Good morning, and welcome to this next session of the Goldman Sachs Global Consumer and Retail Conference. My name is Brooke Roach, and I cover the Apparel, Softlines, and Brands sector here at GS. I am thrilled to introduce our next session with Macy's. Here with me today is Tony Spring, Chairman and CEO, and Tom Edwards, COO and CFO. Welcome, Tony and Tom.
Good morning.
Thank you.
Great to be here.
Thank you for joining us. Tony, it has been over two years since launching the A Bold New Chapter strategy. Where has Macy's made the most progress? What has changed versus your expectation when the strategy launched, and what opportunities are still in the earlier stages of execution?
Thanks for the question. First of all, great to be with all of you. The A Bold New Chapter is working. We are two and a half years into the strategy. When we began, we talked to 60,000 customers at Macy's and really had a good understanding of what we needed to do to improve the quality of the business. It was make sure that we had compelling stores. We closed the underproductive stores. We started our Reimagine program. We started with 50 to make sure that we could get it right and learn, added another 75. The result two and a half years later, nine of 10 quarters, those Reimagine stores have grown. We have now had five consecutive quarters of growth at Macy's, six quarters of beating our guidance on the Street, two quarters of net sales growth. We obviously accelerated and differentiated further Bloomingdale's and Bluemercury.
Both those brands continue to grow. We are on two straight quarters of double-digit growth at Bloomingdale's and continuous growth at Bluemercury. We are still in the early innings of our strategy and work, which to me is more opportunity for the brands and the business. We have the opportunity to continue to refine our assortments. We have the opportunity to continue to create a better experience, both physically and digitally, for the customer. Since the start of the strategy, our net promoter score at the Macy's stores are up 10 full points. The experience for the customer is significantly better than it was at the start of the strategy. I step back and say the A Bold New Chapter was intended to grow the company. We are growing the company. The A Bold New Chapter was intended to improve the quality of the customer experience. The customer experience is far better today.
The strategy was intended to accelerate the growth of our luxury brands. The luxury brands are growing and have unique positions in the marketplace. The intent of the strategy was to improve our end-to-end operations. We are delivering packages faster, less expensively. We closed underproductive supply chain centers, opened a state-of-the-art center in China Grove. All in all, a lot of progress, but a lot of opportunity still in front of us.
Great to hear. You mentioned the Reimagine 200 stores. Let's dive a little bit deeper into that. What changes have proven most impactful, and how much opportunity remains within those stores? Tom, how should investors be thinking about the profitability trajectory of those stores relative to the broader fleet?
Going back to the beginning of the Reimagine program, we picked the first 50 stores, and we now have three cohorts of stores, 50, 75, or the Reimagine 200. All cohorts are growing. As I said, eight of nine quarters, we've had growth in those stores. But the Reimagine program was like a recipe. It was the ingredients that have to all be done at the same time. We needed better merchandising. We needed better merchandise presentation, storytelling. We needed to improve the fitting room experience. We needed more colleagues in our store. We added people to handbags, people to shoes, people to work in the fitting room. We needed to make sure that our density on the floor was reflective of how we wanted the customer to shop within the stores. We needed to make sure that we had the right proportion of best, better, good.
We're a department store. We obviously want to have a range of price points. I always say more variety, less redundancy. But we had way too much of the same thing floor after floor, department after department. When you ask me to break apart what is the most important ingredient in the strategy, it's like asking me which is my favorite child. I like all of it, and when it all works together, you get the kind of net promoter score improvement, you get the kind of continuous sales improvement. You get the kind of response where the vendors in the vendor community want to work with us and want to be a part of these stores. I think the Reimagine program is a great case in point for the future of what Macy's stores can be.
60% of our store base now, 75% of our Macy's store business is in the Reimagine program.
I would add, when we look at the returns on investment, we are pleased first with the performance. Investment returns start from growth. The Reimagine stores are growing, as Tony noted, for nine out of the last 10 quarters. When we look at our investment, it is capital- light. We are investing in people, we are investing in fitting room and making sure that the flow is correct, as well as events and marketing. Importantly, we have been learning and iterating as we have moved from the first 50 to the next 75 and adding up to 200. We are getting more effective and more efficient in what we invest in and make sure it is appropriate for the local market and what that store stands for in that market.
Over that time, we have seen improvements, initial sales growth immediately, continued year-over-year for the different cohorts, and then profitability following that after the initial investments. We are very pleased with the returns. We are looking to expand our Reimagine fleet, where as a matter of fact, we are testing or bringing forward some pilots into this year to get a head start into the following year for 2027, and look forward to continue to build it out as a key part of the strategy for A Bold New Chapter.
Great to hear. Let us turn to Bloomingdale's, which has been a very successful area of the business recently. As you think about the outsized growth of the Bloomingdale's banner, what proportion of this is due to your own execution versus a function of broader competitive dynamics? Where do you see the greatest opportunity ahead, and can you deliver this even as competitors begin to strengthen?
First of all, I love Bloomingdale's. I grew up at Bloomingdale's, 35 years of my career at Bloomingdale's. It is a special brand. If we did not own Bloomingdale's, I would want to buy it. It is that good. They have had double-digit growth two quarters, the last two quarters of 2025, up over 9%, so really on four straight quarters of outstanding growth and performance. It starts first with the right strategy. They have the right strategy. They cater to an advanced contemporary to luxury consumer. Obviously, great merchandising skill in the company, great leadership, strong execution, and a long culture of growth and imagination and innovation. Disruption in the marketplace certainly helps to fuel the growth that Bloomingdale's is having. But without the right leadership and strategy and structure and culture and execution, they would not be able to capitalize on any level of disruption.
Now, we just launched, this past week, our Hotel Bloomingdale's campaign for the fall season. That is a partnership with The Ritz-Carlton and lots of exclusive product. If you haven't been to 59th Street or online, it is a great experience. It is a lot of fun. I think the one thing that Bloomingdale's brings to retail is a level of fun and imagination and curiosity that I think in that segment tends to be more serious. They distinctly stand out in their competitive set, the range of brands that they offer, the amount of discovery that is a part of the shopping experience, and they are hungry. So even with the level of growth that we've had at Bloomingdale's, we continue to see Bloomingdale's as a growth engine for Macy's, Inc.
That is organic growth, more points of distribution, more Bloomingdale's stores, more Bloomingdale's The Outlet Store, more opportunity digitally, more opportunity physically. When I look back now at the Bloomingdale's growth, sometimes you could say, "Wow, you've had a good performance in one category of business." It has been broad-based. It has been in apparel. It has been in accessories. It has been in men's. It has been in home. It has been in physical retail. It has been in digital retail. It has been during the fashion season. It has been during the gifting time period. It has been in off-price. It has been in full price. It has been in marketplace, licensed business, and owned business. So there isn't an element of their business right now that isn't growing, which is very exciting to see.
When I take a step back and look at Bloomingdale's as a percent of the whole company where it is in the high teens, we recently provided more information on our nameplate breakouts, and Bloomingdale's is a really important and growing part of the business. But we don't provide profitability. It is nicely profitable, and it is a key part of the A Bold New Chapter algorithm for growing the top line and ultimately growing the bottom line.
That is great to hear. Let's discuss one of the debates that is coming out of earnings, which is traffic conversion and AUR. You've discussed healthy traffic trends and AUR growth, but conversion trends have been somewhat muted. What are you seeing in conversion today, and what initiatives do you believe can drive further improvement from here?
Let me take it first. I'll hand it over to Tom. We'll always talk over each other, so it's a sign of a healthy marriage. First, you have to step back and say the golden equation. We all know it in retail. Units, AUR, obviously conversion, and then whatever returns or cancellations come out. It's hard sometimes to get all elements of the equation to go up at the same time, and there tends to be a reverse impact of as AUR goes up, conversion tends to go down. It makes sense. The more expensive the purchase, the more consideration that may go into it. I'd say we're on a learning journey on our golden equation, and we have the benefit of having Bloomingdale's and Bluemercury, which has a slightly lower conversion rate than Macy's does and has a higher AUR.
We're also trying to become better students of the business. You would say conversion should always be high. I'd say, except if you're advertising prom dresses in January, and you want to highlight prom dresses in January so people buy prom dresses in March and April. You probably want to have a very high conversion rate on something that you're trying to sell through in a day or two, and your expectation is very different for that conversion than maybe for the more deliberate purchase, big ticket, fine jewelry, things that maybe are going to require a few visits for you to inspect and understand better. We're pleased with our level of traffic. Traffic in aggregate is growing. It's flat in the stores.
We're seeing the conversion rate be the single biggest challenge that we have as the AUR goes up, but we feel like we understand exactly how to work with the client and understand the differences I was describing in conversion. Ultimately, we can deliver a better growth pattern because the customer is happier with their purchases.
I'd add, when we look at AUR, it is up because of really the foundations of our business model. We're adding better brands, the best brands, and laddering up and improving the customer experience. So it's not as much a pricing discussion as a brand matrix and fashion authority discussion. The other piece I'd just emphasize that Tony talked about is that this is all part of our healthy model. The higher AUR driven by our base strategy, slightly lower expected conversion, but a higher basket size, and we've been seeing this dynamic over a year. So it is not a new phenomenon. It is one from the initial start of it. The last point I'd make is around AUR, that higher AUR is not a direct translation to higher gross margin.
It supports it over the long term as it drives sell-throughs and engagement, but it also comes with some higher costs. As we move through the business, we look to drive top-line growth, drive overall margin dollars along with it, and manage our overall system moving forward.
Let's round out the discussion on AUR with a question that we're asking all companies at our conference, which is on AUR. Do you expect your prices in AUR to be higher, lower, or the same in the second half of this year versus the rate delivered in the first half?
The AUR has grown really since the inception of our A Bold New Chapter strategy at all three brands. It's, again, as Tom said, a reflection of the quality of the assortment. I think the 9% growth we had in the second quarter will start to moderate as we come around the back half of the year and up against the impact of some of the tariff inflation that's in pricing. But as a department store, we have the benefit of being able to have best, better, good, and be able to be appropriately sharp on pricing, and at the same time, make sure that we have a wide aperture of offerings for the consumer because someone's indulgence might be someone else's desire to save.
Very clear. Let's shift to the credit business. How are you thinking about the near-term drivers and long-term growth opportunity within that credit and loyalty ecosystem?
We feel good about our credit business, but it needs to be put in a broader context. It's part of the Macy's overall ecosystem. We serve over 40 million customers. We have visibility to over 70% of transactions for those customers that are in our loyalty program. The majority in our loyalty program also have a credit card. It is an intimate and an integral part of the overall system, and we see it growing with the business. We've seen very strong performance over the past year, and then into Q1 and Q2, continued growth. It's really a reflection of a couple different things. The credit portfolio health within the credit card is strong. We have low net credit losses, and we've seen that improve, even in the current economic environment. That was a driver of Q1 results.
We have just a base engagement with our stores and with digital, bringing on new accounts and encouraging usage as part of the overall system. As we look forward, we look to grow the credit business as part of the overall growth of the company because it's connected directly.
Rounding out some of the discussion on the strategy, let's talk a little bit about your stores. You've made substantial progress repositioning that store fleet through closures, Reimagine investment, and selective growth initiatives. How are you thinking about the long-term role of stores within the Macy's ecosystem, and what does the store base look like two to three years from now?
I think we've talked about at the beginning of the strategy, approximately 350 go-forward stores would make sense for the Macy's brand, and I think we're sticking with that approximate number. We've closed about 85 stores through the first two years of the strategy. Our closure announcements happen at the end of the fiscal year. The improvement in the store is the improvement in the business. I think as we all came out of that post-pandemic period, we realized the importance again of omni-channel, of the customer not being one channel or another channel. People will choose what they think is appropriate for their life and that moment. There are times when you're going to want to be in stores, and you're going to want to meet with your girlfriends and have lunch and shop the store.
There are other times you need something quickly, and you're going to use same-day delivery, and you're going to go on the app, and you're going to buy it, and hopefully, we're going to get it to you in time. But that omni-customer is so valuable to us that we're highly focused on people that are both physically and digitally engaged, that we understand their life patterns and are able to better, through the use of information browse behavior, better support their shopping experience at all three of our brands.
Let's shift to some topical discussion questions here. Last week, you reported 2Q results, and you noted that consumers remain resilient and engaged. What are you seeing in the consumer and promotional environment today? How is back-to-school trending, and how do you expect the backdrop to evolve through the second half of 2026? And maybe within this question, we can ask a question that we're asking all companies, which is, do you expect the health of the consumer to be better, the same, or worse in the back half than the front half? And similar, do you expect the consumer to be similar, better, or worse in 2027 versus 2026?
I'm never good at multiple-choice questions. I would simply say the consumer remains resilient. I never thought I would use that word as often as I've used that word. They're definitely choiceful. When you say the consumer, what consumer are you talking about? Our most loyal and frequent consumer is highly engaged to shopping, as you would expect, with great consistency and passion. I've said the interest really remains around fashion and newness. The good news is there's a lot of new fashion for fall. Everybody needs to go out and start shopping because if you don't own leather, if you don't own suede, if you don't own a structured bag, if you don't own animal, if you don't have something, there's just, I think, newness across the entire store. The variation, I think, within boots is fun. We're excited about the fall season.
That being said, it's going to be choppy. I think there is no straight line unless you could tell me there won't be an inflation increase in the remainder of the year. We won't have a rate increase tomorrow. We won't have oil prices where they are today. There's way too much uncertainty, macroeconomic, geopolitical, weather, things we can't control. Our team, though, is solely focused on the quality of our assortment, taking care of the customer, making sure we're determined to try to continue to bring in newness, let the inventory continue to flow, and make sure that as the customer votes on product, which they do every single day, we take the appropriate steps, whether it's marking down the things that don't work or reordering the things that do work. I love being a department store in this environment. We are able to hedge against everything.
If the structured business is soft, we can buy into the casual business. If the casual business is soft, we can buy into the suiting business. If the suiting business is soft, we can lean into the men's business. We have come through a cycle of where the big-ticket business, based on interest rates, has been a little softer. All of a sudden, business has gotten a little bit better. We went back to pre-tariff pricing. So we are seeing a customer lean right back in and buy furniture, mattresses, other accessories for the home. This is a great business environment where you do not have a straight line, where you do not have a clear understanding of what categories are going to be strong and what categories are going to be a little softer. Our multi-category business is well-positioned for an environment like this.
I would add that we are entering the fall with a very good inventory position. In Q2, we are up 2.5% in line with our sales growth. As Tony noted, we are coming into fall with newness, and fashion, and really ready to deliver for the customer and be there for them in their more resilient mode.
Tony, you mentioned several drivers of fall fashion, and on the call you also talked about a couple of other structural drivers of fashion, whether that is GLP-1s or just fashion shifts that continue to be a cycle. Do you think that those tailwinds are going to build as we move into 2027? Or do you think that this is a fall 2026 phenomenon?
I think it builds. Look at how well-dressed the room is. We have all gone back to the office. People realized they could not wear their sweats and their comfy clothes to the office three, four, or five days a week, whatever days a week they are in the office. Then you add to the dress-up environment component. I do not care whether you put a blazer with a pair of jeans, or you are wearing suit separates, or you are wearing a full suit, or you are wearing a dress. It is an opportunity for a multi-category business that really owns the classification categories to be well-positioned. Now, you throw on top of that the beginning early impact of GLP-1s. Do not ask me the specifics because I cannot tell you. All I can see is that the plus-size business is very soft and that most other areas of apparel are healthy.
I think you're seeing people as they go through a period of time on GLP-1s, losing enough weight, what happens? People want to get a new wardrobe. You don't get a new wardrobe just for the summer. Then you need a new wardrobe for the fall, then you need a new wardrobe for the winter, then you need a new coat, then you need a new swimsuit. So we see this as, we're on the early cycle of GLP-1s. It's only affecting so far the top tier, maybe the coast and Miami. So the opportunity is meaningful, I think, as we go forward.
Only the top tier. So you're seeing more of that in Bloomingdale's than at Macy's?
We're seeing more of it in Bloomingdale's. We're certainly seeing more of it in our more expensive components of the business, the higher-ticket AUR product. Again, we've got great anecdotal stories of women coming in, having lost 30 lbs, 40 lbs, 50 lbs and treating themselves. Then it's very emotional, going through an experience like that where they maybe have never been at that weight in their life, and they worried about, "Can I do this? Is this appropriate to buy this much for myself?" So I love our colleagues and their interest in, again, it's why we feel so strongly about people and the connection between humanity and technology. This is not just an AI agent that's going to help you after you've gone through a life-changing experience like this.
This is also the quality of our colleagues going hand-in-hand with our customers and making sure they feel comfortable with their purchases. If they get something wrong, we'll take it back, but making sure they feel great about what they've walked out with.
Very clear. Tony, you just described a lot of opportunities that are driving the business into the back half. As we look at your second half outlook, you are starting to come up against more difficult comparisons, and you have also guided a little bit more conservatively than the trend results that you have recently put up. How are you thinking about the sustainability of that recent very strong momentum that you have put up as comparisons become more challenging? What gives you confidence that can drive growth? Tom, is there anything in the guide that we should know?
I guess probably my middle name now is Prudent. Prudent meaning sensible, thoughtful, well-informed. We are not going to get ahead of our skis. You made the right comment, Brooke. We are up against our strongest comp in the third quarter last year, 3.2%, with all the brands growing. Guide is not a ceiling, so we have the opportunity to do better. The quarter is unfolding as we expected. I already talked about the fact that we feel really good about our inventory position. We feel good about the fall trends. I think both brands, Macy's launched the Celebrate American Designers campaign with three of the iconic guard between Donna Karan, and Michael Kors, and Tommy Hilfiger, and then three new designers in our partnership with the CFDA and FIT, and just seeing what the customer's reaction has been is exciting.
We look at it as being, yes, we are going to always guide thoughtfully and make sure that it is within our team's ability to deliver that and beyond. At the same time, we are going to just stay focused on satisfying the customer.
With regard to the guide, I would point out a couple different things. The first is we are pleased to raise it. For the full year, we raised both the top line and the bottom line, and this is coming off of a Q1 where we raised the top line and the bottom line as well. Coming into the year at an EPS of $1.90 - $2.10, and we are now at $2.15 - $2.35. So pleased that we are seeing continued momentum, which gives us the confidence to do that. Within that, when we look at the back half, our back half guide is in line on an underlying basis with what we thought when we talked to you last quarter. So our outlook is unchanged. We had a better Q2, and we are looking at the same compares as we head into the back half.
Confident in the business.
I said to Tom after earnings, I said, "Did we raise the top line? Did we raise the bottom line? Did we buy back stock? Did we raise our dividend?" Yes was the answer to all those questions, but we must not have conveyed it as powerfully as he just did.
Very clear. Tom, let's dive a little bit deeper into the gross margin opportunity.
Sure.
You've discussed opportunities around assortment refinement, inventory productivity, and reg price sell-through.
Which of these initiatives represents the largest remaining opportunity to improve gross margin, and which is more near in versus longer dated?
Sure, I would be happy to help with that. In Q2, our underlying gross margin increased about 10 basis points, and it was driven by assortment and all the items you mentioned. As we look at the back half of the year, we expect to see the base business continuing to perform, and those underlying trends continue with our assortment, our Reimagine stores, Bloomingdale's performance, all supporting our gross margin. We also expect to see supply chain savings, which will be benefiting us more in Q4 than Q3. That is allowing us to our guide to raise our gross margin for the year. So we have an always-on savings approach, and we are seeing the benefits of that. When we look longer term, there are really many things. First is the assortment. We can expand private brand. We have supply chain initiatives, as well as other savings opportunities through the business.
We are really looking to right now to grow gross margin in the back half and then grow it over time along with the top line. I would also point out, while it is not gross margin on SG&A, we levered SG&A in the second quarter with sales growth. So with a low single-digit comp, we are able to lever the P&L. We saw that in Q1 as well, and look forward to continuing to drive results top line and bottom line to drive long-term profitable growth.
One of the other updates that we heard from you in 2Q was your decision to reinvest the tariff refunds. Tony, you talked about reinvesting some of those into brand marketing Reimagine expansion, value investments, including some price, and other A Bold New Chapter initiatives. Do you expect these investments to have a comp uplift in the back half of this year or early next? Tom, maybe piggybacking off of that, can you unpack in more detail how we should be thinking about cycling these on a net basis for margins and for sales into 2027?
So just to take a step back, when we got the tariff refunds, Tom and I really tried to look at 2025 and say, what were the changes that we made in 2025 based on the impact of tariffs? They were a lot of the things that we chose to reinvest in now in the fall of 2026. We had taken down some of the Macy's brand marketing. We had not planned to do as many pilots for 2027 on the next series of Reimagine stores. We had obviously taken up some of our pricing, so we wanted to get sharper on certain categories. I think we mentioned furniture and fine jewelry as being two of the categories. Then obviously, we had reduced our earnings per share, so we wanted to give back a small portion to the investment community.
So what I found was a balanced capital allocation approach to a one-time benefit from tariffs that is anniversariable. That I think, is what we are challenged with, to make sure we're investing for the long term, to make sure that we're taking care of all of our stakeholders, to making sure we're really thinking about the future of this company beyond any one-time bogey or benefit.
I'd emphasize that it's a long-term focus. The single largest item is investment in top-of-the-funnel marketing to support the Macy's brand, and that has a long-term impact. We're piloting Reimagine stores, so we get a faster start to 2027. It's not so much a lapping, but just continuing and building on the momentum of the business. Where we have invested in price, I would say that there's no outsized investment in any one area, nor is it the largest. So we don't feel like with all the levers we have to drive the top line, that that's something that is a meaningful lapping item.
It does sound like some of those price investments in big ticket and furniture are starting to make a difference in how your consumer is perceiving the brand.
Yeah, I think those places where the tariff impact was greatest are having the best response to any pricing adjustments. And those two areas were ones that both in big ticket because of the tariffs, and I think frankly in jewelry because of the cost of gold right now, and also the balance of mined versus lab-grown diamonds, we really want to make sure that we were sharp on pricing. Those were two areas where we saw the most sensitivity from the consumer.
Again, it's not rolling back prices across the board. We really have a clear strategy about best, better, good, range of prices in all categories. Between our Macy's Backstage and our clearance business, our off-price business at Bloomingdale's, and our full-price business, we should have enough optionality for the consumer to choose from without having to create one-time events.
Very clear. That's great. Another question on margins that we're asking all companies at our conference this year is whether or not you expect to see more operating margin tailwinds or headwinds in 2027 versus 2026, and can you contextualize what those large drivers are?
I'd say for us, our controllable items are really our best, better assortments and moving those forward, building out private brands, and then the savings components, which we have a very clear line of sight to. I think those are both our tailwinds and things that we have seen impacting and supporting the business going forward. I'd just emphasize that the A Bold New Chapter strategy is drive the top line and let it flow through the P&L to drive earnings growth. We look forward to continuing to deliver that.
Very clear. Another driver of margins that we're debating is AI. One question that we have for you that we're asking all companies is: Do you expect a significant increase in efficiency as a result of AI in 2027 versus 2026? What part of the business changes the most as a result of AI over the next year?
Sure. We look at AI much more broadly than just efficiency. We look at it as an integral part of helping the A Bold New Chapter and accelerating it. It's driving revenue, it's improving our customer experience, and it's increasing our organizational effectiveness, so how we are working together and how we are delivering across the enterprise. We saw that in some of the examples noted in this quarter's prepared remarks and discussions, where we've rolled out an AI conversational assistant to Macy's first online, then the stores, then the Bloomingdale's. Our customer is more engaged when they use it and buys more. That is a win for all of us. We're also using AI to help make better decisions in how we allocate inventory within our supply chain, and we're levering it in other areas as well. But it is an assistant.
It is not the be all and end all. I'd also note that we're very careful from an ROI perspective to make sure that there are returns for these projects, because there is a cost that comes with AI. We're balancing it carefully, Brooke.
There's also governance, and I think there's the balance between making sure we have a number of pilots out there that don't move beyond proof of concept, and then strategic big bets. Tom and the team have done a great job of making sure that we have both.
Great to hear. Let's put all this together and talk about EBITDA margins. As you think about the medium-term EBITDA margin range of the business, what is that, and what are the key levers to get there? What levers do you also have to protect against a very dynamic macro backdrop, where we are seeing some volatility in things like freight and fuel?
Sure. Well, this year, we've raised our EBITDA as part of our guidance, and we have support over the longer term in both the gross margin, where we talked about assortment, private brands, our supply chain savings, and just all the initiatives in stores and online that are helping support it. In SG&A, our a lways- on savings, which has delivered results in the past and we'll continue to work on. We've also shown with a low single-digit top line that we can lever the P&L from an SG&A perspective. So our first goal is drive the top line. There's no growth without top-line sales growth, and then we'll work to flow it through to the bottom line and ultimately look to look at our margin structure going forward.
Very clear. Tony, we're about out of time. Any closing comments or thoughts that you'd like to share with the audience?
Well, we're two and a half years into our strategy. As Tom mentioned, we just came off of our earnings. We raised top line and bottom line. We've got record customer service scores. I think back to the beginning of the strategy, and if we didn't have tariffs, if we didn't have inflation, if we didn't have a fuel crisis, if we didn't have the geopolitical and macroeconomic, where would we be? What would I do differently? Well, I would Reimagine Macy's stores. I'd close underproductive stores. I'd get rid of unproductive supply chain assets. I'd double down on Bloomingdale's and Bluemercury. I'd make sure our end-to-end operations were effective. I'd speed the delivery to the customer. I'd invest in physical and digital. I'd put more people into the stores. I'd make sure that our assortments were modern and compelling and tasty.
I would make sure that we had the right balance of not undershooting the customer in any one category, that we believe that the customer at both Macy's, Bloomingdale's, and Bluemercury has the capacity to spend. So we're two and a half years in, and I'm really proud of the progress we've made. I think we have clear signs with eight of nine quarters of growth in the Reimagine stores, double-digit growth at Bloomingdale's, multiple quarters of growth at Bluemercury. We're on the right path. The key right now is to make sure that we follow our strategy, we stay focused on execution, we pay attention to the macro environment so we don't trip on our way to future success, but we really commit ourselves to delivering more for the consumer.
Great to hear.
Thank you.
Tony. Thank you, Tom.
Thank you.