Macy : Revised Presentation Q2 2021

Second Quarter 2021 Earnings

Jeff Gennette, Chairman & CEO

Adrian Mitchell, CFO

19 August 2021 (Revised)

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Safe Harbor Statement

All statements in this presentation 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 the effects of the novel coronavirus (COVID-19) on Macy's customer demand and supply chain, as well as its consolidated results of operation, financial position and cash flows, Macy's ability to successfully implement its Polaris strategy and restructuring, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, 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, possible systems failures and/or security breaches, the potential for the incurrence of charges in connection with the impairment of intangible assets, including goodwill, Macy's reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather 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

January 30, 2021 and the Company's Quarterly Report on Form 10-Q for the quarter ended May 1, 2021. Macy's 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.

This presentation includes non-GAAP financial measures that exclude the impact of certain financial statement items. Additional important information regarding these non-GAAP financial measures as well as others used in the earnings release can be found on the Investors section of our website and in the appendix of this presentation.

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Second Quarter and First Half Results

Second Quarter Snapshot

millions, except per share figures and percentages	2Q21	2Q20	2Q19
Net Sales	$5,647	$3,559	$5,546
Comp sales - owned	61.2%	(34.7%)	0.2%
Comp sales - owned + licensed	62.2%	(35.1%)	0.3%
Credit card revenues, net	$197	$168	$176
Gross margin	$2,294	$841	$2,151
Gross margin rate	40.6%	23.6%	38.8%
Selling, general & administrative expense (SG&A)	$1,898	$1,398	$2,177
SG&A rate	33.6%	39.2%	39.3%
Asset sale gains	$6	-	$7
Earnings before interest, taxes, depreciation and	$753	$ (422)	$400
amortization (EBITDA)
Adjusted EBITDA	$836	$ (142)	$402
Diluted earnings per share (EPS)	$ 1.08	$ (1.39)	$ 0.28
Adjusted Diluted EPS	$ 1.29	$ (0.81)	$ 0.28

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Spring Season Snapshot

millions, except per share figures and percentages	1H21	1H20	1H19
Net Sales	$10,353	$6,576	$11,050
Comp sales - owned	61.8%	(40.0%)	0.4%
Comp sales - owned + licensed	63.0%	(40.2%)	0.5%
Credit card revenues, net	$356	$299	$348
Gross margin	$4,111	$1,357	$4,252
Gross margin rate	39.7%	20.6%	38.5%
SG&A	$3,646	$2,995	$4,287
SG&A rate	35.2%	45.4%	38.8%
Asset sale gains	$12	$16	$49
EBITDA	$1,207	$ (4,294)	$846
Adjusted EBITDA	$1,309	$ (830)	$849
Diluted EPS	$ 1.41	$ (12.91)	$ 0.71
Adjusted Diluted EPS	$ 1.68	$ (2.83)	$ 0.72

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