Slide 1: 1Q24 Earnings
macys inc macys blaamingcale's = BLUEMERCURY 1Q24 Earnings May 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: Reading and reacting to the dynamic economic environment and competitive landscape
Reading and reacting to the dynamic economic environment and competitive landscape 3
Slide 4: A Bold New Chapter
A Bold New Chapter Three-year plan to return Macy’s, Inc. to profitable growth. Strengthen Accelerate Simplify & Modernize Macy’s Nameplate Luxury Growth End-to-End Operations A Bold New Chapter 4
Slide 5: Focused on understanding and meeting our customers' evolving needs and preferences
Focused on understanding and meeting our customers’ evolving needs and preferences 5
Slide 6: Strengthen Macy's Nameplate
Strengthen Macy’s Nameplate 6
Slide 7: First 50 Locations
Strengthen Macy’s Nameplate First 50 Locations Delivered positive comps Overview • First 50 are: • A key component of the Macy’s turnaround; and • A leading indicator for remaining go-forward store fleet. • They serve as: • Pilots for new product, visual and staffing initiatives; and • Have broad ge
Slide 8: Revitalize Assortment
Strengthen Macy’s Nameplate Revitalize Assortment Offering newness across categories Category Highlights • Introduced and expanded distribution in several market brands to address areas of softness in both women’s and men’s assortments. • Better-than-expected accessories performance, led by women’s
Slide 9: Digital Advancements
Strengthen Macy’s Nameplate Digital Advancements Gateway to Macy’s brand, source of omni-engagement Highlights • Under new leadership, team has made progress on: • Optimizing the customer journey; • Addressing places of greatest friction; and • Enhancing and expanding the shopping experience across
Slide 10: Leveraging iconic events to modernize and elevate the omni-channel experience
Leveraging iconic events to modernize and elevate the omni-channel experience
Slide 11: Accelerate Luxury Growth
Accelerate Luxury Growth
Slide 12: Bloomingdale's
Accelerate Luxury Growth Bloomingdale’s Highlights +0.3% Comparable owned-plus- ~15 Bloomie’s and licensed-plus-marketplace Bloomingdale’s the Outlet (O+L+M) sales1 vs. 1Q23 openings through FY26 • Contemporary apparel, private brands and beauty continue to be well-received and serve as growth engin
Slide 13: Bluemercury
Accelerate Luxury Growth Bluemercury Highlights +4.3% Comparable owned sales vs. at least 30 New locations and ~30 1Q23 remodels through FY26 • 13th consecutive quarter of comparable sales growth, driven by continued strength in skincare. • Expanding key brand partners including Sisley Paris, Skince
Slide 14: A Bold New Chapter Targets
On-Track to Achieve A Bold New Chapter Targets 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
Slide 15: Improving customer experience through collaboration, efficiency and speed
Improving customer experience through collaboration, efficiency and speed 15
Slide 16: 1Q24 Financial Results and Capital Allocation
1Q24 Financial Results and Capital Allocation 16
Slide 17: Sales Highlights
1Q24 Financial Results and Capital Allocation Sales Highlights $4.8B -1.2% Net sales -2.7% vs 1Q23 Comparable owned sales vs 1Q23 -0.3% +0.1% Comparable O+L+M sales vs 1Q23 Go-forward Macy’s, Inc. business1 comparable O+L+M sales vs 1Q23 1 Defined as Macy’s, Bloomingdale’s and Bluemercury go-forward
Slide 18: Nameplate Highlights
1Q24 Financial Results and Capital Allocation Nameplate Highlights Results versus 1Q23 Net Sales -3.3% Comparable O+L+M Sales -0.4% Flat Go-Forward Macy’s Business Comparable O+L+M Sales1 Go-Forward Macy’s Locations Comparable O+L Sales2 +0.1% Macy’s First 50 Locations Comparable O+L Sales +3.4% Non
Slide 19: Nameplate Highlights, cont.
1Q24 Financial Results and Capital Allocation Nameplate Highlights, cont. Results versus 1Q23 Net Sales +0.5% Comparable O+L+M Sales1 +0.3% Net Sales +4.0% Comparable Owned Sales +4.3% 1Excludes one non-go-forward location. 1Q24 Financial Results and Capital Allocation 19
Slide 20: Revenue Highlights
1Q24 Financial Results and Capital Allocation Revenue Highlights $154M $117M Other revenue -19.4% vs 1Q23 Credit card revenue net -27.8% vs 1Q23 $37M Macy’s Media Network revenue net +27.6% vs 1Q23 1Q24 Financial Results and Capital Allocation 20
Slide 21: Profitability & Productivity Highlights
1Q24 Financial Results and Capital Allocation Profitability & Productivity Highlights Actuals Change vs 1Q23 Total Revenue $5,000 -3.3% Gross Margin $1,900 -4.7% Gross Margin Rate1 39.2% -80 bps SG&A Expense $1,911 -2.0% SG&A Expense Rate2 38.2% +50 bps EBIT $129 -48.0% Adjusted EBIT $148 -40.8% Adj
Slide 22: YTD Highlights
1Q24 Financial Results and Capital Allocation YTD Highlights $129M $229M Operating Cash Flow Capital Expenditures $96M $48M Free Cash Outflow Dividend Payments 1Q24 Financial Results and Capital Allocation 22
Slide 23: Looking Ahead
Looking Ahead 23
Slide 24: FY24 Guidance
FY24 Guidance Revised as of May 21, 2024 -1.0% to +1.5% ~Flat to +2.5% ~Flat to +2.5% $22.3B to $22.9B vs FY23 vs FY23 vs FY23 Comparable Macy’s Go-Forward2 Luxury Nameplates3 Net Sales O+L+M Sales1 Comparable O+L+M Sales Comparable O+L+M Sales ~$665M to $680M ~39.0% to 39.3% 8.7% to 9.0% $2.55 to $
Slide 25: 2Q24 Guidance
2Q24 Guidance As of May 21, 2024 $4.97B to $5.1B ~$155M (Credit Card Revenues: ~$120M) Net Sales Other Revenue Up at least Up Low-Single-Digits 170 bps vs 2Q23 $0.25 to $0.33 vs 2Q23 Gross Margin Rate1 Adjusted Diluted EPS2 Inventory NOTE: The company’s outlook excludes any potential impact from the
Slide 26: 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 27: Q&A
Q&A
Slide 28: Additional Information
Additional Information =r Y oF W4 the
Slide 29: Store Count as of 5/4/2024
Additional Information Store Count as of 5/4/2024 End of 1Q24 Change In Locations from FY23 Locations Macy's Department Stores 435 — Macy's Small Format 13 +1 Macy's Furniture 45 — Macy's Furniture Clearance 1 — Freestanding Backstage 9 — Total Macy's 503 +1 Bloomingdale's Department Stores 32 — Blo
Slide 30: Long-term Debt Maturities as of 5/4/2024
Additional Information Long-term Debt Maturities as of 5/4/2024 % represents weighted average interest rate. All outstanding long-term debt is unsecured. Additional Information 30
Slide 31: 1Q24 Additional Nameplate Highlights
Additional Information 1Q24 Additional Nameplate Highlights Actuals Change vs 1Q23 Macy’s Digital1 Digital visits 476M +2.3% Conversion rate 3.6% -14 bps Luxury Nameplates Digital Digital visits 74M +0.3% Conversion rate 2.4% +10 bps 1 Macys.com visits and conversion metrics may be restated to exclu
Slide 32: 1Q24 Additional Nameplate Highlights, cont.
Additional Information 1Q24 Additional Nameplate Highlights, cont. Performance vs 1Q23 Backstage Comparable owned sales versus Macy’s full-line +980 bps Bloomingdale’s the Outlet Comparable owned-plus-licensed sales versus Bloomingdale’s full-line +380 bps Additional Information 32
Slide 33: 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 34: 1Q24 Financial Highlights & Commentary
Additional Information 1Q24 Financial Highlights & Commentary Actuals Change Commentary vs 1Q23 Net Sales $4,846 -2.7% Digital penetration of net sales was 32%. Owned AUR increased 4%, driven by improvements Comparable owned sales -1.2% across all nameplates. Comparable O+L+M sales -0.3% Other Reven
Slide 35: 1Q24 Financial Highlights & Commentary
Additional Information 1Q24 Financial Highlights & Commentary Actuals Change Commentary vs 1Q23 EBIT $129 -48.0% Adjusted EBITDA and Adjusted Diluted EPS benefited from efficiencies and expense discipline throughout the organization. Adjusted EPS of $0.27 exceeded our prior outlook of Adjusted EBIT
Slide 36: FY24 Guidance
Additional Information FY24 Guidance FY24 Guidance FY24 Guidance (as of 5/21/2024, bold captions indicate a change) (as of 2/27/2024) Net sales $22.3 billion to $22.9 billion $22.2 billion to $22.9 billion Comparable O+L+M sales Down ~1.0% to up ~1.5% vs FY23 Down ~1.5% to up ~1.5% vs FY23 Go-forwar
Slide 37: FY24 Guidance Assumptions as of 5/21/2024
Additional Information FY24 Guidance Assumptions as of 5/21/2024 Housekeeping Items • The company’s outlook does not assume an improvement in the consumer’s health and that they will continue to scrutinize discretionary purchases. • FY24 is a 52-week period while FY23 was a 53-week period. The FY24
Slide 38: Appendix
Appendix ,;
Slide 39: 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 40: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended May 4, 2024 versus 13 weeks ended April 29, 2023 Macy's, Inc. Macy's Decrease in comparable sales on an owned basis (Note 1) (1.2%) (1.6%) Impact of departments licensed to third parties and marketplace sales (Note 2) 0.9% 1.2% Decrease in comparable sales
Slide 41: Changes in Comparable Sales
Changes in Comparable Sales 13 weeks ended May 4, 2024 versus 13 weeks ended April 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) (0.9)% (1.3)% 0.8% 4.3% Impact of departments licens
Slide 42: Earnings Before Interest and Taxes, Excluding Certain Items
Earnings Before Interest and Taxes, Excluding Certain Items Millions, except percentages 13 weeks ended 13 weeks ended May 4, 2024 April 29, 2023 Most comparable GAAP measure: Net income $62 $155 Total revenue $5,000 $5,173 Net income as a percent to total revenue 1.2% 3.0% Non-GAAP measure: Net inc
Slide 43: EBITDA Excluding Certain Items
Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 13 weeks ended 13 weeks ended May 4, 2024 April 29, 2023 Most comparable GAAP measure: Net income $62 $155 Total revenue $5,000 $5,173 Net income as a percent to total revenue 1.2% 3.
Slide 44: Net Income and Diluted Earnings Per Share, Excluding Certain Items
Net Income and Diluted Earnings Per Share, Excluding Certain Items Millions 13 weeks ended 13 weeks ended May 4, 2024 April 29, 2023 Diluted Earnings Diluted Earnings Net Income Per Share Net Income Per Share As reported $62 $0.22 $155 $0.56 Impairment, restructuring and other costs 19 0.07 2 — Inco
Slide 45: Free Cash Flow
Free Cash Flow Millions 13 weeks ended May 4, 2024 Net cash provided by operating activities $129 Purchase of property and equipment (154) Capitalized software (75) Disposition of property and equipment 4 Free Cash Flow $(96) Appendix 45