|Company Name:||Macy's Inc.|
|Event Title:||Q2 2013 Earnings Call Transcript|
|Event Time:||10:30 AM ET|
Good morning and welcome to Macy's second quarter Earnings Release Conference Call. Today's call is being recorded.
I would now like to turn the call over to your host Karen Hoguet. Please go ahead.
Karen M. Hoguet
Chief Financial Officer
Thanks, Lorie. Good morning and welcome to the Macy's conference call scheduled to discuss our second quarter earnings .
Any transcription or other reproduction of the statements made in this call without our consent is prohibited. A replay of the call will be available on our website www.macysinc.com beginning approximately two hours after the call concludes.
Please refer to the Investor Relations section of our website for discussion and reconciliations of any non-GAAP financial measures discussed this morning. Keep in mind that all forward-looking statements are subject to risks and uncertainties that could cause the company's actual results to differ materially from the expectations and assumptions mentioned today due to a variety of factors that affect the company including the risks specified in the company's most recently filed Form 10-K.
While we are pleased to have reported a 7.5% increase in earnings per share for the second quarter and a 16.5% increase to the first half of the year, we were disappointed with our sales performance in the second quarter. Remember that we had originally planned sales growth 200 to 300 basis points lower in the second quarter than in the first quarter due to the shift in the timing of the Friends and Family event at Macy's. But the trend did end up worse than what we had expected. We believe that much of our weakness is due to the health of the consumer and the fact that consumers seem to be choosing to make purchases in non-department store categories such as cars, housing and home improvement.
Since we're the first to report sales and earnings , it is frankly hard to judge how much of a role the economic conditions play, but we think it was significant. We also believe however that we could have produced the better sales performance and we are discussing what we could have done differently both of that we can improved the trend in the third quarter and also so that we can have a great second quarter next year.
I'll address as more as we go through the call but the good news is that we believe we have reacted appropriately and our fall plans now reflect increased marketing as well as greater recognition that in today's environment value matters a great deal. So we are turning up the volume on that message for the remainder of 2013.
We believe that the changes we have made will result in improved sales performance this fall.
And while it has only been a few weeks, we are encouraged by our early August trends across the country and particularly in the back-to-school categories.
I'll now summarize some of the key aspects of our second quarter results as well as our guidance for the back half of the year and then I will take your questions.
Sales in the second quarter were $6.1 billion down 0.8% from last year on a comp basis.