Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-13536 ________________________________ Macy's, Inc. (Exact ...

Macy's, Inc. (M) has been revitalizing its operations and leveraging technology to enhance efficiency and responsiveness to market demands. The company’s "A Bold New Chapter" strategy marks a pivotal year of transition, focusing on operational modernization, technological integration and enhanced customer engagement to navigate the competitive retail landscape successfully.By streamlining operations, optimizing the real estate portfolio, and leveraging AI for efficiency, Macy's is setting ambitious growth t ...

Macy's, Inc. (NYSE:M) Q1 2024 Earnings Call Transcript May 21, 2024 8:00 AM ET Company Participants Pamela Quintiliano - VP of IR Tony Spring - Chairman and CEO Adrian Mitchell - COO and CFO Conference Call Participants Matthew Boss - JPMorgan Chase Warren Cheng - Evercore ISI Ashley Helgans - Jefferies Tracy Kogan - Citi Dana Telsey - Telsey Advisory Group Chuck Grom - Gordon Haskett Oliver Chen - TD Cowen Brooke Roach - Goldman Sachs Bob Drbul - Guggenheim Partners Operator Greetings and welcome to the Ma ...

1Q24 Earnings May 21, 2024 Safe Harbor Statement All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s, Inc.’s ...

Financial Performance - First quarter 2024 diluted EPS was $0.22 and adjusted diluted EPS was $0.27, compared to $0.56 in the first quarter of 2023[3]. - Net sales for the first quarter were $4.8 billion, a decrease of 2.7% compared to the first quarter of 2023[3]. - Comparable sales decreased by 1.2% on an owned basis and 0.3% on an owned-plus-licensed-plus-marketplace basis[3]. - Net income for the 13 weeks ended May 4, 2024, was $62 million, a decrease of 60% compared to $155 million for the same period in 2023[18]. - Adjusted net income, excluding certain items, was $77 million with diluted earnings per share of $0.27, compared to $157 million and $0.56 for the prior year[31]. - Adjusted EBITDA for the 13 weeks ended May 4, 2024, was $364 million, down from $468 million in the prior year[30]. Sales and Revenue - Other revenue was $154 million, representing 3.2% of net sales, a decline of 60 basis points from the first quarter of 2023[5]. - The company updated its 2024 net sales guidance to a range of $22.3 billion to $22.9 billion[8]. - Adjusted diluted EPS guidance for 2024 is projected to be between $2.55 and $2.90[8]. - The First 50 locations achieved comparable owned sales growth of 3.3% and owned-plus-licensed sales growth of 3.4%[1]. - Non-go-forward locations comparable sales decreased by 4.5% on both an owned and owned-plus-licensed basis[5]. - The company reported a gross margin decline, with net sales of $4,846 million for the 13 weeks ended May 4, 2024, compared to $4,982 million in the same period last year[20]. Expenses and Assets - Selling, general and administrative (SG&A) expenses were $1.9 billion, a decrease of $39 million year-over-year[6]. - Total current assets increased to $6,262 million as of May 4, 2024, compared to $6,089 million on April 29, 2023[16]. - Merchandise inventories rose to $4,687 million, up from $4,361 million year-over-year[16]. - Cash and cash equivalents at the end of the period were $879 million, up from $606 million a year earlier[18]. - Long-term debt remained stable at $2,998 million as of May 4, 2024, compared to $2,996 million in the previous year[16]. Comparisons and Trends - Comparable sales on an owned basis decreased by 1.2% for the 13 weeks ended May 4, 2024, compared to a 1.6% decrease in the same period last year[26]. - The period-to-period percentage change in net sales from stores in operation for the 13 weeks ended May 4, 2024, and April 29, 2023, includes all digital sales and excludes commissions from licensed departments[32]. - The company does not include amounts from licensed department or marketplace sales in its comparable sales calculations in accordance with GAAP[33]. - The gross margin rate for the quarter was 39.2%, down from 40.0% in the first quarter of 2023[6].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 3, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-13536 Macy's, Inc. (Exact name of registrant as specified in its charter) 151 West 34th Street, New York, New York 10001 (212) 4 ...

A Bold New Chapter Q4 2023 Earnings Safe Harbor Statement All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Privat ...

Financial Data and Key Metrics Changes - In Q4 2023, net sales were $8.12 billion, down 1.7% year-over-year, with comparable owned plus licensed sales down 4.2% [34] - Adjusted diluted EPS was $2.45 compared to $1.88 in the prior year [37] - Gross margin rate increased by 340 basis points to 37.5%, with merchandise margin up 260 basis points [35][36] - SG&A expense was $2.4 billion, down 2% from the prior year, representing 28.7% of total revenue [36] Business Line Data and Key Metrics Changes - Macy's net sales declined 2.5%, with comparable sales down 4.7% on an owned plus licensed basis [34] - Bloomingdale's net sales increased by 3.5%, while comparable sales decreased by 1.6% [35] - Bluemercury achieved net sales growth of 7.8% and comparable sales growth of 2.3% [35] Market Data and Key Metrics Changes - The company plans to close approximately 150 underproductive Macy's locations, which represent about 25% of gross square footage but less than 10% of sales [12][61] - Go-forward locations outperformed non-go-forward locations by approximately 500 basis points in comparable sales [14] Company Strategy and Development Direction - The strategy "A Bold New Chapter" aims to strengthen the Macy's nameplate, accelerate luxury growth, and modernize operations [5][7] - The company plans to close underperforming stores and invest in remaining locations, including opening 30 small-format stores over the next two years [17][61] - The focus is on enhancing the omnichannel experience and revitalizing product assortments to meet customer needs [10][20] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer resilience is better than expected, with inflation slowing but still impacting consumer spending [6] - Fiscal 2024 is viewed as a transition and investment year, with expectations for low single-digit comp growth and mid-single-digit EBITDA growth starting in 2025 [7][24] - The company is committed to returning to sustainable, profitable growth and enhancing shareholder value [31][44] Other Important Information - The company ended the year with over $1 billion in cash and generated $1.3 billion in operating cash flow [37] - The company plans to reduce overall capital expenditures to approximately $875 million in fiscal 2024 [41] Q&A Session Summary Question: Near-term actions to strengthen the Macy's nameplate - The focus is on addressing underproductive assets, enhancing digital experience, and expanding the portfolio [50][51] Question: Sales trends post-holiday - Sales were in line with expectations, with confidence in momentum for 2024 [52] Question: Factors driving guidance on comp sales - New inventory composition and the introduction of new brands are expected to drive sales [56] Question: Store closures and e-commerce sales protection - The closures are based on comprehensive diagnostics, and efforts will be made to capture demand through neighboring stores and digital outreach [60][61]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show a year-over-year decline in revenue, net income, and operating cash flow Consolidated Income Statement Highlights (Unaudited, in millions, except per share data) | Metric | 13 Weeks Ended Oct 28, 2023 | 13 Weeks Ended Oct 29, 2022 | 39 Weeks Ended Oct 28, 2023 | 39 Weeks Ended Oct 29, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $4,860 | $5,230 | $14,972 | $16,178 | | Total Revenue | $5,038 | $5,467 | $15,491 | $16,866 | | Operating Income | $86 | $192 | $453 | $1,054 | | Net Income | $43 | $108 | $175 | $668 | | Diluted EPS | $0.15 | $0.39 | $0.63 | $2.37 | Key Balance Sheet Items (Unaudited, in millions) | Account | Oct 28, 2023 | Jan 28, 2023 | Oct 29, 2022 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $364 | $862 | $326 | | Merchandise inventories | $6,025 | $4,267 | $6,403 | | Total Assets | $18,111 | $16,866 | $18,230 | | Long-Term Debt | $2,997 | $2,996 | $2,996 | | Total Shareholders' Equity | $4,144 | $4,082 | $3,475 | Cash Flow Summary (Unaudited, in millions) | Cash Flow Activity | 39 Weeks Ended Oct 28, 2023 | 39 Weeks Ended Oct 29, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $158 | $488 | | Net cash used by investing activities | $(716) | $(869) | | Net cash provided (used) by financing activities | $60 | $(1,005) | | Net decrease in cash | $(498) | $(1,386) | - Macy's operates under three brands: Macy's, Bloomingdale's, and Bluemercury, with stores in 43 states, D.C., Puerto Rico, and Guam as of October 28, 2023[32](index=32&type=chunk) Net Sales by Merchandise Category (39 Weeks Ended, in millions) | Category | Oct 28, 2023 | Oct 29, 2022 | | :--- | :--- | :--- | | Women's Accessories, Shoes, Cosmetics & Fragrances | $6,067 | $6,214 | | Women's Apparel | $3,348 | $3,772 | | Men's and Kids' | $3,177 | $3,459 | | Home/Other | $2,380 | $2,733 | | **Total Net Sales** | **$14,972** | **$16,178** | - Credit card revenues, net of various costs, **decreased to $142 million in Q3 2023** from $206 million in Q3 2022, with the long-term program agreement with Citibank expiring on March 31, 2030[45](index=45&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - During the 39 weeks ended October 28, 2023, the company repurchased **1.4 million shares for approximately $25 million**, with **$1,375 million remaining** under the share repurchase authorization[59](index=59&type=chunk) - The company incurred **non-cash settlement charges of $129 million** in the 39 weeks ended Oct 28, 2023, related to its Pension Plan, primarily from the purchase of a group annuity contract[65](index=65&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a sales decline from macroeconomic pressures, improved gross margin, and five key growth vectors Q3 2023 Financial Highlights vs. Q3 2022 | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Comparable Sales (Owned+Licensed) | -6.3% | -2.7% | | Digital Sales | -7% | N/A | | Gross Margin Rate | 40.3% | 38.7% | | Net Income | $43M | $108M | | Adjusted Diluted EPS | $0.21 | $0.52 | | Merchandise Inventories | -6% | N/A | - The company is focused on five strategic growth vectors including private brand reimagination, small-format stores, digital marketplace expansion, luxury offerings, and personalized marketing[77](index=77&type=chunk) - Q3 2023 net sales were impacted by macroeconomic conditions, with strength in beauty and weakness in women's casual sportswear, big ticket items, and handbags[79](index=79&type=chunk) - Q3 2023 **gross margin rate increased by 160 bps YoY** to 40.3%, driven by lower permanent markdowns and improved inbound freight costs[82](index=82&type=chunk) - Q3 2023 **credit card revenue decreased by $64 million YoY**, primarily due to increased portfolio funding costs and higher estimated credit losses[81](index=81&type=chunk) - For the 39-week period, the gross margin rate increased 30 bps YoY, while the merchandise margin rate decreased 20 bps, driven by category mix changes[92](index=92&type=chunk) - The company's capital allocation goals are to maintain an investment-grade balance sheet, invest in growth, and return capital to shareholders[102](index=102&type=chunk) Cash Flow Summary (39 Weeks Ended, in millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $158 | $488 | | Net cash used by investing activities | $(716) | $(869) | | Net cash from (used by) financing activities | $60 | $(1,005) | - As of October 28, 2023, the company had **$2,862 million of available borrowing capacity** under its ABL Credit Facility[111](index=111&type=chunk) Updated Full-Year 2023 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $22.9B - $23.2B | | Comparable Sales (Owned+Licensed, 52-wk) | -7% to -6% vs. 2022 | | Gross Margin Rate | 38.4% - 38.5% | | Adjusted Diluted EPS | $2.88 - $3.13 | - The company reviews goodwill for impairment annually, with **97% of goodwill allocated to the Macy's reporting unit**[134](index=134&type=chunk) - Qualitative impairment tests in May 2023 and Q3 2023 concluded that **goodwill was not impaired**, though future impairment risk exists if market conditions worsen[140](index=140&type=chunk)[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures remain materially unchanged from the prior Annual Report on Form 10-K - There have been no material changes to the Company's market risk as described in the Company's 2022 10-K[142](index=142&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of October 28, 2023, the Company's **disclosure controls and procedures were effective** to provide reasonable assurance of timely reporting[143](index=143&type=chunk) - No changes occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[144](index=144&type=chunk) [PART II – OTHER INFORMATION](index=31&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financial condition - The Company does not expect that any of its current legal proceedings will have a **material adverse effect** on its financial position or results of operations[147](index=147&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Risk factors remain materially unchanged from those disclosed in the 2022 Form 10-K - There have been **no material changes** to the Risk Factors described in the Company's 2022 Form 10-K[148](index=148&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) This section includes forward-looking statement disclaimers and disclosures on Rule 10b5-1 trading arrangements - The report contains forward-looking statements subject to various risks, including consumer spending, competitive pressures, and macroeconomic conditions[149](index=149&type=chunk)[150](index=150&type=chunk)[154](index=154&type=chunk) - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended October 28, 2023[153](index=153&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and iXBRL data - Exhibits filed include CEO and CFO certifications under the Sarbanes-Oxley Act and the financial statements formatted in iXBRL[157](index=157&type=chunk)

Macy's, Inc. (NYSE:M) Q3 2023 Earnings Conference Call November 16, 2023 8:00 AM ET Company Participants Pamela Quintiliano - Vice President of Investor Relations Jeff Gennette - Chairman and Chief Executive Officer Tony Spring - President and Chief Executive Officer-Elect Adrian Mitchell - Chief Operating Officer and Chief Financial Officer Conference Call Participants Matthew Boss - JPMorgan Oliver Chen - TD Cowen Brooke Roach - Goldman Sachs Ashley Helgans - Jefferies Michael Binetti - Evercore ISI Arian ...