Macy's, Inc. Reports First Quarter 2025 Results

Net sales exceeded guidance; Reaffirmed annual net sales guidance

GAAP diluted EPS of $0.13; Adjusted diluted EPS of $0.16 surpassed guidance

Macy's Reimagine 125 stores outperformed Macy's fleet

Bloomingdale's and Bluemercury delivered consistent positive comps

Macy's, Inc. (NYSE:M) today reported financial results for the first quarter of 2025 and updated its annual guidance.

First Quarter Highlights

• Macy's, Inc. achieved net sales of $4.6 billion, exceeding the company's prior guidance range.
• Macy's, Inc. comparable sales were down 2.0% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis, surpassing the company's prior guidance range, benefiting from better than expected performance across all nameplates.
• The company reported GAAP diluted earnings per share of $0.13; Adjusted diluted earnings per share of $0.16, above the company's prior guidance range.
• Bloomingdale's reported comparable sales growth on an owned and owned-plus-licensed-plus-marketplace basis of 3.0% and 3.8%, respectively.
• Bluemercury reported comparable sales growth of 1.5%, its 17th consecutive quarter of comparable sales growth.
• The company returned approximately $152 million to shareholders, consisting of $51 million in quarterly cash dividends and $101 million of share repurchases.

"We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates," said Tony Spring, chairman and chief executive officer of Macy's, Inc. "Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy's, Inc. to sustainable profitable growth."

First Quarter Results (comparisons are to the first quarter of 2024)

Macy's, Inc. net sales decreased 5.1%¹ inclusive of store closures to $4.6 billion, with comparable sales down 2.0% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis. Comparable owned-plus-licensed-plus-marketplace sales reflect sales growth at Bloomingdale's and Bluemercury offset by a decline at Macy's.

Macy's, Inc. go-forward business² comparable sales were down 1.8% on an owned basis and down 0.9% on an owned-plus-licensed-plus-marketplace basis. By nameplate:

• Macy's net sales were down 6.5%¹ inclusive of store closures, with comparable sales down 2.9% on an owned basis and down 2.1% on an owned-plus-licensed-plus-marketplace basis. Macy's go-forward business² comparable sales were down 2.7% on an owned basis and down 1.9% on an owned-plus-licensed-plus-marketplace basis.
  • Reimagine 125 locations comparable sales were down 1.3% on an owned basis and down 0.8% on an owned-plus-licensed basis.
• Bloomingdale's net sales were up 2.6%, with comparable sales up 3.0% on an owned basis and up 3.8% on an owned-plus-licensed-plus-marketplace basis.
• Bluemercury net sales were up 0.8% and comparable sales were up 1.5% on an owned basis.

Other revenue of $194 million increased $40 million, or 26.0%. Within Other revenue:

• Credit card net revenues increased $37 million, or 31.6%, to $154 million.
• Macy's Media Network net revenue rose $3 million, or 8.1%, to $40 million.

Gross margin rate of 39.2% was flat, reflecting improved merchandise margin offset by higher delivery expense as a percent of net sales.

Selling, general and administrative ("SG&A") expense of $1.9 billion increased $2 million. The company reinvested savings from closed locations and the company's end-to-end operations efforts into customer facing initiatives within its go-forward business, including in the Reimagine 125 locations, Bloomingdale's and Bluemercury. As a percent of total revenue, SG&A expense increased 170 basis points to 39.9% driven by lower net sales.

Asset sale gains of $16 million increased $15 million.

GAAP net income was $38 million, or 0.8% of total revenue, and Adjusted net income was $46 million, or 1.0% of total revenue. In the first quarter of 2024, GAAP net income was $62 million, or 1.2% of total revenue, and Adjusted net income was $77 million, or 1.5% of total revenue.

GAAP and Adjusted diluted earnings per share ("EPS") were $0.13 and $0.16, respectively. In the first quarter of 2024, GAAP and Adjusted diluted EPS were $0.22 and $0.27, respectively.

Adjusted earnings before interest, taxes, and depreciation and amortization ("EBITDA") was $324 million, or 6.8% of total revenue, and Core Adjusted EBITDA³ was $308 million, or 6.4% of total revenue. In the first quarter of 2024, Adjusted EBITDA was $364 million, or 7.3% of total revenue, and Core Adjusted EBITDA³ was $363 million, or 7.3% of total revenue.

Balance Sheet and Liquidity

Merchandise inventories decreased 0.5% year-over-year.

The company ended the first quarter of 2025 with cash and cash equivalents of $932 million. Based on the strength of its balance sheet, the company amended its asset-based credit facility on April 9, 2025. The company extended the maturity date of its facility to April 2030 from March 2027, proactively reducing borrowing capacity to $2.1 billion from $3.0 billion and improving flexibility through revised terms. As of the end of the first quarter of 2025, the company had $2.0 billion of available borrowing capacity under its asset-based credit facility.

As of the end of first quarter of 2025, total debt of $2.8 billion included no material long-term debt maturities until 2027.

Shareholder Returns

Through its quarterly dividend, the company returned $51 million in cash to shareholders in the first quarter of 2025. Additionally, on May 16, 2025, Macy's, Inc.'s board of directors declared a regular quarterly dividend of 18.24 cents per share on Macy's, Inc's common stock, payable on July 1, 2025 to shareholders of record at the close of business on June 13, 2025.

During the first quarter of 2025, the company repurchased 8.7 million of its shares for a total of $101 million. The company has approximately $1.3 billion remaining under its $2.0 billion share repurchase authorization as of the end of the first quarter of 2025.

2025 Guidance

The company has revised its annual outlook based on current information to account for several factors including: initial and current tariffs; some moderation in consumer discretionary spending; and a heightened competitive promotional landscape. Despite these challenges, the company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to these changes.

The full outlook for 2025, including second quarter of 2025, can be found in the presentation posted to www.macysinc.com/investors. For Macy's, Inc. the company expects:

The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned-plus-licensed-plus-marketplace sales change, Adjusted EBITDA as a percent of total revenue, Core Adjusted EBITDA as a percent of total revenue and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. See Important Information Regarding Non-GAAP Financial Measures.

Conference Call and Webcasts

A webcast of Macy's, Inc.'s call with analysts and investors to report its first quarter of 2025 sales and earnings will be held today (May 28, 2025) at 8:00 a.m. ET. Macy's, Inc.'s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call 1-877-407-0832. A replay of the conference call will be available on the company's website or by calling 1-877-660-6853, using passcode 13753217, about two hours after the conclusion of the call. Additional information on Macy's, Inc., including past news releases, is available at www.macysinc.com/newsroom.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company's non-GAAP financial measures.

About Macy's, Inc.

Macy's, Inc. (NYSE:M) is a trusted source for quality brands through our iconic nameplates – Macy's, Bloomingdale's and Bluemercury. Headquartered in New York City, our comprehensive digital and nationwide footprint empowers us to deliver a seamless shopping experience for our customers. For more information, visit macysinc.com.

Forward-Looking Statements

All statements in this release 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. 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 release because of a variety of factors, including Macy's, Inc.'s ability to successfully implement its Bold New Chapter strategy, including the ability to realize the anticipated benefits associated with the strategy, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers' outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, conditions to, or changes in the timing of proposed real estate and other transactions, declines in credit card revenues, possible systems failures and/or security breaches, Macy's, Inc.'s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, regional political and economic conditions, the effect of trade policies and tariffs, including changes thereto, the effect of weather, inflation, inventory shortage, and labor shortages, the potential for the incurrence of charges in connection with the impairment of tangible and intangible assets, including goodwill, the amount and timing of future dividends and share repurchases, our ability to execute on our strategies and achieve expectations related to environmental, social, and governance matters, and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions "Forward-Looking Statements" and "Risk Factors" in the company's Annual Report on Form 10-K for the year ended February 1, 2025. Macy's, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MACY'S, INC.

Important Information Regarding 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 additional useful information in evaluating operating performance. Management believes that providing supplemental changes in comparable sales on an owned-plus-licensed-plus-marketplace basis, which includes adjusting for the impact of comparable sales of departments licensed to third parties and marketplace sales, assists in evaluating the company's ability to generate sales growth, whether through owned businesses, departments licensed to third parties or marketplace sales, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income and diluted earnings per share that are not associated with the company's core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company's ability to generate earnings and to more readily compare these metrics between past and future periods.

The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned-plus-licensed-plus-marketplace sales change, Adjusted EBITDA, Core Adjusted EBITDA and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties and marketplace sales are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:

• EBITDA, adjusted EBITDA and core adjusted EBITDA are reconciled to GAAP net income.

• Adjusted net income is reconciled to GAAP net income.

• Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per share.

EBITDA, Adjusted EBITDA and Core Adjusted EBITDA

Adjusted Net Income and Adjusted Diluted Earnings Per Share

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Media – Chris Grams

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Investors – Pamela Quintiliano

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