Macy’s 3Q16 Earnings Call Notes

Macy’s (M) Q3 2016 Results

Karen M. Hoguet – Macy’s, Inc.

Fashion watch trend did improve

“It’s actually was encouraging that our fashion watch trend did improve, as our expanded tech watch assortment hit our stores and websites late in the quarter, including products from brands like Apple and Michael Kors. The category trends were generally similar at both Macy’s and Bloomingdale’s.”

Worse than expected credit performance one reason for weak SG&A

“we actually had said early in the year that we expected it to be flattish, not down. I think now the year will be slightly up. But, again, if you focus on the annual, the increase feels reasonable, and that’s the way I would think about it, if I were you. The credit performance has been worse than we had expected, so that’s one piece of the reason for the increase”

Our buyers and store base are what will allow us to compete with Amazon

” I do think that our organization and, as you said, our merchants be able to curate the market, find the right product really is a competitive advantage relative to Amazon. And when you combine that with the really terrific store organization that we have, I do believe for fashion, customers still love going into the stores, trying things on. Even if they end up buying online from our apps, they still experience the store. And so I think both of those will allow us to always compete effectively against an Amazon; doesn’t mean that an Amazon won’t do a lot of business. I’m not saying that.”