Prudence On 34 Th Street

Way back in February, 1991, R.H. Macy announced that it would put an unprecedented $150 million into television advertising in 1992. Given Macy's staggering debt load and deteriorating sales, the spending seemed outrageous. Never mind, said Edward S. Finkelstein, Macy's CEO at the time. "There's absolutely no reason for any reasonable person to worry about our financial obligations."

Sometimes, unreasonable folks are right on the money. By 1992, Macy's was in bankruptcy and Finkelstein was out of a job. Now, Macy's Co-Chief Executives Myron E. Ullman III and Mark S. Handler, atoning for their former boss's extravagance, promise such inflated promises are behind them. On Nov. 5, they unveiled a five-year business plan that they hope will relieve their creditors' anxiety about Macy's future. "We're not predicting 10% sales growth and margins improving two points," says Ullman. "Our plan is realistic."