Macy’s (M) Goldman Sachs Global Consumer and Retail Conference summary

Progress on strategic initiatives

• Reimagine program expanded to 200 stores, with 60% of the store base and 75% of Macy's store business now included, driving consistent sales and net promoter score improvements.

• Bloomingdale's and Bluemercury have achieved multiple quarters of double-digit and continuous growth, respectively, with Bloomingdale's positioned as a key growth engine.

• Store closures and supply chain optimization, including a new center in China Grove, have improved operational efficiency and delivery speed.

• Investment in people, merchandising, and store experience has led to immediate sales growth and improved profitability in Reimagine stores.

• Expansion of Reimagine pilots is planned for 2027, with ongoing iteration to tailor investments to local markets.

Financial performance and outlook

• Five consecutive quarters of growth at Macy's, six quarters of exceeding guidance, and two quarters of net sales growth.

• Raised full-year guidance for both top and bottom line, with EPS now at $2.15-$2.35, reflecting continued momentum.

• Gross margin improvement driven by assortment, Reimagine stores, and supply chain savings, with further gains expected in Q4.

• SG&A leverage achieved with low single-digit comp sales growth, supporting long-term profitable growth.

• Tariff refunds reinvested in marketing, Reimagine expansion, and selective price adjustments, aiming for balanced long-term growth.

Consumer trends and market environment

• Consumer remains resilient but selective, with strong engagement from loyal shoppers and heightened interest in new fashion for fall.

• Macro uncertainty persists, but multi-category business model allows flexibility to shift focus as trends evolve.

• GLP-1s and fashion shifts are driving new wardrobe demand, especially in higher-end segments and at Bloomingdale's.

• Traffic is healthy, AUR is up due to better brands and assortment, but conversion rates are challenged as prices rise.

• Inventory is well-positioned for fall, with growth aligned to sales and newness in assortment.