Terry Lundren Talks Macy's Clean Inventory, Partnership With Brookfield

Terry Lundren, CEO of Macy's Inc M, was a guest on CNBC Thursday to talk about the company's third quarter results.

Macy's earned $0.17 per share in the third quarter, which fell short of the $0.41 per share analysts were expecting. Lundren stated that the company is on track to achieve a full year earnings per share for the full year of $3.15 to $3.40.

Lundren said Macy's fourth quarter is naturally the busiest shopping season and management is confident it can achieve a better than previously guided same-store sales decline.

Lundren noted that the company can benefit from the ongoing momentum as its third quarter marked an improvement from the first half of the year. He said inventory is in "such a better shape" than it was one year ago when it was sitting on so much inventory it had no choice but to implement large scale markdowns.

"Our inventory is fresh, its targeted to the categories we believe are going to be strong," he emphasized. "It's a totally different picture and a tremendously different gross margin picture this year versus last."

Real Estate Monetization

Lundren went on to discuss Macy's announced agreement with Brookfield Asset Management to help monetize its real estate portfolio.

Lundren stated that Brookfield is a huge company that most people don't talk about, but provides the type of vision and expertise which executives at a retail chain might not necessarily have.

For example, Lundren stated that Brookfield has the expertise and knowledge to convert part of a parking lot into a residential park. The executive also added the finer details of the agreement are still being worked out but he is optimistic that it will result in the creation of shareholder value.