Executive Summary

• Macy’s reported 4Q17 revenues of $8.67 billion, up 1.8% and roughly in line with the consensus estimate. Adjusted EPS was $2.82, beating the $2.67 consensus estimate and up from $2.02 in the year-ago quarter.
• Comp sales were up 1.3% on an owned basis versus the 0.4% consensus estimate and were up 1.4% on an owned-plus-licensed basis.
• In FY18, Macy’s expects comps on both an owned and owned-plus-licensed basis to be flat to up 1%. The company expects total sales to decline by 0.5%–2% for the year and adjusted EPS to be $3.55–$3.75, versus the consensus estimate of $3.18.