DEVELOPING A CULTURE OF GROWTH MACY’S, INC. FACT BOOK 2011 FISCAL YEARS 2011 AND 2012 CALENDAR OF PUBLIC DISCLOSURES Note: All dates are subject to change. MONTHLY SALES ANNOUNCEMENTS QUARTERLY RESULTS Fiscal 2011 Fiscal 2012 Fiscal 2011 Sales Sales Three Months 2011 Earnings 10Q/10K Month Release Dates Release Dates Ended Release Dates SEC Filing February 3/3/11 3/1/12 4/30/11 5/11/11 6/6/11 March 4/7/11 4/5/12 7/30/11 8/10/11 9/6/11 April 5/5/11 5/3/12 10/29/11 11/9/11 12/5/11 May 6/2/11 5/31/12 1/28/12 2/21/12 3/28/12 June 7/7/11 7/5/12 Fiscal 2012 July 8/4/11 8/2/12 Three Months 2012 Earnings 10Q/10K Ended Release Dates SEC Filing August 9/1/11 8/30/12 4/28/12 5/9/12 6/4/12 September 10/6/11 10/4/12 7/28/12 8/8/12 9/4/12 October 11/3/11 11/1/12 10/27/12 11/7/12 12/3/12 November 12/1/11 11/29/12 2/2/13 2/26/13 4/3/13 December 1/5/12 1/3/13 January 2/2/12 2/7/13 Media: Jim Sluzewski .......................................................................1-513-579-7764 Investor: Susan Robinson (prior to 7/1/11); Matt Stautberg (after 7/1/11) ............................................1-513-579-7028 Transfer Agent: BNY Mellon Shareowner Services Inside the United States and Canada .......................1-866-337-3311 Outside the United States and Canada ...................1-201-680-6578 For the Hearing Impaired................................1-800-231-5469 (TDD) Toll-Free Information Request Line ..............................1-800-261-5385 Macy’s, Inc. Corporate Website ............................www.macysinc.com 2 | Macy’s, Inc. CONTENTS CALENDAR OF PUBLIC DISCLOSURES .................................................... 2 MACY’S, INC. At-A-Glance ........................................................................................................... 4 Financial Highlights .............................................................................................4 Corporate Vision, Philosophy and Financial Objectives ................................. 5 Highlights of Progress in 2010 ............................................................................ 6 MACY’S ......................................................................................................... 7 BLOOMINGDALE’S .................................................................................... 14 MACY’S, INC.: A DIVERSE AND INCLUSIVE ORGANIZATION ..............16 GIVING BACK TO OUR COMMUNITIES ..................................................17 SOCIAL RESPONSIBILITY .......................................................................... 20 FINANCIAL OVERVIEW ............................................................................24 STORE LISTINGS Maps ..................................................................................................................... 31 Locations .............................................................................................................. 40 COMPANY HISTORY ..................................................................................52 MACY’S, INC. BOARD OF DIRECTORS/ CORPORATE MANAGEMENT .................................................................58 SHAREHOLDER INFORMATION .............................................................. 61 STORES AND EMPLOYEES BY STATE ......................................................62 2011 Corporate Fact Book | 3 MACY’S, INC. AT-A-GLANCE Macy’s, Inc., with corporate offi ces in Cincinnati and New York, is one of the nation’s premier retailers, with fi scal 2010 sales of $25 billion. The Macy’s brand includes about 810 Macy’s department stores and furniture galleries in 45 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com. The Bloomingdale’s brand includes 41 department stores and home stores in 12 states, bloomingdales.com, and (as of April 2, 2011) four Bloomingdale’s Outlet stores in three states. Bloomingdale’s also operates in Dubai under a lease agreement with Al Tayer Group LLC. Macy’s, Inc.’s diverse workforce includes approximately 166,000 employees. Prior to June 1, 2007, Macy’s, Inc. was known as Federated Department Stores, Inc. The company’s shares are traded under the symbol “M” on the New York Stock Exchange. FINANCIAL HIGHLIGHTS 2010 2009 Net Sales (in billions) $ 25.003 $ 23.489 Change in same-store sales (Note 1) 4.6% (5.3)% Operating Income (in billions) $ 1.894 $ 1.063 % of sales 7.6% 4.5% Operating Income, Excluding Certain Items (in billions) (Note 2) $ 1.919 $ 1.454 % of sales 7.7% 6.2% Diluted Earnings Per Share Net income $ 1.98 $ 0.78 Net income, excluding certain items (Note 2) $ 2.11 $ 1.36 Cash Flow from Operating Activities (in billions) $ 1.506 $ 1.750 Cash Flow from Operating Activities Net of Cash Used by Investing Activities (in billions) (Note 2) $ 1.041 $ 1.373 Notes: (1) Represents the year-to-year percentage change in net sales from Bloomingdale’s and Macy’s stores in operation throughout the year presented and the immediately preceding year and all Internet sales. (2) Represents a non-GAAP measure of operating results. Supplemental Operating Results on page 26 contains a reconciliation to the most comparable GAAP measure. The foregoing fi nancial information, including non-GAAP measures that exclude certain items, should be read in conjunction with the audited fi nancial statements, including the related notes and other fi nancial information contained in the company’s most recent Securities and Exchange Commission fi lings. 4 | Macy’s, Inc. CORPORATE VISION, PHILOSOPHY AND FINANCIAL OBJECTIVES CORPORATE VISION Macy’s, Inc. is a premier national omnichannel retailer with iconic brands that each operate outstanding stores and dynamic online sites. Both Macy’s and Bloomingdale’s are known worldwide, and each has its own unique identity and customer focus. CORPORATE PHILOSOPHY Macy’s, Inc. clearly recognizes that the customer is paramount and that all actions and strategies must be directed toward providing a localized merchandise offering and shopping experience to targeted consumers through dynamic department stores and online sites. Aggressive implementation of the company’s customer-centric strategies by a talented, experienced organization will provide Macy’s, Inc.’s department stores with an important competitive edge. Macy’s, Inc. is committed to open and honest communications with employees, shareholders, vendors, customers, fi nancial analysts and the news media. The company seeks to be proactive in sharing information and in keeping these key stakeholder groups up-to-date on important and material developments. At Macy’s, Inc., our greatest strength lies in the skill, judgment and talent of our people. Every day a production of enormous magnitude takes place on our selling fl oors and behind the scenes, where our people bring the company’s strategic goals to life. Our priority of attracting, retaining and growing the most talented people in the retail industry has been and will continue to be our greatest advantage. CORPORATE FINANCIAL OBJECTIVES The objectives of Macy’s, Inc. are: • To grow sales; • To continue to increase the company’s profi tability levels (earnings before interest, taxes, depreciation and amortization) as a percent of sales; • To improve return on invested capital; • To maximize total shareholder return. 2011 Corporate Fact Book | 5 HIGHLIGHTS OF PROGRESS IN 2010 CULTURE OF GROWTH DEVELOPS INVESTMENT IN OMNICHANNEL Following several years of initiating signifi cant changes INTEGRATION to the company’s structure and organization, the benefi ts Macy’s, Inc. continued to develop and expand its online began coming to fruition in 2010 as a culture of growth capabilities in 2010 to accommodate future growth. This developed at Macy’s, Inc. Same-store sales in fi scal 2010 investment is part of the company’s omnichannel strategy, were up 4.6 percent. Operating income rose by 78 percent which integrates the offerings in stores, the Internet and to $1.894 billion in 2010 from $1.063 billion in 2009. (The mobile technologies. increase in operating income was 32 percent, excluding asset The mission is to serve customers’ needs whenever and impairments, store closing costs and division consolidation however they choose to shop, and to fulfi ll their orders costs of $25 million in 2010 and $391 million in 2009.) Return from inventory no matter where it exists across the company. on invested capital – a key measure of fi nancial productivity In 2010, the company announced that it will build a new – rose signifi cantly in 2010 from 2009. The company believes 1.3 million-square-foot online fulfi llment center near that the strategies that led to success in 2010 are still in the Martinsburg, WV, with operations beginning in April 2012 early phases of implementation with plenty of runway ahead and order shipments beginning in summer 2012. In addition, to produce further improvements in sales, earnings and cash Macy’s is expanding its online order fulfi llment center near fl ow as execution sharpens. Among the strategies driving Portland in Robertson County, TN. The expansion will add growth are My Macy’s localization, an increase in distinctive 374,000 square feet of space. The expanded facility, with a and exclusive merchandise, MAGIC Selling training (a new total of 974,000 square feet, is expected to be operational in approach to customer engagement, rolled out to 130,000 fall 2011. Also being expanded are macys.com organizations associates in 2010), omnichannel integration and focus on in New York City and San Francisco, bloomingdales.com in the upscale customer at Bloomingdale’s.