Macy's, Inc. (NYSE:M) Q2 2020 Earnings Conference Call - Final Transcript
Sep 02, 2020 • 08:00 am ET
[Operator Instructions] We'll take our first question from Matthew Boss from J.P. Morgan. Please go ahead. Mr. Boss, if you're on mute, please unmute your line.
Yeah. Can you hear me?
Yeah, we can hear you, Matt.
Okay, great. So, Jeff, can you speak to the interplay that you're expecting between the negative 40% brick and mortar store comps and the moderation in e-commerce that you saw exiting the second quarter as we think about the back half of the year? And just anything materially different that you've seen so far in August relative to the trends by channel that you saw in July?
Yeah. So, what I'd say, Matt, is that we do expect that the trend line that we have in stores that we experienced in the month of July that, give or take, we can pull that forward. And that's a conservative approach, but that's where we have planned it, and August was in those expectations. And in digital, as we described on our last call, we do expect that to moderate. It's still going to be significant, but it's more in the line of what we experienced in the month of July. So, that is -- that kind of culminates between kind of the way we're looking at the back half of the year, the down low to mid-20s for the full enterprise of Macy's Inc.
Now, we're seeing lots of things in between that. When you look at the month of August, some things were better, some things were worse, but in -- as an overall characteristic, in line with what our expectations were. We've all talked about what happened in the back to school time frame, what happened with the cessation of the unemployment benefits, what happened with some of the resurgence. But there's also some good tailwinds that we've also seen. So, what we've seen is that now that we've got our inventory in parity with the demand that we're expecting in the back half of the year, seeing some really good regular price sell-throughs in categories from off-price, all the way to luxury.
Our freight is moving very well right now. We've got good demand, and we're getting good response and receipts coming into support that demand. So -- and we've got -- we feel very good about the gift assortments that are coming for the fourth quarter. So, we are taking a conservative approach to the back of the year. Our kind of notice to all of you about what we said at the end of the first quarter really holds for this call as well. We're taking a conservative approach. We have an upside scenario. We have a downside scenario. But we're staying really closely to it. We're basically tracking where the customer is going and we've got the receipts there to support it.
Great. And then just a follow-up, on the Polaris strategy and maybe thinking relative to the initial plan that you laid out at the Analyst Day a