-channel fashion retailers, with fiscal 2019
sales of $24.6 billion. The company comprises three retail brands,
Macy’s, Bloomingdale’s and Bluemercury. Macy’s, Inc. is
headquartered in New York, New York. For more information, please
visit www.macysinc.com.
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 the
finalization of Macy’s financial statements as of and for the 13
weeks ended May 2, 2020, including the actual amount of the
impairment charges that it expects to incur for the period, the
effects of the novel coronavirus (COVID-19) on customer demand, its
supply chain as well as its consolidated results of operation,
financial position and cash flows, Macy's ability to obtain
additional financing on commercially acceptable terms or at all,
Macy’s ability to successfully implement its Polaris strategy,
including the ability to realize the anticipated benefits within
the expected time frame or at all, conditions to, or changes in the
timing of proposed real estate and other transactions, prevailing
interest rates and non-recurring charges, the effect of potential
changes to trade policies, store closings, competitive pressures
from specialty stores, general merchandise stores, off-price and
discount stores, manufacturers’ outlets, the Internet, catalogs and
television shopping and general consumer spending levels, including
the impact of the availability and level of consumer debt, possible
systems failures and/or security breaches, the potential for the
incurrence of charges in connection with the impairment of
intangible assets, including goodwill, Macy’s reliance on foreign
sources of production, including risks related to the disruption of
imports by labor disputes, regional or global health pandemics, and
regional political and economic conditions, the effect of weather
and other factors identified in documents filed by the company with
the Securities and Exchange Commission. Macy’s disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200521005204/en/
Media - Blair Rosenberg media@macys.com
Investors - Mike McGuire investors@macys.com
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