Like Target, Macy's Q3 2023 earnings call transcript reads like a love letter to beauty.
Tony Spring, president and incoming CEO noted that "Macy's net sales declined 7.9%," yet "sales results exceeded expectations with strength in beauty, particularly fragrances and prestige cosmetics."
The executive added, "In the fourth quarter, we over-indexed in beauty with sales penetration in this top-performing category typically rising by approximately 300 basis points compared to the balance of the year."
Furthermore, Spring praised new partner brands like JLo Beauty, the success of make-your-own gift stations, and gift sets from brands like Chanel, Dior and La Mer.
Spring added, "Our sales outlook reflects our confidence in Macy's, Inc. as a gift-giving destination, including the expected increase in beauty sales penetration, particularly fragrances." He also pointed to gains related to "the expansion of cosmetics" at Macy's.
Jeff Gennette, chairman and current CEO, praised Bluemercury's new store format in New Canaan, Connecticut, which he said "sets the standard for what upscale beauty retailing can be in the future."
In conclusion, Spring said, "I love the beauty and fragrance business this time of the year because it adds 300 points of penetration to the Macy's business [and] accentuates the power of Bluemercury or the luxury fragrance business at Bloomingdale's."
