Macy’s, Inc. Reports Third Quarter 2020 Results

NEW YORK--(BUSINESS WIRE)-- Macy’s, Inc. (NYSE: M) today reported results for the third quarter of 2020.

“Macy’s, Inc. third quarter results reflect solid performance across all three brands – Macy’s, Bloomingdale’s and Bluemercury. Our results were driven by disciplined cost management, strong execution by our colleagues and an early start to the holiday shopping season,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Customers shopped our brands across all channels in the third quarter and responded well to our expanded fulfillment offerings, such as curbside, store pickup and same-day delivery. Our digital business delivered strong growth and sales in our stores continued to recover. Customers have shifted their spending to casual apparel and categories they can enjoy as they stay at home. Several of these categories, including home furnishings, jewelry and fragrance, have generated double-digit sales growth compared to last year.”

“Looking to Holiday 2020, we know this year is different. We are committed to bringing the joy of the season to America as we do every year. From next week’s Thanksgiving Day Parade to reimagined family gatherings, we will help our customers and their families celebrate in style. We have the right gifting assortment with newness from value to luxury, and our expanded fulfillment options allow customers to shop safely and conveniently, in store or online,” continued Gennette. “We continue to watch the resurgence of COVID-19 and its potential impact on our business. Our teams are executing well and have shown the flexibility and agility to adjust plans and provide a great omnichannel experience to our customers.”

Financial Highlights

 

Third Quarter

Year to Date

(All amounts in millions, except per share figures)

2020

2019

2020

2019

Net sales

$

3,990

 

$

5,173

$

10,566

 

$

16,223

 

 

 

Net income (loss) (a) (b)

$

(91

)

$

2

$

(4,104

)

$

224

Earnings (loss) before interest, taxes, depreciation and amortization (a) (b)

$

113

 

$

300

$

(4,182

)

$

1,147

Diluted earnings (loss) per share (a) (b)

$

(0.29

)

$

0.01

$

(13.20

)

$

0.72

 

 

 

Adjusted Net income (loss) (b)

$

(60

)

$

21

$

(941

)

$

246

Adjusted Earnings (loss) before interest, taxes, depreciation and amortization (b)

$

159

 

$

325

$

(672

)

$

1,175

Adjusted Diluted earnings (loss) per share (b)

$

(0.19

)

$

0.07

$

(3.03

)

$

0.79

(a): The results for the 39 weeks ended October 31, 2020 include the pre-tax impact of the non-cash goodwill and long-lived asset impairment charges of $3.1 billion and $83 million, respectively, as well as the related tax impact.

(b): The results for the 13 and 39 weeks ended October 31, 2020 include benefits of tax law changes resulting from the Coronavirus Aid, Relief and Economic Security ("CARES") Act.

Note: Adjusted metrics reflect the exclusion of certain items from the respective financial measures. Please see the final pages of this news release for important information regarding the nature of such excluded amounts and calculation of the company’s non-GAAP financial measures.

Third Quarter Highlights

  • Positive EBITDA one quarter sooner than expected.
  • Strong liquidity position with approximately $1.6 billion in cash and approximately $3 billion of untapped capacity in the company’s asset-based credit facility.
  • Digital sales grew 27% over third quarter 2019. Digital sales penetrated at 38% of total owned comparable sales.
  • Comparable sales down 21.0% on an owned basis and down 20.2% on an owned plus licensed basis, due to continued stores recovery and continued growth of digital business.
  • Inventory down 29% from third quarter 2019. The company exited the quarter in a clean inventory position.
  • Gross margin of 35.6% compared to 23.6% in the second quarter of 2020, an improvement of approximately 12 percentage points. The improvement was driven by disciplined inventory management, better sell through of both full-price and clearance merchandise and lower clearance markdowns.
  • Selling, general and administrative (“SG&A”) expense of $1.7 billion, down $476 million from third quarter 2019, illustrating efficient expense management and improved colleague productivity in stores.
  • Diluted loss per share of $(0.29) and Adjusted diluted loss per share of $(0.19).

2020 Guidance

Macy’s, Inc. previously withdrew its 2020 earnings guidance due to ongoing uncertainty as a result of the COVID-19 pandemic. The company is providing limited guidance for 2020, which can be found on the company's website at www.macysinc.com

Conference Call and Webcasts

A webcast of Macy's, Inc.’s call with analysts and investors to report its third quarter 2020 sales and earnings will be held today (November 19, 2020) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call in on 1-888-394-8218 passcode 9984154. A replay of the conference call and slides can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom.

Macy's, Inc. is scheduled to present at the Morgan Stanley Virtual Global Consumer & Retail Conference at 8:00 a.m. ET on Tuesday, December 1, 2020. Media and investors may access a live audio webcast of the presentation at www.macysinc.com on December 1, 2020. A replay of the webcast will be available on the company’s website.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.

About Macy’s, Inc.

Macy’s, Inc. (NYSE: M) is one of the nation’s premier omni-channel fashion retailers. The company comprises three retail brands, Macy’s, Bloomingdale’s and Bluemercury. Macy’s, Inc. is headquartered in New York, New York. For more information, please visit www.macysinc.com.

Forward-Looking Statements

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including the effects of the novel coronavirus (COVID-19) on Macy's customer demand and supply chain, as well as its consolidated results of operation, financial position and cash flows, Macy’s ability to successfully implement its Polaris strategy and restructuring, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, possible systems failures and/or security breaches, the potential for the incurrence of charges in connection with the impairment of intangible assets, including goodwill, Macy’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended February 1, 2020 and Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2020. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MACY’S, INC.
Consolidated Statements of Operations (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

$

 

% to
Net sales

 

$

 

% to
Net sales

 

 

 

 

 

 

 

 

 

Net sales

 

$

3,990

 

 

 

 

$

5,173

 

 

 

 

 

 

 

 

 

 

 

 

Credit card revenues, net

 

195

 

 

4.9

%

 

183

 

 

3.5

%

 

 

 

 

 

 

 

 

 

Cost of sales

 

(2,569

)

 

(64.4

%)

 

(3,106

)

 

(60.0

%)

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

(1,726

)

 

(43.3

%)

 

(2,202

)

 

(42.6

%)

 

 

 

 

 

 

 

 

 

Gains on sale of real estate

 

3

 

 

0.1

%

 

17

 

 

0.3

%

 

 

 

 

 

 

 

 

 

Restructuring, impairment and other costs

 

(20

)

 

(0.5

%)

 

(13

)

 

(0.2

%)

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(127

)

 

(3.2

%)

 

52

 

 

1.0

%

 

 

 

 

 

 

 

 

 

Benefit plan income, net

 

16

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

(26

)

 

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(80

)

 

 

 

(48

)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(217

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal, state and local income tax benefit (Note 3)

 

126

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(91

)

 

 

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(0.29

)

 

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

(0.29

)

 

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares:

 

 

 

 

 

 

 

 

Basic

 

311.2

 

 

 

 

309.9

 

 

 

Diluted

 

311.2

 

 

 

 

311.0

 

 

 

 

 

 

 

 

 

 

 

 

End of period common shares outstanding

 

310.3

 

 

 

 

309.0

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Financial Measures:

 

 

 

 

 

 

 

 

Gross Margin (Note 4)

 

$

1,421

 

 

35.6

%

 

$

2,067

 

 

40.0

%

Depreciation and amortization expense

 

$

250

 

 

 

 

$

252

 

 

 

MACY’S, INC.
Consolidated Statements of Operations (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)

 

 

 

39 Weeks Ended

 

39 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

$

 

% to
Net sales

 

$

 

% to
Net sales

 

 

 

 

 

 

 

 

 

Net sales

 

$

10,566

 

 

 

 

$

16,223

 

 

 

 

 

 

 

 

 

 

 

 

Credit card revenues, net

 

494

 

 

4.7

%

 

531

 

 

3.3

%

 

 

 

 

 

 

 

 

 

Cost of sales

 

(7,788

)

 

(73.7

%)

 

(9,905

)

 

(61.1

%)

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

(4,723

)

 

(44.7

%)

 

(6,489

)

 

(40.0

%)

 

 

 

 

 

 

 

 

 

Gains on sale of real estate

 

20

 

 

0.2

%

 

67

 

 

0.4

%

 

 

 

 

 

 

 

 

 

Impairment, restructuring and other costs (Note 2)

 

(3,445

)

 

(32.6

%)

 

(16

)

 

(0.1

%)

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(4,876

)

 

(46.1

%)

 

411

 

 

2.5

%

 

 

 

 

 

 

 

 

 

Benefit plan income, net

 

37

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

(65

)

 

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(196

)

 

 

 

(143

)

 

 

 

 

 

 

 

 

 

 

 

Financing costs

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(5,104

)

 

 

 

279

 

 

 

 

 

 

 

 

 

 

 

 

Federal, state and local income tax benefit (expense) (Note 3)

 

1,000

 

 

 

 

(55

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(4,104

)

 

 

 

$

224

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(13.20

)

 

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

(13.20

)

 

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares:

 

 

 

 

 

 

 

 

Basic

 

311.0

 

 

 

 

309.6

 

 

 

Diluted

 

311.0

 

 

 

 

311.3

 

 

 

 

 

 

 

 

 

 

 

 

End of period common shares outstanding

 

310.3

 

 

 

 

309.0

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Financial Measures:

 

 

 

 

 

 

 

 

Gross Margin (Note 4)

 

$

2,778

 

 

26.3

%

 

$

6,318

 

 

38.9

%

Depreciation and amortization expense

 

$

722

 

 

 

 

$

725

 

 

 

MACY’S, INC.

Consolidated Balance Sheets (Unaudited) (Note 1)
(millions)

 

 

 

October 31, 2020

 

February 1, 2020

 

November 2, 2019

ASSETS:

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,551

 

$

685

 

$

301

Receivables

 

185

 

409

 

175

Merchandise inventories

 

5,144

 

5,188

 

7,256

Prepaid expenses and other current assets

 

477

 

528

 

569

Total Current Assets

 

7,357

 

6,810

 

8,301

 

 

 

 

 

 

 

Property and Equipment – net

 

6,122

 

6,633

 

6,558

Right of Use Assets

 

3,028

 

2,668

 

2,596

Goodwill

 

828

 

3,908

 

3,908

Other Intangible Assets – net

 

437

 

439

 

440

Other Assets

 

1,442

 

714

 

744

 

 

 

 

 

 

 

Total Assets

 

$

19,214

 

$

21,172

 

$

22,547

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Short-term debt

 

$

536

 

$

539

 

$

6

Merchandise accounts payable

 

3,267

 

1,682

 

3,427

Accounts payable and accrued liabilities

 

2,848

 

3,448

 

3,046

Income taxes

 

 

81

 

Total Current Liabilities

 

6,651

 

5,750

 

6,479

 

 

 

 

 

 

 

Long-Term Debt

 

4,852

 

3,621

 

4,677

Long-Term Lease Liabilities

 

3,266

 

2,918

 

2,819

Deferred Income Taxes

 

917

 

1,169

 

1,200

Other Liabilities

 

1,285

 

1,337

 

1,315

Shareholders' Equity

 

2,243

 

6,377

 

6,057

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

19,214

 

$

21,172

 

$

22,547

MACY’S, INC.
Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5)
(millions)

 

 

 

39 Weeks Ended

 

39 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

(4,104

)

 

$

224

 

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

 

 

 

 

Impairment, restructuring and other costs

 

3,445

 

 

16

 

Settlement charges

 

65

 

 

12

 

Depreciation and amortization

 

722

 

 

725

 

Benefit plans

 

36

 

 

23

 

Stock-based compensation expense

 

21

 

 

40

 

Gains on sale of real estate

 

(20

)

 

(67

)

Deferred income taxes

 

(270

)

 

25

 

Amortization of financing costs and premium on acquired debt

 

11

 

 

1

 

Changes in assets and liabilities:

 

 

 

 

Decrease in receivables

 

223

 

 

224

 

(Increase) decrease in merchandise inventories

 

34

 

 

(1,993

)

Decrease in prepaid expenses and other current assets

 

29

 

 

13

 

Increase in merchandise accounts payable

 

1,612

 

 

1,648

 

Decrease in accounts payable and accrued liabilities

 

(598

)

 

(470

)

Decrease in current income taxes

 

(818

)

 

(168

)

Change in other assets and liabilities

 

(144

)

 

(81

)

Net cash provided by operating activities

 

244

 

 

172

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchase of property and equipment

 

(290

)

 

(623

)

Capitalized software

 

(96

)

 

(189

)

Disposition of property and equipment

 

39

 

 

73

 

Other, net

 

33

 

 

10

 

Net cash used by investing activities

 

(314

)

 

(729

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Debt issued

 

2,780

 

 

 

Debt issuance costs

 

(102

)

 

(3

)

Debt repaid

 

(1,508

)

 

(42

)

Dividends paid

 

(117

)

 

(349

)

Increase (decrease) in outstanding checks

 

(90

)

 

49

 

Acquisition of treasury stock

 

 

 

(1

)

Issuance of common stock

 

 

 

6

 

Net cash provided (used) by financing activities

 

963

 

 

(340

)

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

893

 

 

(897

)

Cash, cash equivalents and restricted cash beginning of period

 

731

 

 

1,248

 

 

 

 

 

 

Cash, cash equivalents and restricted cash end of period

 

$

1,624

 

 

$

351

 

MACY’S, INC.

Consolidated Financial Statements (Unaudited)

Notes:

 

 

 

(1)

As a result of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 31, 2020 and November 2, 2019 are not necessarily indicative of such results for the fiscal year. Certain reclassifications were made to the prior period's amounts to conform with the classifications of such amounts in the most recent period.

 

(2)

The 39 weeks ended October 31, 2020 also include non-cash impairment charges totaling $3.2 billion, which consist of a $3.1 billion goodwill impairment charge and an $83 million impairment charge on long-lived tangible and right of use assets.

 

(3)

The income tax benefits of $126 million and $1.0 billion, or 58.1% and 19.6% of pretax loss, for the 13 and 39 weeks ended October 31, 2020 reflect a different projected benefit rate as compared to the company's federal income tax statutory rate of 21% due to the carryback of net operating losses as permitted under the CARES Act. For the 39 weeks ended October 31, 2020, the benefit of the available carryback of net operating losses was offset by the impact of the non-tax deductible component of the goodwill impairment charge and additional income tax expense associated with the deferred tax remeasurement recognized during the first quarter of 2020.

 

(4)

Gross margin is defined as net sales less cost of sales.

 

(5)

Restricted cash of $73 million and $50 million have been included with cash and cash equivalents for the 39 weeks ended October 31, 2020 and November 2, 2019, respectively.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures provide users of the company's financial information with additional useful information in evaluating operating performance. Management believes that providing supplemental changes in comparable sales on an owned plus licensed basis and changes in comparable sales on an owned plus licensed basis, which includes adjusting for growth in comparable sales of departments licensed to third parties, assists in evaluating the company's ability to generate sales growth, whether through owned businesses or departments licensed to third parties, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income (loss) and diluted earnings (loss) per share that are not associated with the company’s core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company's ability to generate earnings and to more readily compare these metrics between past and future periods.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages and per share figures)

 

Changes in Comparable Sales

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

October 31, 2020

 

October 31, 2020

 

 

 

 

 

Decrease in comparable sales on an owned basis (Note 6)

 

(21.0

)%

 

(33.9

)%

Comparable sales growth impact of departments licensed to third parties (Note 7)

 

0.8

%

 

0.1

%

Decrease in comparable sales on an owned plus licensed basis

 

(20.2

)%

 

(33.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

November 2, 2019

 

November 2, 2019

 

 

 

 

 

Decrease in comparable sales on an owned basis (Note 6)

 

(3.9

)%

 

(1.0

)%

Comparable sales growth impact of departments licensed to third parties (Note 7)

 

0.4

%

 

0.2

%

Decrease in comparable sales on an owned plus licensed basis

 

(3.5

)%

 

(0.8

)%

Notes:

 

 

 

(6)

Represents the period-to-period percentage change in net sales from stores in operation throughout the year presented and the immediately preceding year and all online sales, excluding commissions from departments licensed to third parties. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. No stores have been excluded as a result of the COVID-19 pandemic. Definitions and calculations of comparable sales may differ among companies in the retail industry.

 

 

(7)

Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales in the calculation of comparable sales. The company licenses third parties to operate certain departments in its stores and online and receives commissions from these third parties based on a percentage of their net sales. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties) in its net sales. The company does not, however, include any amounts in respect of licensed department sales (or any commissions earned on such sales) in its comparable sales in accordance with GAAP (i.e., on an owned basis). The amounts of commissions earned on sales of departments licensed to third parties are not material to its net sales for the periods presented.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages and per share figures)

Earnings (Loss) before Interest, Taxes, Depreciation and Amortization, Net Income (Loss) and Diluted Earnings (Loss) Per Share, Excluding Certain Items

Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:

  • EBITDA and adjusted EBITDA are reconciled to GAAP net income (loss).
  • Adjusted net income (loss) is reconciled to GAAP net income (loss).
  • Adjusted diluted earnings (loss) per share is reconciled to GAAP diluted earnings (loss) per share.

EBITDA and Adjusted EBITDA

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

 

 

 

Net income (loss)

 

$

(91

)

 

$

2

 

Interest expense, net

 

80

 

 

48

 

Federal, state and local income tax benefit

 

(126

)

 

(2

)

Depreciation and amortization

 

250

 

 

252

 

EBITDA

 

113

 

 

300

 

Restructuring, impairment and other costs

 

20

 

 

13

 

Settlement charges

 

26

 

 

12

 

Adjusted EBITDA

 

$

159

 

 

$

325

 

 

 

39 Weeks Ended

 

39 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

 

 

 

Net income (loss)

 

$

(4,104

)

 

$

224

Interest expense, net

 

196

 

 

143

Financing costs

 

4

 

 

Federal, state and local income tax expense (benefit)

 

(1,000

)

 

55

Depreciation and amortization

 

722

 

 

725

EBITDA

 

(4,182

)

 

1,147

Impairment, restructuring and other costs

 

3,445

 

 

16

Settlement charges

 

65

 

 

12

Adjusted EBITDA

 

$

(672

)

 

$

1,175

MACY’S, INC.
Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages and per share figures)

 

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

Diluted Earnings (Loss) Per Share

 

Net Income

 

Diluted Earnings Per Share

As reported

 

$

(91

)

 

$

(0.29

)

 

$

2

 

 

$

0.01

 

Restructuring, impairment and other costs

 

20

 

 

0.06

 

 

13

 

 

0.04

 

Settlement charges

 

26

 

 

0.09

 

 

12

 

 

0.04

 

Income tax impact of certain items identified above

 

(15

)

 

(0.05

)

 

(6

)

 

(0.02

)

As adjusted

 

$

(60

)

 

$

(0.19

)

 

$

21

 

 

$

0.07

 

 

 

39 Weeks Ended

 

39 Weeks Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

Diluted Earnings (Loss) Per Share

 

Net Income

 

Diluted Earnings Per Share

As reported

 

$

(4,104

)

 

$

(13.20

)

 

$

224

 

 

$

0.72

 

Impairment, restructuring and other costs

 

3,445

 

 

11.08

 

 

16

 

 

0.05

 

Settlement charges

 

65

 

 

0.21

 

 

12

 

 

0.04

 

Financing costs

 

4

 

 

0.01

 

 

 

 

 

Income tax impact of certain items identified above

 

(351

)

 

(1.13

)

 

(6

)

 

(0.02

)

As adjusted

 

$

(941

)

 

$

(3.03

)

 

$

246

 

 

$

0.79

 

 

Media - Blair Rosenberg
media@macys.com

Investors - Mike McGuire
investors@macys.com

Source: Macy’s, Inc.