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BRIEF-Macy's CFO - Expect improvement in trend to start in Q2
May 11, 2017 / 3:36 PM / 7 months ago

BRIEF-Macy's CFO - Expect improvement in trend to start in Q2

May 11 (Reuters) - Macy’s Inc

* CFO on conf call- international tourists sales declined at about the same rate as Q1 comp sales

* CFO - weaker businesses in Q1 included handbags, fashion jewelry and watches, housewares

* CFO - have 26 backstage stores open within macy’s stores and are adding 19 more this year

* CFO - Q1 gross margin decline was due to ending 2016 with inventory higher than anticipated, weak february sales and margin pressures in a few businesses

* CFO - gross margin declines in beauty business due to increased promotional activity

* CFO - making good progress in selling off properties that were previously closed

* CFO - there is a dedicated Brookfield team working with our team on feasibility analysis and redevelopment activities related to about 50 real estate assets

* CFO - had expected Q1 to be weakest quarter of year, benefits from closed stores were not expected to help until going-out-of-business sales were completed until late march

* CFO - expect improvement in trend to start in q2

* CFO - adding or expanding furniture and mattresses in approximately 60 stores

* CFO - “we’ve concluded that our current model is too heavily weighted to promotional marketing”

* CFO - strategizing to improve our ‘buy online pickup in store’ experience

* CEO- working on bringing additional traffic into stores in close partnership with our mall developers

* CFO - “we will forever be a promotional department store,” new marketing stratgey won’t reduce promotions but will reallocate how we spend and how we talk to the customer

* CFO - expect to continue to reduce our debt level this year, “ debt reduction is an important priority for this year” Further company coverage:

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