Macy's F1Q09 (Qtr End 5/2/09) Earnings Call Transcript

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2009-05-13 12:20:43.0

Tags: Macy's Inc., J.P. Morgan Chase & Co., Call Transcript, Quarter, Earnings, Morgan Stanley, Seeking Alpha, Macys Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will go first to Michelle Clark with Morgan Stanley.

Michelle Clark - Morgan Stanley

Good morning, Karen. The first question is you had mentioned that you had realized more than you expected in the first quarter from those announced expense saves of $290 million -- can you give us a sense of specifically what the dollar amount was in Q1 and what should we expect in terms of quarterly breakout go forward?

Karen M. Hoguet

I can’t give you that level of precision in terms of the first quarter but we would now expect to save more than the 250 plus the 40 than we had anticipated earlier.

Michelle Clark - Morgan Stanley

Okay, so it’s going to be something north than of the 290, then?

Karen M. Hoguet

Correct.

Michelle Clark - Morgan Stanley

On the full year? Okay, and then secondly, I had a question in terms of you mentioned 2Q comps looking similar to 1Q. Can you give us a sense of how much you benefited from stimulus in second quarter of last year?

Karen M. Hoguet

We didn’t think we benefited much at all last year.

Michelle Clark - Morgan Stanley

Okay. All right, great. Thanks, Karen.

Operator

We’ll go next to Charles Grom with J.P. Morgan.

Charles Grom - J.P. Morgan

Thanks. Good morning, Karen. Could you just clarify your comments on gross profit margins for the second quarter? Do you expect them to be up year over year or better than what they were in the first quarter?

Karen M. Hoguet

You know, we’re not being that precise in terms of guidance. It should not decline by as much as the first quarter. Whether it’s down a little, flat -- I don’t know, up a little. But I don’t expect it to be down as much as in the first quarter.

Charles Grom - J.P. Morgan

Okay, and just to that point, your compare against a couple hundred basis points harder sequentially, is there something that’s different in 2Q than in 1Q that would help that out? I’m just trying to understand why it would be a little bit better.

Karen M. Hoguet

You know, I can’t think of anything off-hand, Chuck, but I’ll look at it later and let you know.

Charles Grom - J.P. Morgan

Okay, and then just the second question, just trends on -- in the New York City area with Bloomingdales and Harold Square, any sort of improvement as the quarter progressed relative to the fourth quarter?

 

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