Macy’s, Inc. Comparable Sales Including Licensed Departments Rose 4.3% in November/December Period; Comparable Sales Rose

  Macy’s, Inc. Comparable Sales Including Licensed Departments Rose 4.3% in
  November/December Period; Comparable Sales Rose 3.6%

 Company maintains FY2013 EPS guidance, provides initial FY2014 sales and EPS
                                   guidance

Business Wire

CINCINNATI -- January 8, 2014

Macy’s, Inc. (NYSE:M) today announced that its comparable sales, together with
comparable sales from departments licensed to third parties, rose by 4.3
percent in the 2013 holiday shopping season – the months of November and
December combined – compared with the same period last year. November/December
2013 comparable sales were up 3.6 percent.

(Editor’s Note: Macy’s, Inc. this afternoon also issued a separate news
release outlining cost reduction initiatives to support continued profitable
sales growth.)

“The 2013 holiday season was successful for Macy’s and Bloomingdale’s as we
offered fresh and distinctive merchandise, delivered great value to the
customer and provided a robust omnichannel shopping experience which served
our customers whenever, however and wherever they chose to shop and to buy,”
said Terry J. Lundgren, Macy’s chairman, president and chief executive
officer. “Even in a questionable macroeconomic environment with challenging
weather in multiple states, the positive response from our customers during
the holiday season is yet another vote of confidence that our well-established
strategies continue to work for us.”

Macy’s, Inc. is scheduled to report fourth quarter sales and earnings on
Tuesday, Feb. 25, 2014. Additional detail on financial performance will be
provided at that time. The company will webcast a call with financial analysts
and investors at 10:30 a.m. ET on Feb. 25. Macy's, Inc.’s webcast is
accessible to the media and general public via the company's website at
www.macysinc.com. Analysts and investors may call in on 1-888-262-8795,
passcode 5455814. A replay of the conference call can be accessed on the Web
site or by calling 1-888-203-1112 (same passcode) about two hours after the
conclusion of the call.

The company’s comparable sales include net sales from stores open at least one
full fiscal year, as well as online sales at macys.com and bloomingdales.com.
The company licenses third parties to operate certain departments in its
stores and receives commissions from these third parties based on a percentage
of their net sales. Neither the licensed department sales nor the commissions
received are included in the calculation of comparable sales.

Please see the last page of this news release for important information
regarding the calculation of the company’s comparable sales together with
comparable sales from departments licensed to third parties. The company
believes that the combination of the two provides a useful measure for
assessing changes in total customer demand at Macy’s and Bloomingdale’s.

Guidance

Macy’s, Inc. is narrowing the range of its guidance for comparable sales
growth in the second half of 2013 to a range of 2.8 percent to 2.9 percent
(from previous guidance of up between 2.5 percent and 4 percent) – which
calculates to guidance for comparable sales in the fourth quarter to grow by
approximately 2.3 percent to 2.5 percent, and for full-year 2013 sales to grow
by 2.2 percent to 2.3 percent.

The company is maintaining its full-year 2013 earnings guidance (reiterated on
Nov. 13, 2013) in the range of $3.80 to $3.90 per diluted share, excluding
charges related to today’s announcement of operating cost reductions, store
closings and asset impairment charges.

The company also noted that it will forego an expected $150 million pension
contribution in the fourth quarter of 2013 as a result of better-than-expected
market returns.

Macy’s, Inc. also provided initial guidance for fiscal 2014. Management
currently expects comparable sales in 2014 to increase in the range of 2.5
percent to 3 percent compared with 2013 levels. Earnings per share are
expected in the range of $4.40 to $4.50.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the
nation’s premier retailers, with fiscal 2012 sales of $27.7 billion. The
company operates about 840 department stores in 45 states, the District of
Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s,
as well as the macys.com and bloomingdales.com websites. The company also
operates 13 Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated
by Al Tayer Group LLC under a license agreement.

All statements in this press 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 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 conditions to, or
changes in the timing of, proposed transactions, prevailing interest rates and
non-recurring charges, competitive pressures from specialty stores, general
merchandise stores, off-price and discount stores, manufacturers’ outlets, the
Internet, mail-order catalogs and television shopping and general consumer
spending levels, including the impact of the availability and level of
consumer debt, the effect of weather and other factors identified in documents
filed by the company with the Securities and Exchange Commission.

(Note: additional information on Macy’s, Inc., including past news releases,
is available at www.macysinc.com/pressroom)

                                 MACY’S, INC.

         Important Information Regarding Non-GAAP Financial Measures

The Company reports its financial results in accordance with 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. See the table below for
supplemental financial data and corresponding reconciliations to GAAP
financial measures. These 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 these non-GAAP financial measures may be
significant items that could impact the Company's financial position, results
of operations and cash flows and should therefore be considered in assessing
the Company's actual financial condition and performance. 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.

Macy's, Inc. believes that providing comparable sales growth including the
impact of growth in comparable sales of departments licensed to third parties
supplementally to its results of operations calculated in accordance with
generally accepted accounting principles provides useful information to
investors. In particular, Macy's, Inc. believes that this supplemental
information assists in evaluating the Company's ability to generate sales
growth, whether through owned businesses or departments licensed to third
parties, on a comparable basis, and in evaluating the impact of changes in the
manner in which certain departments are operated (e.g. the conversion in 2013
of most of the Company's previously owned athletic footwear business to
licensed Finish Line shops).

                                                               9 Weeks Ended
                                                           
                                                               January 4, 2014
                                                               
Increase in comparable sales (Note 1)                          3.6      %
                                                               
Impact of growth in comparable sales of departments            0.7      %
licensed to third parties (Note 2)
                                                               
Comparable sales growth including the impact of growth
in comparable sales of departments licensed to third           4.3      %
parties
                                                                        

Notes:
      Represents the period-to-period change in net sales from stores in
(1)  operation throughout 2013 and 2012 and all net Internet sales, excluding
      commissions from departments licensed to third parties.
      Represents the impact on comparable sales of including the sales of
      departments licensed to third parties occurring in stores in operation
      throughout 2013 and 2012 and via the Internet in the calculation. The
      Company licenses third parties to operate certain departments in its
      stores and online and receives commissions from these third parties
(2)   based on a percentage of their net sales. In its financial statements
      prepared in conformity with GAAP, the Company includes these commissions
      (rather than sales of the departments licensed to third parties) in its
      net sales. The Company does not, however, include any amounts in respect
      of licensed department sales in its comparable sales in accordance with
      GAAP.
      

Contact:

Macy’s, Inc.
Media
Jim Sluzewski, 513-579-7764
or
Investor
Matt Stautberg, 513-579-7780