Quarterly net sales and earnings exceeded
expectations
Comparable sales up 37.2% on an owned basis and
up 35.6% on an owned-plus-licensed basis versus 2020; up 8.9% and
up 8.7%, respectively, versus 2019
Diluted EPS of $0.76 and Adjusted diluted EPS
of $1.23
Repurchased $300 million of shares, repaid $1.6
billion in debt ahead of schedule and paid $46 million in
dividends
Added 4.4 million new customers into Macy’s
brand, a 28% increase over 2019
Announces plans to launch curated digital
marketplace platform
Macy’s, Inc. (NYSE: M) today reported financial results for the
third quarter of 2021.
“Our company delivered another strong quarter and exceeded our
expectations on both top and bottom lines. The results were driven
by the effective execution of the Polaris strategy and an improved
economic environment. In the quarter, the Macy’s brand added 4.4
million new customers. Consumers continue to spend, and we
successfully offered a wide range of expanding merchandise
assortment to meet their growing demand,” said Jeff Gennette,
chairman and chief executive officer of Macy’s, Inc. “Looking ahead
to the fourth quarter, we remain a special place for holiday
shopping, and our robust omnichannel ecosystem is showing
resilience in the face of labor and supply chain challenges and
enables us to meet customer shopping needs with speed and
convenience.”
“We are encouraged by the momentum of our business and its
strong financial health and continue to invest in positioning our
company for long-term sustainable and profitable growth,” Gennette
continued. “Today, we are announcing plans to launch a curated
digital marketplace platform that will further fuel customer
acquisition and sales growth across all of our channels.”
Additional details about the new digital marketplace platform
will be provided in a dedicated press release.
Third Quarter Highlights
In addition to prior year comparisons, Macy’s, Inc. is providing
comparisons to 2019 to benchmark its performance given the impact
of the pandemic last year.
- Diluted earnings per share of $0.76 and Adjusted diluted
earnings per share of $1.23 both exceeded expectations for the
quarter.
- This compares to a diluted loss per share of $(0.29) and an
Adjusted diluted loss per share of $(0.19) in third quarter
2020.
- This compares to diluted earnings per share of $0.01 and
Adjusted diluted earnings per share of $0.07 in third quarter
2019.
- In the third quarter 2021, Adjusted diluted earnings per share
excludes the charges related to the recognition of fees associated
with the early retirement of debt.
- Comparable sales up 37.2% on an owned basis and up 35.6% on
an owned-plus-licensed basis versus 2020; up 8.9% and up 8.7%,
respectively, versus 2019.
- On a comparable owned-plus-licensed basis, the third quarter
2021 includes a 200-basis point benefit resulting from the shift of
the Friends and Family promotional event into the third quarter
from the fourth quarter as compared to 2019.
- Digital sales increased 19% versus third quarter 2020 and
grew 49% versus third quarter 2019.
- Digital penetration was 33% of net sales, a 5-percentage point
expected decline from third quarter 2020, but a 10-percentage point
improvement over third quarter 2019.
- Highlights of the company's nameplates include:
- Macy’s comparable sales were up 36.4% on an owned basis and
up 35.1% on an owned-plus-licensed basis compared to the third
quarter of 2020, and up 9.0% and 8.4%, respectively, compared to
the third quarter of 2019.
- Approximately 4.4 million new customers shopped the Macy's
brand, a 28% increase compared to third quarter 2019, with 41% of
these customers coming through the digital channel in third quarter
2021.
- Platinum, Gold and Silver customers in the Star Rewards Loyalty
program continued to engage, with the average customer spend up 16%
compared to the third quarter of 2019.
- The Bronze segment of the Star Rewards Loyalty program, its
youngest and most diverse loyalty tier, continued to grow with the
addition of 2.3 million new members during the quarter.
- Categories that were solid throughout the pandemic, including
home, fragrances, jewelry, watches and sleepwear, continued to see
strong sales performance.
- Occasion-based categories, such as dresses, men’s tailored and
luggage, continued to recover.
- Emerging categories, such as toys and pets, showed encouraging
results and the company continues to expand on those categories and
related brands.
- Bloomingdale’s comparable sales on an owned basis were up
43.4% and on an owned-plus-licensed basis were up 38.5% compared to
the third quarter of 2020, and up 9.1% and 11.2%, respectively,
compared to the third quarter of 2019.
- Results were driven by strong sales of luxury handbags, fine
jewelry, home, men’s shoes and contemporary apparel.
- Bluemercury comparable sales were up 39.5% on an owned and
owned-plus-licensed basis compared to the third quarter of 2020,
but down 2.2% on an owned and owned-plus-licensed basis compared to
the third quarter of 2019.
- Private brands, home fragrance and treatment showed strong
sales performance during the quarter.
- Gross margin for the quarter was 41.0%, up from 35.6% in
third quarter 2020 and up 100 basis points from third quarter
2019.
- Improvement as a result of merchandise margin was largely due
to benefits from pricing, promotion and inventory productivity
enhanced by the Polaris strategy.
- Delivery expense as a percent of net sales increased 170 basis
points from third quarter 2019, due to increased digital
penetration.
- Inventory was up 19.4% from third quarter 2020 but down
15.4% from third quarter 2019.
- Compared to 2020, the company has increased inventory to meet
demand in stores and online. The company implemented several
measures to mitigate supply chain disruptions and does not expect
to be materially impacted during the fourth quarter 2021.
- Selling, general and administrative (“SG&A”) expense of
$1.97 billion, a $229 million improvement from third quarter
2019.
- SG&A expense as a percent of sales was 36.3%, an
improvement of 630 basis points from third quarter 2019.
- The quarter benefited from disciplined expense management and
improved productivity resulting from the company's Polaris
strategy, including the permanent cost savings realized in 2020,
along with reduced labor costs due to elevated job openings in
stores.
- Net credit card revenue of $213 million, up $30 million from
third quarter 2019.
- Represented 3.9% of sales, 100 basis points lower than third
quarter 2020 and 40 basis points higher than third quarter
2019.
- Improved bad debt levels driven by strong customer credit
health continued to contribute to the growth of credit card
revenue.
- Strong cash generation year-to-date allowed for execution of
capital allocation priorities:
- Repurchased $300 million of shares, accounting for 60% of the
$500 million authorization.
- Repaid early $294 million of debt due in January 2022 in
addition to the early repayment of the previously announced $1.3
billion senior secured notes in August.
- Paid $46 million in cash dividends to shareholders.
Revised Full-Year 2021 Guidance The company is narrowing
and raising its full-year 2021 guidance.
Revised Guidance 2021
Prior Guidance 2021
Net sales
$24.12B - $24.28B
$23.55B - $23.95B
Adjusted diluted earnings per
share
$4.57 - $4.76
$3.41 - $3.75
Adjusted EBITDA as a percent of
sales
>12.5%
11% - 11.5%
In the fourth quarter 2021, comparable sales on an
owned-plus-licensed basis versus 2019 are expected to increase
between 2% and 4%. This includes an approximately 125-basis point
adverse impact due to the shift of the Friends and Family
promotional event from the fourth quarter into the third quarter as
compared to 2019. A full overview of the company’s guidance can be
found in the third quarter 2021 earnings presentation at
www.macysinc.com/investors.
Conference Call and Webcasts
A webcast of Macy's, Inc.’s call with analysts and investors to
report its third quarter 2021 sales and earnings will be held today
(November 18, 2021) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along
with the associated presentation, is accessible to the media and
general public via the company's website at
www.macysinc.com/investors. Analysts and investors may call in on
1-800-458-4121, passcode 5692619. A replay of the conference call
and slides can be accessed on the website or by calling
1-888-203-1112 (same passcode) about two hours after the conclusion
of the call. Additional information on Macy’s, Inc., including past
news releases, is available at www.macysinc.com/pressroom.
Adrian Mitchell, chief financial officer of Macy’s, Inc., will
participate in a fireside chat at the Morgan Stanley Virtual Global
Consumer & Retail Conference at 8:00 a.m. ET on December 2,
2021. Media and investors may access a live audio webcast of the
presentation at www.macysinc.com. A replay of the webcast will also
be available on the company’s website.
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.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is one of the nation’s premier
omnichannel retailers. Headquartered in New York City, the company
comprises three retail brands: Macy’s, Bloomingdale’s and
Bluemercury. With a robust e-commerce business, rich mobile
experience and a national stores footprint, our customers can shop
the way they live — anytime and through any channel. For more
information, visit macysinc.com.
Forward-Looking Statements
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
effects of the COVID-19 pandemic on Macy's customer demand and
supply chain, as well as its consolidated results of operation,
financial position and cash flows, 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 and catalogs 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, labor shortages, the amount and timing of
future dividends and share repurchases and other factors identified
in documents filed by the company with the Securities and Exchange
Commission, including under the captions “Forward-Looking
Statements” and “Risk Factors” in the company’s Annual Report on
Form 10-K for the year ended January 30, 2021 and Quarterly Report
on Form 10-Q for the quarterly period ended July 31, 2021. 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.
MACY’S, INC.
Consolidated Statements of Operations (Unaudited) (Note
1)
(All amounts in millions except
percentages and per share figures)
13 Weeks Ended
October 30, 2021
13 Weeks Ended
October 31, 2020
% to
% to
$
Net sales
$
Net sales
Net sales
$
5,440
$
3,990
Credit card revenues, net
213
3.9
%
195
4.9
%
Cost of sales
(3,207
)
(59.0
%)
(2,569
)
(64.4
%)
Selling, general and administrative
expenses
(1,973
)
(36.3
%)
(1,726
)
(43.3
%)
Gains on sale of real estate
50
0.9
%
3
0.1
%
Impairment, restructuring and other costs
(Note 2)
—
—
(20
)
(0.5
%)
Operating income (loss)
523
9.6
%
(127
)
(3.2
%)
Benefit plan income, net
17
16
Settlement charges
(8
)
(26
)
Interest expense, net
(53
)
(80
)
Losses on early retirement of debt
(185
)
—
Income (loss) before income taxes
294
(217
)
Federal, state and local income tax
benefit (expense) (Note 3)
(55
)
126
Net income (loss)
$
239
$
(91
)
Basic earnings (loss) per share
$
0.78
$
(0.29
)
Diluted earnings (loss) per share
$
0.76
$
(0.29
)
Average common shares:
Basic
306.9
311.2
Diluted
313.8
311.2
End of period common shares
outstanding
299.3
310.3
Supplemental Financial Measures:
Gross Margin (Note 4)
$
2,233
41.0
%
$
1,421
35.6
%
Depreciation and amortization expense
$
225
$
250
MACY’S, INC.
Consolidated Statements of Operations (Unaudited) (Note
1)
(All amounts in millions except
percentages and per share figures)
39 Weeks Ended
October 30, 2021
39 Weeks Ended
October 31, 2020
% to
% to
$
Net sales
$
Net sales
Net sales
$
15,794
$
10,566
Credit card revenues, net
568
3.6
%
494
4.7
%
Cost of sales
(9,449
)
(59.8
%)
(7,788
)
(73.7
%)
Selling, general and administrative
expenses
(5,618
)
(35.6
%)
(4,723
)
(44.7
%)
Gains on sale of real estate
61
0.4
%
20
0.2
%
Impairment, restructuring and other costs
(Note 2)
(21
)
(0.1
%)
(3,445
)
(32.6
%)
Operating income (loss)
1,335
8.5
%
(4,876
)
(46.1
%)
Benefit plan income, net
49
37
Settlement charges
(90
)
(65
)
Interest expense, net
(211
)
(196
)
Losses on early retirement of debt
(199
)
—
Financing costs
—
(4
)
Income (loss) before income taxes
884
(5,104
)
Federal, state and local income tax
benefit (expense) (Note 3)
(197
)
1,000
Net income (loss)
$
687
$
(4,104
)
Basic earnings (loss) per share
$
2.21
$
(13.20
)
Diluted earnings (loss) per share
$
2.17
$
(13.20
)
Average common shares:
Basic
310.3
311.0
Diluted
317.0
311.0
End of period common shares
outstanding
299.3
310.3
Supplemental Financial Measures:
Gross Margin (Note 4)
$
6,345
40.2
%
$
2,778
26.3
%
Depreciation and amortization expense
$
668
$
722
MACY’S, INC.
Consolidated Balance Sheets (Unaudited) (Note
1)
(millions)
October 30,
2021
January 30,
2021
October 31,
2020
ASSETS:
Current Assets:
Cash and cash equivalents
$
316
$
1,679
$
1,551
Receivables
212
276
185
Merchandise inventories
6,141
3,774
5,144
Prepaid expenses and other current assets
(Note 6)
922
455
477
Total Current Assets
7,591
6,184
7,357
Property and Equipment – net
5,600
5,940
6,122
Right of Use Assets
2,808
2,878
3,028
Goodwill
828
828
828
Other Intangible Assets – net
435
437
437
Other Assets
1,017
1,439
1,442
Total Assets
$
18,279
$
17,706
$
19,214
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt
$
140
$
452
$
536
Merchandise accounts payable
3,796
1,978
3,267
Accounts payable and accrued
liabilities
2,735
2,927
2,848
Total Current Liabilities
6,671
5,357
6,651
Long-Term Debt
3,295
4,407
4,852
Long-Term Lease Liabilities
3,090
3,185
3,266
Deferred Income Taxes
970
908
917
Other Liabilities
1,245
1,296
1,285
Shareholders' Equity
3,008
2,553
2,243
Total Liabilities and Shareholders’
Equity
$
18,279
$
17,706
$
19,214
MACY’S, INC.
Consolidated Statements of Cash Flows (Unaudited) (Notes
1 and 5)
(millions)
39 Weeks Ended
October 30, 2021
39 Weeks Ended
October 31, 2020
Cash flows from operating activities:
Net income (loss)
$
687
$
(4,104
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Impairment, restructuring and other
costs
21
3,445
Settlement charges
90
65
Depreciation and amortization
668
722
Benefit plans
27
36
Stock-based compensation expense
32
21
Gains on sale of real estate
(61
)
(20
)
Deferred income taxes
19
(270
)
Amortization of financing costs and
premium on acquired debt
66
11
Changes in assets and liabilities:
Decrease in receivables
64
223
(Increase) decrease in merchandise
inventories
(2,367
)
34
(Increase) decrease in prepaid expenses
and other current assets
(44
)
29
Increase in merchandise accounts
payable
1,758
1,612
Increase (decrease) in accounts payable
and accrued liabilities
73
(598
)
Decrease in current income taxes
(50
)
(818
)
Change in other assets and liabilities
(142
)
(144
)
Net cash provided by operating
activities
841
244
Cash flows from investing activities:
Purchase of property and equipment
(230
)
(290
)
Capitalized software
(155
)
(96
)
Disposition of property and equipment
118
39
Other, net
64
33
Net cash used by investing activities
(203
)
(314
)
Cash flows from financing activities:
Debt issued
975
2,780
Debt issuance costs
(9
)
(102
)
Debt repaid
(2,448
)
(1,508
)
Debt repurchase premium and expenses
(152
)
—
Dividends paid
(46
)
(117
)
Decrease in outstanding checks
(97
)
(90
)
Acquisition of treasury stock
(294
)
—
Net cash provided (used) by financing
activities
(2,071
)
963
Net increase (decrease) in cash, cash
equivalents and restricted cash
(1,433
)
893
Cash, cash equivalents and restricted cash
beginning of period
1,754
731
Cash, cash equivalents and restricted cash
end of period
$
321
$
1,624
MACY’S, INC.
Consolidated Financial Statements (Unaudited)
Notes:
(1)
As a result of the seasonal nature of the
retail business, the results of operations for the 13 and 39 weeks
ended October 30, 2021 and October 31, 2020 (which do not include
the Christmas season) are not necessarily indicative of such
results for the fiscal year.
(2)
The 39 weeks ended October 31, 2020 also
included non-cash impairment charges totaling $3.2 billion, which
consisted of $3.1 billion of a non-cash goodwill impairment charge
and $83 million impairment charge on long-lived tangible and right
of use assets.
(3)
Income tax expense of $55 million and $197
million, or 18.7% and 22.3% of pretax income, for the 13 and 39
weeks ended October 30, 2021, respectively, reflect a different
effective tax rate as compared to the company’s federal income tax
statutory rate of 21% driven primarily by the impact of
return-to-provision adjustments that were identified in connection
with the filing of the U.S. federal income tax return in the
current quarter.
The income tax benefits of $126 million
and $1.0 billion, or 58.1% and 19.6% of pretax loss, for the 13 and
39 weeks ended October 31, 2020, respectively, reflected a
different projected benefit rate as compared to the company's
federal income tax statutory rate of 21% due to the carryback of
net operating losses as permitted under the CARES Act. For the 39
weeks ended October 31, 2020, the benefit of the available
carryback of net operating losses was offset by the impact of the
non-tax deductible component of the goodwill impairment charge and
additional income tax expense associated with the deferred tax
remeasurement recognized during the first quarter of 2020.
(4)
Gross margin is defined as net sales less
cost of sales.
(5)
Restricted cash of $5 million and $73
million have been included with cash and cash equivalents for the
39 weeks ended October 30, 2021 and October 31, 2020,
respectively.
(6)
Prepaid expenses and other current assets
as of October 30, 2021 include an income tax receivable of $590
million associated with the carryback of certain net operating
losses permitted under the Coronavirus Aid Relief and Economic
Security Act (“CARES” Act).
MACY’S, INC. 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, which includes
adjusting for the impact of 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. Earnings (loss) before interest, taxes, depreciation and
amortization (EBITDA) is a non-GAAP financial measure which the
company believes provides meaningful information about its
operational efficiency by excluding the impact of changes in tax
law and structure, debt levels and capital investment. In addition,
management believes that excluding certain items from EBITDA, net
income (loss) and diluted earnings (loss) per share that are not
associated with the company’s core operations and that may vary
substantially in frequency and magnitude from period-to-period
provides useful supplemental measures that assist in evaluating the
company's ability to generate earnings and to more readily compare
these metrics between past and future periods.
The company does not provide reconciliations of the
forward-looking non-GAAP measures of adjusted EBITDA, diluted
earnings per share, and comparable sales on an owned plus licensed
basis to the most directly comparable forward-looking GAAP measures
because the timing and amount of excluded items are unreasonably
difficult to fully and accurately estimate. For the same reasons,
the company is unable to address the probable significance of the
unavailable information, which could be material to future
results.
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.
MACY’S, INC.
Important
Information Regarding Non-GAAP Financial Measures
(All amounts in millions except
percentages and per share figures)
Changes in Comparable Sales – 13 Weeks
Ended October 31, 2021
Macy's, Inc.
Comparable Sales
vs.
13 Weeks Ended
October 31, 2020
Comparable Sales
vs.
13 Weeks Ended
November 2, 2019
Increase in comparable sales on an owned
basis (Note 7)
37.2
%
8.9
%
Comparable sales impact of departments
licensed to third parties (Note 8)
(1.6
%)
(0.2
%)
Increase in comparable sales on an owned
plus licensed basis
35.6
%
8.7
%
Macy's
Comparable Sales
vs.
13 Weeks Ended
October 31, 2020
Comparable Sales
vs.
13 Weeks Ended
November 2, 2019
Increase in comparable sales on an owned
basis (Note 7)
36.4
%
9.0
%
Comparable sales impact of departments
licensed to third parties (Note 8)
(1.3
%)
(0.6
%)
Increase in comparable sales on an owned
plus licensed basis
35.1
%
8.4
%
Bloomingdale's
Comparable Sales
vs.
13 Weeks Ended
October 31, 2020
Comparable Sales
vs.
13 Weeks Ended
November 2, 2019
Increase in comparable sales on an owned
basis (Note 7)
43.4
%
9.1
%
Comparable sales impact of departments
licensed to third parties (Note 8)
(4.9
%)
2.1
%
Increase in comparable sales on an owned
plus licensed basis
38.5
%
11.2
%
Bluemercury
Comparable Sales
vs.
13 Weeks Ended
October 31, 2020
Comparable Sales
vs.
13 Weeks Ended
November 2, 2019
Increase in comparable sales on an owned
basis (Note 7)
39.5
%
(2.2
%)
Comparable sales impact of departments
licensed to third parties (Note 8)
0.0
%
0.0
%
Increase in comparable sales on an owned
plus licensed basis
39.5
%
(2.2
%)
Changes in Comparable Sales – 39 Weeks
Ended October 31, 2021
Macy's, Inc.
Comparable Sales
vs.
39 Weeks Ended
October 31, 2020
Comparable Sales
vs.
39 Weeks Ended
November 2, 2019
Increase in comparable sales on an owned
basis (Note 7)
52.4
%
1.2
%
Comparable sales impact of departments
licensed to third parties (Note 8)
0.1
%
0.2
%
Increase in comparable sales on an owned
plus licensed basis
52.5
%
1.4
%
Notes:
(7)
Represents the period-to-period percentage
change in net sales from stores in operation during the 13 and 39
weeks ended October 30, 2021 and the 13 and 39 weeks ended October
31, 2020 and November 2, 2019, respectively. Such calculation
includes all digital sales and excludes commissions from
departments licensed to third parties. Stores impacted by a natural
disaster or undergoing significant expansion or shrinkage remain in
the comparable sales calculation unless the store, or material
portion of the store, is closed for a significant period of time.
No stores have been excluded as a result of the COVID-19 pandemic.
Definitions and calculations of comparable sales may differ among
companies in the retail industry.
(8)
Represents the impact of including the
sales of departments licensed to third parties occurring in stores
in operation throughout the year presented and the immediately
preceding year and all online sales in the calculation of
comparable sales. The company licenses third parties to operate
certain departments in its stores and online and receives
commissions from these third parties based on a percentage of their
net sales. In its financial statements prepared in conformity with
GAAP, the company includes these commissions (rather than sales of
the departments licensed to third parties) in its net sales. The
company does not, however, include any amounts in respect of
licensed department sales (or any commissions earned on such sales)
in its comparable sales in accordance with GAAP (i.e., on an owned
basis). The amounts of commissions earned on sales of departments
licensed to third parties are not material to its net sales for the
periods presented.
MACY’S, INC.
Important
Information Regarding Non-GAAP Financial Measures
(All amounts in millions except
percentages and per share figures)
Earnings (Loss)
before Interest, Taxes, Depreciation and Amortization, Net Income
(Loss) and Diluted Earnings (Loss) Per Share, Excluding Certain
Items
Non-GAAP financial measures, excluding
certain items below, are reconciled to the most directly comparable
GAAP measure as follows:
- EBITDA and adjusted EBITDA are reconciled to GAAP net income
(loss).
- Adjusted net income (loss) is reconciled to GAAP net income
(loss).
- Adjusted diluted earnings (loss) per share is reconciled to
GAAP diluted earnings (loss) per share.
EBITDA and Adjusted EBITDA
13 Weeks Ended
October 30, 2021
13 Weeks Ended
October 31, 2020
13 Weeks Ended
November 2, 2019
Net income (loss)
$
239
$
(91
)
$
2
Interest expense, net
53
80
48
Losses on early retirement of debt
185
—
—
Federal, state and local income tax
expense (benefit)
55
(126
)
(2
)
Depreciation and amortization
225
250
252
EBITDA
757
113
300
Impairment, restructuring and other
costs
—
20
13
Settlement charges
8
26
12
Adjusted EBITDA
$
765
$
159
$
325
39 Weeks Ended
October 30, 2021
39 Weeks Ended
October 31, 2020
39 Weeks Ended
November 2, 2019
Net income (loss)
$
687
$
(4,104
)
$
224
Interest expense, net
211
196
143
Losses on early retirement of debt
199
—
—
Financing costs
—
4
—
Federal, state and local income tax
expense (benefit)
197
(1,000
)
55
Depreciation and amortization
668
722
725
EBITDA
1,962
(4,182
)
1,147
Impairment, restructuring and other
costs
21
3,445
16
Settlement charges
90
65
12
Adjusted EBITDA
$
2,073
$
(672
)
$
1,175
MACY’S, INC.
Important
Information Regarding Non-GAAP Financial Measures
(All amounts in millions except
percentages and per share figures)
Adjusted Net Income (Loss) and Adjusted
Diluted Earnings (Loss) Per Share
13 Weeks Ended
October 30, 2021
13 Weeks Ended
October 31, 2020
13 Weeks Ended
November 2, 2019
Net
Income
Diluted
Earnings
Per Share
Net
Income (Loss)
Diluted
Earnings (Loss)
Per Share
Net
Income
Diluted
Earnings
Per Share
As reported
$
239
$
0.76
$
(91
)
$
(0.29
)
$
2
$
0.01
Impairment, restructuring and other
costs
—
—
20
0.06
13
0.04
Settlement charges
8
0.03
26
0.09
12
0.04
Losses on early retirement of debt
185
0.59
—
—
—
—
Income tax impact of certain items
identified above
(46
)
(0.15
)
(15
)
(0.05
)
(6
)
(0.02
)
As adjusted to exclude certain items
above
$
386
$
1.23
$
(60
)
$
(0.19
)
$
21
$
0.07
39 Weeks Ended
October 30, 2021
39 Weeks Ended
October 31, 2020
39 Weeks Ended
November 2, 2019
Net
Income
Diluted
Earnings
Per Share
Net
Income (Loss)
Diluted
Earnings (Loss)
Per Share
Net
Income
Diluted
Earnings
Per Share
As reported
$
687
$
2.17
$
(4,104
)
$
(13.20
)
$
224
$
0.72
Impairment, restructuring and other
costs
21
0.07
3,445
11.08
16
0.05
Settlement charges
90
0.28
65
0.21
12
0.04
Losses on early retirement of debt
199
0.63
—
—
—
—
Financing costs
—
—
4
0.01
—
—
Income tax impact of certain items
identified above
(73
)
(0.24
)
(351
)
(1.13
)
(6
)
(0.02
)
As adjusted to exclude certain items
above
$
924
$
2.91
$
(941
)
$
(3.03
)
$
246
$
0.79
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211118005496/en/
Media - Karina Frayter media@macys.com
Investors - Mike McGuire investors@macys.com
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