Financial Analysis

Financing Activities The following table details the Company's debt repayments during the 13 and 26 weeks ended August 1, 2026 and August 2, 2025 : 13 and 26 weeks ended August 1, 2026 August 2, 2025 (millions) Short-term debt 7.60% Debentures due 2025 $ $ 6 6 Long-term debt 6.79% Senior debentures due 2027 27 6.70% Senior exchanged debentures due 2028 54 8.75% Senior exchanged debentures due 2029 13 5.875% Senior notes due 2029 326 5.875% Senior notes due 2030 224 644 Total debt $ $ 650 2025 Financing Activities On July 29, 2025, the Company completed three debt transactions, as described below. Macys Retail Holdings, LLC (MRH), a wholly owned subsidiary of Macy's, Inc., issued $500 million in aggregate principal amount of 7.375% senior unsecured notes due August 1, 2033 in a private offering. The Company used the net proceeds from the notes offering, together with cash on hand, to fund a tender offer for certain outstanding senior notes and debentures, to redeem certain other outstanding senior notes and debentures, and to pay fees, premiums and expenses in connection with the notes offering, tender offer and redemption. The Company completed a tender offer in which $251 million aggregate principal amount of certain senior notes and debentures were tendered for early settlement and purchased by MRH for a total cash cost of $255 million. The Company redeemed $393 million aggregate principal amount of certain senior notes and debentures due in 2028 and 2029 and issued an irre …

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Other revenue generating activities consist of credit card revenues and Macy's Media Network revenue. 13 Weeks Ended 26 Weeks Ended Revenues August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 (millions) Women's Accessories, Shoes, Cosmetics and Fragrances $ 1,986 $ 1,954 $ 3,972 $ 3,896 Women's Apparel 1,109 1,094 2,251 2,192 Men's and Kids' 1,048 1,028 2,013 1,980 Home/Other (a) 723 736 1,312 1,343 Total Net Sales $ 4,866 $ 4,812 $ 9,548 $ 9,411 Credit card revenues, net $ 156 $ 153 $ 328 $ 306 Macy's Media Network revenue, net (b) 37 34 75 74 Other Revenue 193 187 403 380 Total Revenue $ 5,059 $ 4,999 $ 9,951 $ 9,791 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. (b) Macy's Media Network is an in-house media platform supporting both Macy's and Bloomingdale's customers through a broad variety of advertising formats running both on owned and operated platforms as well as offsite.

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"Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2024-03, ""Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40)"" (""ASU 2024-03""). The amendments in this update enhance disclosures about a public business entitys expenses and provide more detailed information about the types of expenses included in certain expense captions in the consolidated financial statements. ASU 2024-03 is effective for the Company beginning in the fiscal year ending January 29, 2028. The Company is currently evaluating the impacts of the adoption of ASU 2024-03 on the Consolidated Financial Statements. In July 2025, the FASB issued ASU 2025-05, ""Financial InstrumentsCredit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets"" (""ASU 2025-05""). The amendments in this update provide a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Accounting Standards Codification (""ASC"") 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collections are evaluated. ASU 2025-05 became effective for the Company beginning in th …

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"Revenue Net sales, which mainly consists of retail sales but also includes merchandise returns, gift cards and loyalty programs, represented 96% of total revenue for both the 13 and 26 weeks ended August 1, 2026 and August 2, 2025, respectively. Other revenue generating activities consist of credit card revenues and Macy's Media Network revenue. 13 Weeks Ended 26 Weeks Ended Revenues August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 (millions) Women's Accessories, Shoes, Cosmetics and Fragrances $ 1,986 $ 1,954 $ 3,972 $ 3,896 Women's Apparel 1,109 1,094 2,251 2,192 Men's and Kids' 1,048 1,028 2,013 1,980 Home/Other (a) 723 736 1,312 1,343 Total Net Sales $ 4,866 $ 4,812 $ 9,548 $ 9,411 Credit card revenues, net $ 156 $ 153 $ 328 $ 306 Macy's Media Network revenue, net (b) 37 34 75 74 Other Revenue 193 187 403 380 Total Revenue $ 5,059 $ 4,999 $ 9,951 $ 9,791 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. (b) Macy's Media Network is an in-house media platform supporting both Macy's and Bloomingdale's customers through a broad variety of advertising formats running both on owned and operated platforms as well as offsite. Macy's accounted for 82% of the Company's net sales for both the 13 and 26 weeks ended August 1, 2026, and 84% and 83% of the Company's net sales for the 13 and 26 weeks ended August 2, 2025, respectively. In addition, digital sales accounted for 31% of the …

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"Segments Macy's, Inc., together with its subsidiaries, is an omni-channel retail organization operating stores, websites and mobile applications under three nameplates (Macy's, Bloomingdale's and Bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. As of August 1, 2026, the Company's operations and operating segments were conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's and Bluemercury. All operating segments engage in similar business activities, operate in similar economic environments and have materially similar key economic metrics, among other similarities. As such, the Company aggregates all operations into a single reporting segment under the aggregation criteria. The Company's Chief Executive Officer, Tony Spring, is its Chief Operating Decision Maker (""CODM"") and reviews segment performance to make resource allocation decisions and to guide strategic decisions based on net income, which is reported on the Consolidated Statements of Income. The components of segment net income that the CODM considers are consistent with the components of net income as reported on the Consolidated Statements of Income with the additional disaggregation of depreciation and amortization from selling, general and administrative expenses. Depreciation and amortization expense represented $206 million and $ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing