Macy's, Inc. (NYSE:M) Q3 2018 Earnings Conference Call - Final Transcript

Nov 14, 2018 • 09:30 am ET


Macy's, Inc. (NYSE:M) Q3 2018 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Macy's Incorporated Third Quarter 2018 Earnings Call. Today's hour long conference will end promptly at 10:30 Eastern Time and is being recorded. In the interest of time, we ask that you please limit yourself to one question. I would now like to turn the call over to Monica Koehler, VP, IR and Finance. Please go ahead.

Monica Koehler

Great, thank you. Good morning and welcome to the Macy's, Inc. conference call scheduled to discuss our third quarter earnings and outlook for the remainder of the year. Joining us on the call today are Jeff Gennette, Chairman and CEO; and Paula Price, CFO. Any transcription or other reproduction of the statements made on this call without our consent is prohibited. A replay of the call will be available on our website, beginning approximately 2 hours after the call concludes.

(Forward-Looking Cautionary Statements)

In discussing the results of our operations, we will be providing adjusted earnings before interest, taxes, depreciation and amortization, net income and diluted earnings per share amounts that exclude the impact of restructuring and other costs and settlement charges associated with our defined benefit plans. You can find additional important information regarding these non-GAAP financial measures as well as other views in our earnings release and during this call on the Investors section of our website. We look forward to taking your questions after our prepared remarks.

With that, I'll turn the call over to Jeff.

Jeffrey Gennette

So, thank you, Monica. Good morning, everybody and thanks for joining the call. As you saw in our press release this morning, Macy's delivered a strong third quarter with comparable sales up 3.3% on an owned plus licensed basis and earnings of $0.27 per share. We saw strong results across the Macy's Inc. business with Macy's, Bloomingdale's and Bluemercury all performing well in the quarter, which contributed to our solid top line growth. Based on the third quarter results, we are raising annual earnings guidance by $0.15 and adjusting the range of sales guidance. Paula will give you more details on the quarter and our remarks -- and our outlook in her remarks.

So Macy's recipe for success is e-commerce, healthy stores and a great mobile experience that ties it all together. It is our competitive moat. Our e-commerce business just completed another consecutive quarter of double-digit growth, driven by continued improvement to our online offering and experience. We invested early in mobile and our mobile app just keeps getting better. We view the Macy's app as our customers' indispensable shopping companion and increasingly it's becoming a channel for transactions as well. This year, we will hit $1 billion in mobile sales. The growth of our digital business goes hand-in-hand with the growth of our brick and mortar business. We've seen the trend improvement in our stores beginning a year ago and we've seen steady quarter-to-quarter progress throughout the year. This is important because healthy brick and mortar -- healthy brick and mortar business is part of our strategy