Slide 1: 2Q24 Earnings
2Q24 Earnings August 21, 2024
Slide 2: Safe Harbor Statement
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 manage
Slide 3: Encouraged by Macy's First 50 performance, delivered +1.0% comp sales growth
Encouraged by Macy’s First 50 performance, delivered +1.0% comp sales1 growth 1 Comparable owned-plus-licensed sales.
Slide 4: Performance Highlights
2Q24 Macy’s, Inc. Performance Highlights $4.9B 40.5% Net sales -3.8% vs 2Q23 Gross margin rate1, +240 bps vs 2Q23 38.7% $0.53 SG&A expense rate2, +120 bps vs Adjusted Diluted Earnings Per 2Q23 Share (EPS), +103.8% vs 2Q23 1 % of net sales. 2 % of total revenue. 4
Slide 5: Strengthen Macy's Nameplate
Strengthen Macy’s Nameplate
Slide 6: 2Q24 Performance
Strengthen Macy’s Nameplate 2Q24 Performance Encouraging green shoots in merchandising and First 50 locations -4.4% Net sales vs. 2Q23 -3.6% Comparable owned-plus- licensed-plus-marketplace (O+L+M) sales vs. 2Q23 Highlights • Ongoing strength in fragrances with green shoots in ready- to-wear. • Cust
Slide 7: First 50 Locations
Strengthen Macy’s Nameplate First 50 Locations Leading indicator of Go-Forward Macy’s growth First 50 Locations • Improve customer experience with focused staffing in shoes, handbags, women’s ready-to-wear, fitting rooms and check out. • Enhance merchandising by editing existing assortments and addi
Slide 8: First 50 Locations, cont.
Strengthen Macy’s Nameplate First 50 Locations, cont. Initiatives drove improvements in category performance, customer experience, traffic and conversion Customer Experience +600 bps First 50 NPS year-over-year +200 bps First 50 NPS compared to other improvement. Go-Forward locations. Category Perfo
Slide 9: Rationalize Store Base
Strengthen Macy’s Nameplate Rationalize Store Base Monetizing Non-Go-Forward locations Overview • Non-Go-Forward locations are valuable real estate assets. • Pleased with the pace and quality of deal-making. • Evaluating all opportunities, executing accretive deals. Planned Macy’s Store Closures ~55
Slide 10: Strengthen Macy's Nameplate
Strengthen Macy’s Nameplate
Slide 11: Accelerate Luxury Growth
Accelerate ——4A Luxury Growth ‘ . $b) eee ==3 sag co
Slide 12: Bloomingdale's
Accelerate Luxury Growth Bloomingdale’s Highlights -0.2% Net sales vs. 2Q23 -1.4% Comparable O+L+M sales1 vs. 2Q23 • Customers responded well to advanced contemporary apparel brands including Veronica Beard, Alice and Olivia, L'AGENCE and Farm Rio. • AQUA collaboration with Venus Williams in June wa
Slide 13: Bluemercury
Accelerate Luxury Growth Bluemercury Highlights +1.7% +2.0% Net sales vs. 2Q23 Comparable owned sales vs. 2Q23 • 14th consecutive quarter of comparable sales growth, driven by continued strength in skincare. • Added new brands, including Dr. Diamonds Metacine, and expanded fragrance offering with la
Slide 14: Accelerate Luxury Growth
Accelerate -—-—q Luxury Growth Wie: | CF
Slide 15: Simplify & Modernize End-to-End Operations
Simplify & Modernize End-to-End Operations
Slide 16: Confident in the Bold New Chapter strategy, committed to improving business fundamentals
Confident in the Bold New Chapter strategy, committed to improving business fundamentals
Slide 17: 2Q24 Financial Results and Capital Allocation
2Q24 Financial Results and Capital Allocation 17
Slide 18: Leaning into cost savings and working capital discipline
Leaning into cost savings and working capital discipline, while making targeted investments
Slide 19: Sales Highlights
2Q24 Financial Results and Capital Allocation Sales Highlights $4.9B -4.0% Net sales -3.8% vs 2Q23 Comparable owned sales vs 2Q23 -3.3% -3.0% Comparable O+L+M sales vs 2Q23 Go-forward Macy’s, Inc. business1 comparable O+L+M sales vs 2Q23 1 Defined as Macy’s, Bloomingdale’s and Bluemercury Go-Forward
Slide 20: Nameplate Highlights
2Q24 Financial Results and Capital Allocation Nameplate Highlights Results versus 2Q23 Net Sales -4.4% Comparable O+L+M Sales -3.6% Go-Forward Macy’s Business Comparable O+L+M Sales1 -3.3% Go-Forward Macy’s Locations Comparable O+L Sales2 -2.3% Macy’s First 50 Locations Comparable O+L Sales +1.0% No
Slide 21: Nameplate Highlights, cont.
2Q24 Financial Results and Capital Allocation Nameplate Highlights, cont. Results versus 2Q23 Net Sales -0.2% Comparable O+L+M Sales1 -1.4% Net Sales +1.7% Comparable Owned Sales +2.0% 1Excludes one Non-Go-Forward location. 2Q24 Financial Results and Capital Allocation 21
Slide 22: Other Revenue Highlights
2Q24 Financial Results and Capital Allocation Other Revenue Highlights $125M $159M Credit card revenue net +4.2% vs 2Q23 $34M Other revenue +6.0% vs 2Q23 Macy’s Media Network revenue net +13.3% vs 2Q23 2Q24 Financial Results and Capital Allocation 22
Slide 23: Profitability & Productivity Highlights
2Q24 Financial Results and Capital Allocation Profitability & Productivity Highlights Actuals Change vs 2Q23 Total Revenue $5,096 -3.5% Gross Margin $1,999 +2.3% Gross Margin Rate1 40.5% +240 bps SG&A Expense $1,973 -0.4% SG&A Expense Rate2 38.7% +120 bps EBIT $226 +3666.7% Adjusted EBIT $225 +70.5%
Slide 24: YTD Capital Allocation Highlights
2Q24 Financial Results and Capital Allocation YTD Capital Allocation Highlights $137M $432M Operating Cash Flow Capital Expenditures $244M $96M Free Cash Outflow Dividend Payments 2Q24 Financial Results and Capital Allocation 24
Slide 25: Real Estate Monetization
2Q24 Financial Results and Capital Allocation Real Estate Monetization Overview • Committed to monetizing Non-Go-Forward assets and certain distribution centers, only at the right value. • Pleased with traction experienced to-date with landlords and developers. • Encouraged by the progress seasoned
Slide 26: Looking Ahead
Looking Ahead
Slide 27: FY24 Guidance
FY24 Guidance Revised as of August 21, 2024 The company is providing the following estimates for certain FY24 financial statement items: -2.0% to -0.5% -1.5% to Flat +0.5% to +2.0% $22.1B to $22.4B vs FY23 vs FY23 vs FY23 Comparable Macy’s Go-Forward1 Luxury Nameplates2 Net Sales O+L+M Sales Compara
Slide 28: 3Q24 Guidance
3Q24 Guidance As of August 21, 2024 The company is providing the following estimates for certain 3Q24 financial statement items: $4.7B to $4.82B $152M (Credit Card Revenues: $110M) Net Sales Other Revenue Up mid-single-digits 40.3% to 40.5% -$0.04 to $0.01 vs 3Q23 Gross Margin Rate1 Adjusted Diluted
Slide 29: Committed to the Bold New Chapter strategy, designed to deliver profitable sales growth
Committed to the Bold New Chapter strategy, designed to deliver profitable sales growth
Slide 30: Q&A
Q&A
Slide 31: Additional Information
&é * if Additional Information
Slide 32: Store Count as of 8/3/2024
Additional Information Store Count as of 8/3/2024 End of 2Q24 Change In Locations from FY23 Locations Macy's Department Stores 435 — Macy's Small Format 18 +6 Macy's Furniture 43 -2 Macy's Furniture Clearance 1 — Freestanding Backstage 9 — Total Macy's 506 +4 Bloomingdale's Department Stores 32 — Bl
Slide 33: Long-term Debt Maturities as of 8/3/2024
Additional Information Long-term Debt Maturities as of 8/3/2024 % represents weighted average interest rate. All outstanding long-term debt is unsecured. Additional Information 33
Slide 34: 2Q24 Additional Nameplate Highlights
Additional Information 2Q24 Additional Nameplate Highlights Actuals Change vs 2Q23 Macy’s Digital1 Digital visits 450M +0.7% Conversion rate 3.6% -30 bps Luxury Nameplates Digital Digital visits 70M +3.1% Conversion rate 2.5% +5 bps 1 Macys.com visits and conversion metrics may be restated to exclud
Slide 35: 2Q24 Additional Nameplate Highlights, cont.
Additional Information 2Q24 Additional Nameplate Highlights, cont. Performance vs 2Q23 Backstage Comparable owned sales versus Macy’s full-line +470 bps Bloomingdale’s the Outlet Comparable owned-plus-licensed sales versus Bloomingdale’s full-line +170 bps Additional Information 35
Slide 36: FY23 Nameplate Customer Highlights
Additional Information FY23 Nameplate Customer1 Highlights Actuals Macy’s Active customers 41.2M Star Rewards active member accounts 30.1M Star Rewards program members % of Macy’s comparable O+L+M sales 73% Bloomingdale’s Active customers 4.0M Loyallist program active member accounts 2.4M Loyallist
Slide 37: 2Q24 Financial Highlights & Commentary
Additional Information 2Q24 Financial Highlights & Commentary Actuals Change Commentary vs 2Q23 Net Sales $4,937 -3.8% Digital penetration of net sales was 29%. Owned AUR increased 3.6%, driven by Comparable owned sales -4.0% improvements across all nameplates. Comparable O+L+M sales -3.3% Other Rev
Slide 38: 2Q24 Financial Highlights & Commentary
1 Additional Information 2Q24 Financial Highlights & Commentary Actuals Change Commentary vs 2Q23 EBIT $226 +3666.7% Adjusted EBITDA and Adjusted Diluted EPS benefited from efficiencies and expense discipline throughout the organization and an earlier-than-expected non-go-forward asset sale gain. Ad
Slide 39: 1H24 Financial Highlights
Additional Information 1H24 Financial Highlights Actuals Change Actuals Change vs 1H23 vs 1H23 Net Sales $9,783 -3.3% EBIT $354 +39.4% Comparable owned sales -2.6% Adjusted EBIT $373 -2.4% Comparable O+L+M sales -1.8% Adjusted EBIT Margin Rate2 3.7% flat Other Revenue $313 -8.2% EBITDA $783 +14.0% C
Slide 40: FY24 Guidance
Additional Information FY24 Guidance The company is providing the following estimates for certain FY24 financial statement items: FY24 Guidance FY24 Guidance (as of 8/21/2024, bold captions indicate a change) (as of 5/21/2024) Net sales $22.1 billion to $22.4 billion $22.3 billion to $22.9 billion C
Slide 41: FY24 Guidance Assumptions as of 8/21/2024
Additional Information FY24 Guidance Assumptions as of 8/21/2024 Housekeeping Items • The company’s FY24 guidance reflects a more discriminating consumer and heightened promotional environment relative to its prior expectations. The company believes the outlook range provided gives the flexibility t
Slide 42: A Bold New Chapter Strategy
A Bold New Chapter Strategy FY24 is a transition and investment year. Close ~150 Underperforming Macy’s Locations Reprioritize investments in remaining ~350 locations1 FY24 - FY26 Grow Luxury2 Store Locations by ~20% Actions Asset Monetization $600M to $750M3 Primarily related to stores & distributi
Slide 43: 2025 & Beyond
A Bold New Chapter Targets 2025 & Beyond Low-Single-Digit Mid-Single-Digit Annual Comparable O+L+M Sales Growth1 Annual Adjusted EBITDA Dollar Growth Below Historic Rate of Return to Below FY24 Levels Inflation of 2% to 3% Pre-Pandemic Levels Annual SG&A Dollar Growth Annual Capital Expenditures Ann
Slide 44: Appendix
Appendix
Slide 45: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non- GAAP financial measures provide users of the company's financial information with ad
Slide 46: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended August 3, 2024 versus 13 weeks ended July 29, 2023 Macy's, Inc. Macy's Decrease in comparable sales on an owned basis (Note 1) (4.0%) (4.5%) Impact of departments licensed to third parties and marketplace sales (Note 2) 0.7% 0.9% Decrease in comparable sale
Slide 47: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended August 3, 2024 versus 13 weeks ended July 29, 2023 Macy's, Inc. Go- Macy's Go-Forward Bloomingdale's* Bluemercury Forward business business Increase (decrease) in comparable sales on an owned basis (Note 1) (3.8)% (4.3)% (1.1%) 2.0% Impact of departments li
Slide 48: Changes in Comparable Sales
Changes in Comparable Sales 26 weeks ended August 3, 2024 versus 26 weeks ended July 29, 2023 Macy's, Inc. Decrease in comparable sales on an owned basis (Note 1) (2.6)% Impact of departments licensed to third parties and marketplace sales (Note 2) 0.8% Decrease in comparable sales on an owned-plus-
Slide 49: EBITDA Excluding Certain Items (13 weeks)
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 13 weeks ended 13 weeks ended August 3, 2024 July 29, 2023 Most comparable GAAP measure: Total revenue $5,096 $5,280 Net income (loss) $150 $(22) Net income (loss) as a percent to tot
Slide 50: EBITDA Excluding Certain Items (26 weeks)
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 26 weeks ended 26 weeks ended August 3, 2024 July 29, 2023 Most comparable GAAP measure: Total revenue $10,096 $10,453 Net income $212 $133 Net income as a percent to total revenue 2.
Slide 51: Net Income and Diluted EPS, Excluding Certain Items
Net Income and Diluted Earnings Per Share, Excluding Certain Items Millions, except per share figures 13 weeks ended 13 weeks ended August 3, 2024 July 29, 2023 Diluted Earnings Diluted Earnings Net Income Per Share Net Income (Loss) (Loss) Per Share As reported $150 $0.53 $(22) $(0.08) Impairment,
Slide 52: Free Cash Flow
Free Cash Flow Millions 26 weeks ended August 3, 2024 Net cash provided by operating activities $137 Purchase of property and equipment (271) Capitalized software (161) Disposition of property and equipment 51 Free Cash Flow $(244) Appendix 52