Executive Summary

• Macy’s fiscal 4Q18 revenues were $8.46 billion, down 2.5% year over year but beating the consensus estimate of $8.44 billion. The company reported 4Q18 adjusted EPS of $2.73, excluding special items, down 4.2% from the year ago period but beating the consensus estimate of $2.53.
• The company saw comparable sales growth of 0.4% on an owned basis, and 0.7% on an owned plus licensed basis. The company had its fifth consecutive quarter of positive comp sales and achieved a full year of positive comparable sales growth for the first time since 2014.
• The company announced a multiyear restructuring program to streamline management structure and fund reinvestment in the business.
• For FY19, management said the company anticipates comparable sales growth of flat to to 1% for owned stores and owned and licensed stores. The company expects net sales to be approximately flat, and diluted earnings per share to be $3.05-3.25.