On this page of StockholderLetter.com we present the latest annual shareholder letter from Macy's, Inc. — ticker symbol M. Reading current and past M letters to shareholders can bring important insights into the investment thesis.

 •  4/1/2025 Letter Continued (Full PDF)
 •  4/3/2023 M Stockholder Letter
 •  4/15/2024 M Stockholder Letter
 •  More "Department Stores" Category Stockholder Letters
 •  M Benford's Law Stock Score = 92

M Shareholder/Stockholder Letter Transcript:

2024
Annual Report

To Our
Shareholders
2024 marked an important inflection point for Macy   s, Inc. as
we completed the first year of our three-year Bold New Chapter
strategy designed to return the company to sustainable, profitable
growth. It was also my first year as Chairman and Chief Executive
Officer, and it has been an honor to work alongside the incredible
teams across our organization during this transformative time.
TONY SPRING
Chairman and Chief Executive Officer
Fiscal 2024
Financial Highlights
Beginning A Bold New Chapter.
Since the launch of our Bold New Chapter strategy in early 2024,
we have directed our efforts to fundamentally reposition the
company and challenge the status quo to create a more modern
Macy   s, Inc. Over the course of the year, we made progress on
all three pillars of our Bold New Chapter strategy. We improved
Macy   s, Inc. annual comparable sales by 490 basis points on an
owned basis and 510 basis points on an owned-plus-licensedplus-marketplace basis versus 2023 performance, down 2.0%
and down 0.9% respectively. We achieved full-year net sales
of $22.3 billion, and exercised a disciplined approach to cost
controls, delivering GAAP diluted earnings per share of $2.07 and
adjusted diluted earnings per share of $2.64. We also generated
nearly $1.3 billion of operating cash flow and maintained our
healthy balance sheet, ending the year with $1.3 billion of cash,
up $272 million from last year. Our performance enabled us
to return $192 million to shareholders through quarterly cash
dividends, reflecting a 5% per share increase from 2023.
$22.3B
Net sales
38.4%
Gross Margin as a
Percent of Net Sales
$1.3B
Operating Cash Flow
$1.3B
Ending Cash
$582M
Net Income
MACY   S, INC.
2024 ANNUAL REPORT

Importantly, through our Bold New Chapter strategy, we have enhanced the customer experience across our
three nameplates     Macy   s, Bloomingdale   s and Bluemercury. Each nameplate continues to capture mind share
through enhanced customer service, curated assortments, relevant messaging and compelling value, supported by
improved end-to-end operations. All three pillars of our strategy have gained traction, as we continue to create a
more agile and healthier business for the future:
STRENGTHEN AND REIMAGINE
THE MACY   S NAMEPLATE
ACCELERATE AND
DIFFERENTIATE LUXURY
SIMPLIFY AND MODERNIZE
END-TO-END OPERATIONS
    Delivered four consecutive
quarters of positive comparable
sales1 at Macy   s First 50
locations, reflecting the impact
of initiatives such as enhanced
staffing, improved assortment
and visual presentation.
    Returned to positive,
annual comparable sales3
at Bloomingdale   s, including
the highest fourth-quarter
comparable sales in our history,
and had our fourth consecutive
year of positive comparable
sales4 at Bluemercury.
    Decreased SG&A expense
by $45 million, highlighting
the company   s cost control.
    Delivered record annual
Net Promoter Scores at
Macy   s, up 160 basis points
compared to 2023.
    Evolved our assortment
matrix with an emphasis on
increasing variety, reducing
redundancy, enhancing our
private brands and adding more
relevant national brands.
    Progressed the right sizing of
our store base by closing 64
of approximately 150 non-goforward Macy   s stores, above our
initial target of about 50 closures
for the year, contributing to asset
sale proceeds of $283 million.
    Optimized our digital site
navigation and search engine
capabilities and introduced
a more competitive pricing
algorithm, leading to a return
to positive comparable
sales2 in the 4th quarter.
    Delivered record annual
Net Promoter Scores at
Bloomingdale   s, up 90
basis points from 2023.
    Expanded presence in key
markets with three new
Bloomingdale   s stores, as well
as seven remodeled and 17
new Bluemercury locations.
    Built momentum through
strategic partnerships, such
as Bloomingdale   s exclusive
Wicked collaboration garnering
~15 billion media impressions,
three times higher than last
year   s Holiday campaign.
    Bluemercury celebrated its 25th
anniversary with a revamped
website and the introduction of
an updated store prototype that
builds on what our customer has
responded most favorably to.
    Improved ability to meet
customer demand, increasing
both the percentage of orders
delivered in five days or less
and replenishment in stocks by
about 400 basis points, and
shortening the number of days
from when an order is placed
to shipped by roughly 1,100
basis points versus 2023.
    Our work on end-to-end
operations helps support
our ability to self-fund our
customer-centric investments.
    Maintained strong
inventory discipline with
improved composition and
lower aged inventories.
    Operations at the state-of-theart China Grove distribution
facility are on track to begin
in mid-2025. The 1.4 million
square foot facility will leverage
automation and further streamline
inventory management across
all three nameplates.
1. During the fourth quarter, Macy   s First 50 locations delivered their fourth consecutive quarter of comparable sales growth, up 0.8% on an
owned basis and up 1.2% on an owned-plus-licensed basis.
2. At Macy   s, digital achieved positive owned-plus-licensed-marketplace comparable sales in the fourth quarter
3. During the fourth quarter, Bloomingdale   s reported owned comparable sales growth of 4.8% and its highest fourth-quarter owned-pluslicensed-plus-marketplace comparable sales growth of 6.5%.
4. Bluemercury reported 16th consecutive quarter of comparable sales growth, up 6.2%, during the fourth quarter.
See Important Information Regarding Non-GAAP Financial Measures.
MACY   S, INC.
2024 ANNUAL REPORT

STRENGTHEN AND REIMAGINE THE MACY   S NAMEPLATE
Continuing our Journey
As we begin 2025, our teams are again prioritizing
the customer and operational excellence as
we continue advancing our Bold New Chapter
strategy. Our focus remains on increasing
our relevancy in the marketplace with the five
generations of customers we proudly serve as
we attract new customers to our business. We
expect to further stabilize Macy   s, Inc. this year
through the execution of ongoing key initiatives:
    Proactively progressing our growth plans with
deliberate, intentional decision-making.
    Rationalizing the Macy   s store base and focusing
on investments that best drive our go-forward
Macy   s, Inc. business and long-term aspirations.
ACCELERATE AND DIFFERENTIATE LUXURY
    Managing our capital efficiently, reducing
capital expenditures and maintaining our
strong free cash flow generation.
We will continue to be both creative and data-driven,
and will adjust our plans to meet the needs of our
business, our customers and our shareholders.
Macy   s, Inc. is well positioned to build on the
momentum we have seen across our nameplates,
fueled by the results and learnings in the past year.
We will continue to make appropriate investments
that support our long-term growth ambitions
while returning value to shareholders through our
predictable dividend and resuming share buybacks.
With appreciation,
SIMPLIFY AND MODERNIZE END-TO-END OPERATIONS
TONY SPRING
Chairman and Chief Executive Officer
MACY   S, INC.
2024 ANNUAL REPORT



 4/1/2025 Letter Continued (Full PDF)