Macy's F2Q09 (Qtr End 8/1/09) Earnings Call Transcript

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2009-08-12 11:38:14.0

Tags: Macy's Inc., J.P. Morgan Chase & Co., Barclays Plc., Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Macys Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We’ll take our first question from Robert Drbul with Barclays Capital.

Robert Drbul - Barclays Capital

Good morning, Karen. I just have a couple of quick questions -- first, can you elaborate a little bit more on Bloomingdale’s and maybe some of the New York City market and some tourism markets that are impacted and sort of how they are playing out within your sales trends?

Karen M. Hoguet

Yeah, I mean, in terms of Bloomingdale’s, their performance has been less favorable than Macy’s but they did improve in the second quarter relative to the first quarter, and they continue to perform very well versus the other upscale retailers that you all track.

In terms of the tourist markets in New York, they have done a little bit better in the second quarter, and particularly Harold Square has had a great trend in the last couple of weeks.

Robert Drbul - Barclays Capital

Okay, great. And when you look at the sales expectations for the rest of the year, is it fair to say that when you look at the two-year run-rate, you are looking for over 100 basis point improvement in the back half -- is that how you are looking at the business in terms of the comparisons versus actually the terms that we are seeing right now?

Karen M. Hoguet

On a two-year basis, the spring season was down 5.8%, so at minus 5% to minus 6% on a two-year basis, it would be minus 5.8% to minus 6% rate.

Robert Drbul - Barclays Capital

Got it.

Karen M. Hoguet

So with the better end of our guidance, it would be flat with this spring and at the lower end of our guidance, it would be slightly down on a two-year basis.

Robert Drbul - Barclays Capital

Okay, great. Thank you very much, Karen. Good luck.

Operator

Our next question comes from Charles Grom with J.P. Morgan.

Charles Grom - J.P. Morgan

Good morning, Karen. Can you just quantify that ad shift that went into the fourth quarter out of 2Q and also remind us what the benefit was from Hurricane Ike -- I am sure I can go into your K, but --

Karen M. Hoguet

Actually, we are not disclosing any of those numbers. It’s really not material in total but it does impact the SG&A comparisons.

Charles Grom - J.P. Morgan

 

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