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Macy's CFO - Expect improvement in trend to start in Q2


Thursday, 11 May 2017 11:34am EDT 

May 11 (Reuters) - Macy's Inc :CFO on conf call- international tourists sales declined at about the same rate as Q1 comp sales.CFO - weaker businesses in Q1 included handbags, fashion jewelry and watches, housewares.CFO - have 26 backstage stores open within macy's stores and are adding 19 more this year.CFO - Q1 gross margin decline was due to ending 2016 with inventory higher than anticipated, weak february sales and margin pressures in a few businesses.CFO - gross margin declines in beauty business due to increased promotional activity.CFO - making good progress in selling off properties that were previously closed.CFO - there is a dedicated Brookfield team working with our team on feasibility analysis and redevelopment activities related to about 50 real estate assets.CFO - had expected Q1 to be weakest quarter of year, benefits from closed stores were not expected to help until going-out-of-business sales were completed until late march.CFO - expect improvement in trend to start in q2.CFO - adding or expanding furniture and mattresses in approximately 60 stores.CFO - "we've concluded that our current model is too heavily weighted to promotional marketing".CFO - strategizing to improve our 'buy online pickup in store' experience.CEO- working on bringing additional traffic into stores in close partnership with our mall developers.