Janet Joseph Kloppenberg

Janet Joseph Kloppenberg asked about the opportunities for Macy's and Bloomingdale's amidst market turbulence, the uptrend in the contemporary category versus weakness in active, and the drivers of customer appetite for fashion apparel, including brand innovation and TikTok marketing.

Answer

Chairman and CEO Tony Spring reiterated confidence in Macy's and Bloomingdale's assortments, team quality, and marketing, seeing opportunities to gain market share. He confirmed softness in the active category but noted strong performance in dresses, career sportswear, contemporary collections, and denim. Spring attributed the increased customer appetite for fashion apparel to a combination of brands presenting better products, social media influence (like TikTok), and improved visual merchandising in stores that inspire customers to engage with trends.

Janet Joseph Kloppenburg asked about opportunities for Macy's and Bloomingdale's in the contemporary category, noting a potential uptrend. She also inquired if the customer's appetite for fashion apparel is driven by better products from brands or by social media marketing like TikTok.

Answer

Chairman and CEO Tony Spring reiterated softness in the active category but highlighted consumer investment in dresses, career sportswear, contemporary collections, and denim. He expressed confidence in assortments, team quality, marketing, and the opportunity for all three nameplates to gain market share, citing positive Net Promoter Scores. For the follow-up, he attributed the appetite for fashion apparel to 'all of the above,' including social media's impact on trends, brands presenting better products, and improved visual merchandising in stores. COO and CFO Tom Edwards added that a strong balance sheet, robust cash flow, and no debt maturities position them as a strong partner, enabling investment and shareholder returns.