Executive Summary

• Macy’s reported 4Q16 total revenues of $8.5 billion, down 4% year over year and missing the consensus estimate of $8.6 billion. EPS was $2.02, beating the consensus estimate of $1.95.
• Comparable sales declined by 2.7% for the quarter. On an owned-plus-licensed basis, comps were down 2.1% for the quarter. For the full year, comps declined by 2.9% on an owned-plus-licensed basis.
• In FY17, the company expects comp sales to decline by 2.2%–2.3% and comps on an owned-plus-licensed basis to decline by 2%–3%. EPS is expected to be $2.90–$3.15 versus the consensus estimate of $3.17.