Core Viewpoint - Macy's Inc. has revised its annual outlook due to initial and current tariffs, moderation in consumer discretionary spending, and increased competition, leading to a decrease in expected adjusted earnings per share for fiscal 2025 [1] Financial Performance - The company reported net sales of $4.6 billion for Q1 2025, a decline of 5.1% year over year, but exceeded the consensus estimate of $4.50 billion [3] - Comparable sales decreased by 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis [3] - Adjusted earnings were reported at 16 cents per share, surpassing the consensus of 14 cents [4] - Core adjusted EBITDA was $308 million, down from $363 million a year ago [4] Future Guidance - For fiscal 2025, Macy's has lowered its adjusted earnings per share guidance from $2.05-$2.25 to $1.60-$2.00, compared to the consensus of $1.93 [1] - The company maintained its sales guidance for 2025 at $21 billion-$21.4 billion, slightly below the consensus of $21.31 billion [1] - For Q2 2025, Macy's forecasts sales between $4.65 billion and $4.75 billion and adjusted earnings of 15 to 20 cents per share, compared to the consensus of $4.76 billion and 34 cents, respectively [5] Margin and Sales Trends - The gross margin remained flat at 39.2%, with improved merchandise margin offset by higher delivery expenses as a percentage of net sales [4] - Comparable sales for the go-forward business were down 1.8% on an owned basis and 0.9% on an owned-plus-licensed-plus-marketplace basis [4] - Bloomingdale's and Bluemercury reported positive sales growth, with Bloomingdale's net sales up 2.6% and Bluemercury's up 0.8% [6]

4Q24 Earnings March 6, 2025 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 management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this prese ...