Slide 1: 3Q24 Earnings
3Q24 Earnings December 11, 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: 3Q24 Performance Highlights
3Q24 Macy’s, Inc. Performance Highlights $4.7B 39.6% Net sales Gross margin rate1,3 42.1% $0.04 SG&A expense rate2 Adjusted Diluted Earnings Per Share (EPS)3 • First 50 Macy’s locations, Bloomingdale’s and Bluemercury delivered positive comparable sales growth.4 • Maintained effective expense contro
Slide 4: A Bold New Chapter
A Bold New Chapter Challenging the status quo to fundamentally reposition the company, enhance the customer experience, deliver growth and unlock shareholder value. Strengthen Accelerate Simplify & Modernize Macy’s Nameplate Luxury Growth End-to-End Operations A Bold New Chapter 4
Slide 5: Strengthen Macy's Nameplate
Strengthen Macy’s Nameplate
Slide 6: First 50 Locations
Strengthen Macy’s Nameplate First 50 Locations +1.9% Comparable O+L sales vs. +400 First 50 NPS year-over-year bps 3Q23, +410 bps vs. Macy’s improvement, third consecutive nameplate quarter of improvement +600 Women’s shoes sales1 year-over- bps +700 bps Handbags sales1 year-over-year year outperfor
Slide 7: 3Q24 Performance
Strengthen Macy’s Nameplate 3Q24 Performance -2.2% Macy’s comparable owned- +230 NPS year-over-year bps plus-licensed-plus- improvement, achieved marketplace (O+L+M) sales highest score ever vs. 3Q23 • Improving customer experience through merchandise revitalization and elevated colleague training p
Slide 8: Accelerate Luxury Growth
Accelerate Luxury Growth
Slide 9: Bloomingdale's
Accelerate Luxury Growth Bloomingdale’s +3.2% ~2B Comparable O+L+M sales1 From Italy, With Love vs. 3Q23 campaign media impressions • Return to positive comps driven by women’s advanced contemporary apparel, beauty and digital. • Added new brands, including SKIMS and Jenni Kayne. • Handbag category
Slide 10: Bluemercury
Accelerate Luxury Growth Bluemercury +3.3% Comparable owned sales 15th Consecutive quarter of vs. 3Q23 comparable sales growth • Expanded Sisley Paris, SkinMedica and Augustinus Bader and introduced Victoria Beckham Beauty. • 25th Anniversary celebration kicked off in September with the unveiling of
Slide 11: Simplify & Modernize End-to-End Operations
Simplify & Modernize End-to-End Operations
Slide 12: YTD Highlights
Simplify & Modernize End-to-End Operations YTD Highlights +800 bps Year-over-year speed of +800 bps Year-over-year speed of delivery improvement fulfillment improvement • Year-over-year merchandise inventories improved sequentially by 210 bps. • Phasing out legacy technology to improve customer expe
Slide 13: Holiday 2024
Holiday 2024 Across nameplates, developed exciting strategies with multiple consumer touchpoints and events. Holiday 2024 13
Slide 14: 3Q24 Financial Results and Capital Allocation
3Q24 Financial Results and Capital Allocation 14
Slide 15: Sales Highlights
3Q24 Financial Results and Capital Allocation Sales Highlights $4.7B -2.4% Net sales -2.4% vs 3Q23, Comparable owned sales vs 3Q23 digital penetration 30% -1.3% -0.9% Comparable O+L+M sales vs 3Q23 Go-forward Macy’s, Inc. business1 comparable O+L+M sales vs 3Q23 1 Defined as Macy’s, Bloomingdale’s a
Slide 16: Nameplate Highlights
3Q24 Financial Results and Capital Allocation Nameplate Highlights Results versus 3Q23 Net Sales -3.1% Comparable O+L+M Sales -2.2% Go-Forward Macy’s Business Comparable O+L+M Sales1 a -1.8% First 50 Locations Comparable O+L Sales +1.9% Net Sales +1.4% Comparable O+L+M Sales2 +3.2% Net Sales +3.2% C
Slide 17: Profitability & Productivity Highlights
3Q24 Financial Results and Capital Allocation Profitability & Productivity Highlights Actuals Change vs 3Q23 Other Revenue $161 -9.6% Credit Card Revenue $120 -15.5% Credit Card Penetration rate1 42.2% -200 bps Macy’s Media Network $41 +13.9% Total Revenue $4,903 -2.7% Gross Margin2 $1,878 -3.9% Gro
Slide 18: YTD Capital Allocation Highlights
3Q24 Financial Results and Capital Allocation YTD Capital Allocation Highlights $30M $649M Operating Cash Outflow Capital Expenditures $492M $144M Free Cash Outflow Dividend Payments Our Priorities Remain • Maintaining a healthy balance sheet, • Investing in long-term profitable growth initiatives,
Slide 19: Looking Ahead
Looking Ahead
Slide 20: 4Q24 Guidance
4Q24 Guidance As of December 11, 2024 The company is providing the following estimates for certain 4Q24 financial statement items For more information, refer to the appendix section of this presentation $7.8B to $8.0B $206M to $216M (Credit Card Revenues: $138M to $148M) Net Sales Other Revenue 35.3
Slide 21: FY24 Guidance
FY24 Guidance Revised as of December 11, 2024 The company is providing the following estimates for certain FY24 financial statement items For more information, refer to the appendix section of this presentation -1.0% to Flat -1.0% to Flat +2.0% to +2.5% $22.3B to $22.5B vs FY23 vs FY23 vs FY23 Compa
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Store Count as of 11/2/2024
Appendix Store Count as of 11/2/2024 End of 3Q24 Change In Locations from FY23 Locations Macy's Department Stores 435 — Macy's Small Format 24 +12 Macy's Furniture 43 -2 Macy's Furniture Clearance 1 — Freestanding Backstage 9 — Total Macy's 512 +10 Bloomingdale's Department Stores 32 — Bloomies 3 —
Slide 25: Long-term Debt Maturities as of 11/2/2024
Appendix Long-term Debt Maturities as of 11/2/2024 Note: % represents weighted average interest rate. All outstanding long-term debt is unsecured. The $6M of debt due 2025 is classified as short-term debt on the Consolidated Balance Sheet. Additional Information 25
Slide 26: 3Q24 Macy's Sales Highlights
Appendix 3Q24 Macy’s Sales Highlights Change vs 3Q23 Net Sales -3.1% Comparable O+L+M Sales -2.2% Go-Forward Macy’s Business Comparable O+L+M Sales1 -1.8% Go-Forward Macy’s Locations Comparable O+L Sales2 -1.2% First 50 Locations Comparable O+L Sales +1.9% Non-First 50 Go-Forward Macy’s Locations Co
Slide 27: 3Q24 Additional Sales Highlights
Appendix 3Q24 Additional Sales Highlights Actuals Change vs 3Q23 Macy’s Digital1 Digital visits 416M +0.4% Conversion rate 3.7% -20 bps Luxury Nameplates Digital Digital visits 74M +9.3% Conversion rate 2.5% Flat Backstage Comparable owned sales versus Macy’s full-line '+300 bps Bloomingdale’s the O
Slide 28: FY23 Nameplate Customer Highlights
Appendix 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 program member
Slide 29: FY24 Guidance as of 12/11/2024 and adjusted 8/21/2024 guidance
Appendix FY24 Guidance as of 12/11/2024 and adjusted FY24 guidance provided on 8/21/2024 The company is providing the following estimates for certain FY24 financial statement items, in addition to the adjusted 8/21/2024 FY24 guidance, that accounts for the $79 million FY24 delivery expense impact re
Slide 30: FY24 Guidance Assumptions as of 12/11/2024
Appendix FY24 Guidance Assumptions as of 12/11/2024 Housekeeping Items • The company's guidance incorporates the revised historical delivery expense and updated delivery expense expectations. The delivery expense accounting accrual entry error was unknown at the time of the company's previously issu
Slide 31: A Bold New Chapter
A Bold New Chapter FY24 will be 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 & distribution c
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 33: 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 34: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended November 2, 2024 versus 13 weeks ended October 28, 2023 Macy's, Inc. Macy's Decrease in comparable sales on an owned basis (Note 1) (2.4%) (3.0%) Impact of departments licensed to third parties and marketplace sales (Note 2) 1.1% 0.8% Decrease in comparable
Slide 35: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended November 2, 2024 versus 13 weeks ended October 28, 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) (2.0)% (2.6)% 1.0% 3.3% Impact of departments
Slide 36: 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 November 2, 2024 October 28, 2023 Most comparable GAAP measure: Total revenue $4,903 $5,038 Net income $28 $41 Net income as a percent to total revenue 0
Slide 37: EBITDA Excluding Certain Items (39 weeks)
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 39 weeks ended 39 weeks ended November 2, 2024 October 28, 2023 Most comparable GAAP measure: Total revenue $14,999 $15,491 Net income $240 $173 Net income as a percent to total reven
Slide 38: 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 November 2, 2024 October 28, 2023 Diluted Earnings Diluted Earnings Net Income Per Share Net Income Per Share As reported $28 $0.10 $41 $0.15 Impairment, restructuring
Slide 39: Free Cash Flow
Free Cash Flow Millions 39 weeks ended November 2, 2024 Net cash used by operating activities $(30) Purchase of property and equipment (399) Capitalized software (250) Disposition of property and equipment 187 Free Cash Flow $(492) Appendix 39