Macy's, Inc. (NYSE:M) Q2 2020 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 08:00 am ET

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Macy's, Inc. (NYSE:M) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Jeff Gennette

think this year is going to be different. And so we have lots of opportunities with values. And so, look, we have certainly seen through that our customers always respond to great values they respond to great brands, a great values and so we know how to do that.

We -- the kind of trial run for us is always kind of Black Friday in July. So we're always using that as kind of dress rehearsal to look at what customers respond to and try and put on the holiday factor and sell-through on top of that. So we've looked at the entire promotional calendar really from before Halloween all the way through the month of November through Black Friday and obviously Cyber Monday, end of the last 10 days before Christmas.

So we're anticipating that there's going to be customer concern for health and safety during those compressed periods Black Friday and the 10 days before Christmas. And so looking at what that demand might look like, what then happens to the digital demand and what happens within sales that you're going to need to spread differently and what is the offering in the events that are going to help you do that.

And also hearing our competitors also talk about that. And so I think that it's definitely out there and the opportunities for consumers to hear all -- the competitive cycle, talking about the opportunities to get great gifts at great values in time to have it shipped comfortably and safely by the time of either Hanukkah or Christmas and there's other holidays, but those are the two main ones.

So I think this year is going to be different but the base of your question is in the past, historically, we have not seen the opportunity to move demand earlier than Thanksgiving for a holiday purchase. But I believe this year is the year that it will happen.

Analyst
Jay Sole

Got it. It's sort of like some of the efforts that you guys contemplated in the guidance that you've given for gross margin in the back half.

Executive
Jeff Gennette

Correct, it's all baked into that. So I feel comfortable, we're taking a conservative stance on that. And like I believe we are -- we're in the ballpark right now.

Analyst
Jay Sole

Got it. Thanks so much.

Executive
Jeff Gennette

You bet, Jay.

Operator
Operator

Thank you. It appears there are no further questions at this time, Mr. McGuire, I'd like to turn the conference back to you for any additional or closing remarks.

Executive
Jeff Gennette

I just want to say to everybody, thank you for your attention as we went through a long description of how we're -- what we're up to. And appreciate everybody's interest in the Macy's and Bloomingdale's and Bluemercury brands. Everybody have a great day.

Operator
Operator

[Operator Closing Remarks]