Slide 1: 4Q24 Earnings
macys inc yemaoys bmingdoles. — BLUEMERCURY — Earnings. March 6, 2025
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 management and
Slide 3: FY24 Macy's, Inc. Performance Highlights
FY24 Macy’s, Inc. Performance Highlights +510 bps $1.3B To -0.9%. Comparable Ending FY24 Cash Owned-Plus-Licensed-Plus- Marketplace (O+L+M) Sales Trend Improvement vs. FY23 • Macy's First 50 locations achieved four consecutive quarters of positive comparable sales growth. • Returned to positive annu
Slide 4: 4Q24 Macy's, Inc. Performance Highlights
4Q24 Macy’s, Inc. Performance Highlights +0.2% $1.80 Comparable O+L+M Sales Adjusted Diluted Earnings vs. 4Q23 Per Share (EPS) • Best comparable O+L+M performance in 11 quarters. • Maintained a disciplined approach to margins and cost controls. • Adjusted Diluted EPS benefited from better-than- expe
Slide 5: Year One Highlights
Year One Highlights
Slide 6: Strengthen & Reimagine Macy's Nameplate
Strengthen & Reimagine Macy’s Nameplate 4Q24 -0.9% Macy’s Comparable O+L+M +1.2% Macy’s First 50 Comparable Sales vs. 4Q23, +380 bps vs. O+L Sales vs. 4Q23, Fourth 4Q23 Consecutive Quarter of Growth FY24 • Closed 64 out of ~150 underproductive Macy’s non-go- forward locations, ahead of FY24 plan for
Slide 7: Accelerate & Differentiate: Bloomingdale's
Accelerate & Differentiate Bloomingdale’s 4Q24 +6.5% ~15B Comparable O+L+M Sales Wicked Holiday Campaign vs. 4Q23, Strongest 4Q Media Impressions Volume in History FY24 • Returned to positive annual comps, +2.5% vs. FY23. • Opened 3 new locations. • Achieved record annual NPS, +90 bps vs. FY23. Year
Slide 8: Accelerate & Differentiate: Bluemercury
Accelerate & Differentiate Bluemercury 4Q24 +6.2% Comparable Owned Sales 16th Consecutive Quarter of vs. 4Q23 Comparable Sales Growth FY24 • Fourth consecutive year of positive comps, +4.0% vs. FY23. • Opened 17 new locations and remodeled 7. Year One Highlights 8
Slide 9: Simplify & Modernize: End-to-End Operations
Simplify & Modernize End-to-End Operations FY24 +400 FY24 Speed of Delivery bps +420 FY24 In-Stock Replenishment bps Improvement1 vs. FY23 Improvement2 vs. FY23 • Improved FY24 speed of fulfillment3 by 1100 bps vs. FY23. • China Grove distribution center on track to open in mid- 2025. The facility w
Slide 10: Year Two Expectations
Year Two Expectations
Slide 11: Strengthen & Reimagine Macy's Nameplate
Strengthen & Reimagine Macy’s Nameplate Stores • Focused on go-forward growth through a smaller, more productive store fleet. Improving omnichannel customer shopping experience, building on year one learnings. • Expanded First 50 initiatives to an additional 75 stores, total Macy’s Reimagine 125 loc
Slide 12: Accelerate & Differentiate: Luxury
Accelerate & Differentiate Luxury Bloomingdale’s • Recently introduced White Lotus x AQUA collaboration and Flamingo Estate carousel. Partnerships serve as strong traffic drivers and increase brand awareness. • AQUA's collaborations showcase Bloomingdale's relevancy in the marketplace and multi-gene
Slide 13: 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 & Reimagine Accelerate & Differentiate Simplify & Modernize Macy’s Nameplate Luxury End-to-End Operations A Bold New Chapter
Slide 14: 4Q24 & FY24 Financial Results & Capital Allocation
4Q24 & FY24 Financial Results & Capital Allocation 14
Slide 15: 4Q24 Sales Highlights
4Q24 & FY24 Financial Results & Capital Allocation 4Q24 Sales Highlights Net sales vs.14-week 4Q23, comps vs. 13-week 4Q23 $7.8B -1.1% Net Sales -4.3% vs. 4Q23 Comparable Owned Sales vs. 4Q23 +0.2% +0.6% Comparable O+L+M Sales vs. Go-forward Business1 Comparable 4Q23 O+L+M Sales vs. 4Q23 NOTE: 4Q24
Slide 16: 4Q24 Nameplate Highlights
4Q24 & FY24 Financial Results & Capital Allocation 4Q24 Nameplate Highlights Net sales vs.14-week 4Q23, comps vs. 13-week 4Q23 Net Sales -5.3% Comparable O+L+M Sales -0.9% Go-Forward Macy’s Business Comparable O+L+M Sales1 a -0.5% First 50 Locations Comparable O+L Sales +1.2% Net Sales +2.0% Compara
Slide 17: 4Q24 Profitability & Productivity Highlights
4Q24 & FY24 Financial Results & Capital Allocation 4Q24 Profitability & Productivity Highlights Actuals Change vs. 4Q23 Other Revenue $239 -6.3% Credit Card Revenue $175 -10.3% Credit Card Penetration rate 39.9% -160 bps Macy’s Media Network $64 +6.7% Total Revenue $8,007 -4.4% Gross Margin $2,777 -
Slide 18: FY24 Capital Allocation Highlights
4Q24 & FY24 Financial Results and Capital Allocation FY24 Capital Allocation Highlights $1.3B $882M Operating Cash Inflow, Capital Expenditures, -2.1% vs. FY23 -11.2% vs. FY23 $679M $192M Free Cash Flow, 5% Annual Per Share +70.6% vs. FY23 Dividend Increase 4Q24 & FY24 Financial Results and Capital
Slide 19: Looking Ahead
Looking Ahead
Slide 20: Capital Allocation Priorities
Capital Allocation Priorities 1 Maintaining a healthy balance sheet, driving working capital efficiencies • FY24 debt-to-adjusted-EBITDAR ratio of 2.5x, aligned to long-term year-end ratio target of 2.5x or below. 2 Strategically investing in growth initiatives while lowering capital expenditures •
Slide 21: FY25 Guidance
FY25 Guidance Go-Forward Business1 Comparable O+L+M sales and Core Adjusted EBITDA2 are the best proxy for the company’s future state. The company is providing the following estimates for certain FY25 financial statement items, as of March 6, 2025 For more information, refer to the appendix section
Slide 22: 1Q25 Guidance
1Q25 Guidance The company is providing the following estimates for certain 1Q25 financial statement items, as of March 6, 2025 For more information, refer to the appendix section of this presentation $4.4B to $4.5B -4.5% to -2.5% Net Sales Comparable O+L+M Sales 6.4% to 6.6% $0.12 to $0.15 Core Adju
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Store Count as of 2/1/2025
Appendix Store Count as of 2/1/2025 End of 4Q24 Change In Locations from FY23 Locations Macy's Department Stores 390 -45 Macy's Small Format 20 8 Macy's Furniture 34 -11 Macy's Furniture Clearance 1 — Freestanding Backstage1 5 -4 Total Macy's 450 -52 Bloomingdale's Department Stores 31 -1 Bloomies 4
Slide 26: Long-term Debt Maturities as of 2/1/2025
Appendix Long-term Debt Maturities as of 2/1/2025 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. 26 Appendix
Slide 27: 4Q24 Macy's Sales Highlights
Appendix 4Q24 Macy’s Sales Highlights Net sales vs.14-week 4Q23, comps vs. 13-week 4Q23 Change vs. 4Q23 Net Sales -5.3% Comparable O+L+M Sales -0.9% Go-Forward Macy’s Business Comparable O+L+M Sales1 -0.5% Go-Forward Macy’s Locations Comparable O+L Sales2 -1.6% First 50 Locations Comparable O+L Sale
Slide 28: 4Q24 Additional Sales Highlights
Appendix 4Q24 Additional Sales Highlights Actuals Change vs. 4Q23 Macy’s Digital1 Digital visits 723M -2.1% Conversion rate 4.2% 10 bps Luxury Nameplates Digital Digital visits 95M +3.2% Conversion rate 3.1% 20 bps Backstage Comparable owned sales versus Macy’s full-line +470 bps Bloomingdale’s the
Slide 29: FY24 Financial Highlights
Additional Information FY24 Financial Highlights1 Actuals Change Actuals Change vs FY23 vs FY23 Net Sales $22,293 -3.5% SG&A Expense $8,330 -0.5% Comparable owned sales2 SG&A Expense Rate5 36.2% +110 bps -2.0% Comparable O+L+M sales2 EBITDA6 -0.9% $1,760 63.7% Go-forward Business3 Comparable O+L+M S
Slide 30: FY25 Guidance as of 3/6/2025
Appendix FY25 Guidance as of 3/6/2025 The company is providing the following estimates for certain FY25 financial statement items. Refer to the following guidance assumptions slide for more details. As of 3/6/2025 Net sales $21.0 billion to $21.4 billion Comparable O+L+M sales Down ~2.0% to down ~0.
Slide 31: FY25 Guidance Assumptions as of 3/6/2025
Appendix FY25 Guidance Assumptions as of 3/6/2025 General Considerations • Macy's, Inc. is taking a prudent approach to its FY25 guidance, reflecting the external uncertainties the company and its customers are facing. • On a quarterly basis, the company does not expect its results to be linear as t
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 February 1, 2025 Macy's, Inc. Macy's Decrease in comparable sales on an owned basis (Note 1) -1.1% -1.9% Impact of departments licensed to third parties and marketplace sales (Note 2) 1.3% 1.0% Increase (decrease) in comparable sales on an owned-plus-licens
Slide 35: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended February 1, 2025 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) -0.7% -1.6% 4.8% 6.2% Impact of departments licensed to third parties and marketplace
Slide 36: Changes in Comparable Sales
Changes in Comparable Sales 52 weeks ended February 1, 2025 Macy's, Inc. Macy's Decrease in comparable sales on an owned basis (Note 1) -2.0% -2.6% Impact of departments licensed to third parties and marketplace sales (Note 2) 1.1% 1.0% Decrease in comparable sales on an owned-plus-licensed-plus-mar
Slide 37: Changes in Comparable Sales
Changes in Comparable Sales 52 weeks ended February 1, 2025 Macy's, Inc. Go- Macy's Go-Forward Bloomingdale's Bluemercury Forward business business Increase (decrease) in comparable sales on an -1.7 % -2.4 % 1.7% 4.0% owned basis (Note 1) Impact of departments licensed to third parties 1.1% 1.1% 0.8
Slide 38: EBITDA Excluding Certain Items
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 13 weeks ended 14 weeks ended February 1, 2025 February 3, 2024 Most comparable GAAP measure: Total revenue $8,007 $8,375 Net income (loss) $342 $(128) Net income as a percent to tota
Slide 39: EBITDA Excluding Certain Items and Core Adjusted EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items and Core Adjusted EBITDA Millions, except percentages 52 weeks ended 53 weeks ended February 1, 2025 February 3, 2024 Most comparable GAAP measure: Total revenue $23,006 $23,866 Net income $582 $45 Net income as
Slide 40: 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 14 weeks ended February 1, 2025 February 3, 2024 Diluted Earnings Diluted Earnings Net Income Per Share Net Income (Loss) (Loss) Per Share As reported $342 $1.21 $(128) $(0.47) Impair
Slide 41: Free Cash Flow
Free Cash Flow Millions 52 weeks ended February 1, 2025 Net cash provided by operating activities $1,278 Purchase of property and equipment (518) Capitalized software (364) Proceeds from disposition of assets, net 283 Free Cash Flow $679 Reconciliation of GAAP to Non-GAAP Financial Measures 41