MACY'S, INC., 10-Q filed on 5/30/2024
Quarterly Report
v3.24.1.1.u2
Cover
 3 Months Ended
May 04, 2024
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date May 04, 2024
Document Transition Report false
Entity File Number 1-13536
Entity Registrant Name Macy's, Inc.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 13-3324058
Entity Address, Address Line One 151 West 34th Street
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10001
City Area Code 212
Local Phone Number 494-1621
Title of 12(b) Security Common Stock, $.01 par value per share
Trading Symbol M
Security Exchange Name NYSE
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 276,411,486
Amendment Flag false
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q1
Entity Central Index Key 0000794367
Current Fiscal Year End Date --02-01
v3.24.1.1.u2
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Income Statement [Abstract]    
Net sales $ 4,846 $ 4,982
Other revenue 154 191
Total revenue 5,000 5,173
Cost of sales (2,946) (2,988)
Selling, general and administrative expenses (1,911) (1,950)
Gains on sale of real estate 1 11
Impairment, restructuring and other costs (19) (2)
Operating income 125 244
Benefit plan income, net 4 4
Interest expense, net (31) (37)
Income before income taxes 98 211
Federal, state and local income tax expense (36) (56)
Net income $ 62 $ 155
Basic earnings per share (usd per share) $ 0.22 $ 0.57
Diluted earnings per share (usd per share) $ 0.22 $ 0.56
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 62 $ 155
Amortization of net actuarial loss and prior service credit on post employment and postretirement benefit plans included in net income, before tax 1 2
Tax effect related to items of other comprehensive income (1) (1)
Total other comprehensive income, net of tax effect 0 1
Comprehensive income $ 62 $ 156
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
May 04, 2024
Feb. 03, 2024
Apr. 29, 2023
Current Assets:      
Cash and cash equivalents $ 876 $ 1,034 $ 603
Receivables 257 293 255
Merchandise inventories 4,687 4,361 4,607
Prepaid expenses and other current assets 442 401 390
Total Current Assets 6,262 6,089 5,855
Property and Equipment - net of accumulated depreciation and amortization of $4,410, $4,276 and $4,763 5,295 5,308 5,864
Right of Use Assets 2,358 2,305 2,715
Goodwill 828 828 828
Other Intangible Assets – net 429 430 432
Other Assets 1,277 1,286 1,174
Total Assets 16,449 16,246 16,868
Current Liabilities:      
Merchandise accounts payable 2,347 1,913 2,415
Accounts payable and accrued liabilities 2,088 2,434 2,233
Income taxes 115 83 134
Total Current Liabilities 4,550 4,430 4,782
Long-Term Debt 2,998 2,998 2,996
Long-Term Lease Liabilities 3,034 2,986 2,996
Deferred Income Taxes 749 745 916
Other Liabilities 932 950 1,008
Shareholders' Equity 4,186 4,137 4,170
Total Liabilities and Shareholders’ Equity $ 16,449 $ 16,246 $ 16,868
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
May 04, 2024
Feb. 03, 2024
Apr. 29, 2023
Statement of Financial Position [Abstract]      
Accumulated depreciation and amortization $ 4,410 $ 4,276 $ 4,763
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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Inventory Valuation and Obsolescence
 [1]
Common Stock
Additional Paid-In Capital
Accumulated Equity
Accumulated Equity
Inventory Valuation and Obsolescence
 [1]
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Beginning balance at Jan. 28, 2023 $ 4,082   $ 3 $ 467 $ 6,268   $ (2,038) $ (618)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 155       155      
Other comprehensive income 1             1
Common stock dividends (45)       (45)      
Stock repurchases 25           25  
Stock-based compensation expense 14     14        
Stock issued under stock plans (12)     (108)     96  
Ending balance at Apr. 29, 2023 4,170   3 373 6,378   (1,967) (617)
Beginning balance at Feb. 03, 2024 4,137 $ 23 3 352 6,190 $ 23 (1,912) (496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 62       62      
Common stock dividends (48)       (48)      
Stock-based compensation expense 13     13        
Stock issued under stock plans (1)     (71)     70  
Ending balance at May. 04, 2024 $ 4,186   $ 3 $ 294 $ 6,227   $ (1,842) $ (496)
[1] Represents the cumulative-effect adjustment for the change in inventory valuation method.
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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Statement of Stockholders' Equity [Abstract]    
Common stock dividends (usd per share) $ 0.1737 $ 0.1654
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Cash flows from operating activities:    
Net income $ 62 $ 155
Adjustments to reconcile net income to net cash provided by operating activities:    
Impairment, restructuring and other costs 19 2
Depreciation and amortization 216 218
Stock-based compensation expense 13 14
Gains on sale of real estate (1) (11)
Benefit plans 1 2
Amortization of financing costs and premium on acquired debt 3 3
Deferred income taxes (10) (32)
Changes in assets and liabilities:    
Decrease in receivables 35 45
Increase in merchandise inventories (273) (340)
(Increase) decrease in prepaid expenses and other current assets (49) 32
Increase in merchandise accounts payable 401 374
Decrease in accounts payable and accrued liabilities (289) (415)
Increase in current income taxes 34 82
Change in other assets and liabilities (33) (24)
Net cash provided by operating activities 129 105
Cash flows from investing activities:    
Purchase of property and equipment (154) (215)
Capitalized software (75) (81)
Disposition of property and equipment 4 25
Other, net 8 1
Net cash used by investing activities (217) (270)
Cash flows from financing activities:    
Debt repaid (1) (1)
Dividends paid (48) (45)
Decrease in outstanding checks (21) (13)
Acquisition of treasury stock 0 (35)
Net cash used by financing activities (70) (94)
Net decrease in cash, cash equivalents and restricted cash (158) (259)
Cash, cash equivalents and restricted cash beginning of period 1,037 865
Cash, cash equivalents and restricted cash end of period 879 606
Supplemental cash flow information:    
Interest paid 59 60
Interest received 12 11
Income taxes paid, net of refunds received 12 6
Restricted cash, end of period $ 3 $ 3
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
May 04, 2024
Apr. 29, 2023
Statement of Cash Flows [Abstract]    
Restricted cash, end of period $ 3 $ 3
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Organization and Summary of Significant Accounting Policies
 3 Months Ended
May 04, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies
Nature of Operations
Macy's, Inc., together with its subsidiaries (the "Company"), is an omni-channel retail organization operating stores, websites and mobile applications under three nameplates (Macy's, Bloomingdale's and Bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. As of May 4, 2024, the Company's operations and operating segments were conducted through Macy's (both mainbox and small format), Macy's Backstage, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury.
Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC.
A description of the Company's significant accounting policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (the "2023 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2023 10-K.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from reported amounts.
The Consolidated Financial Statements for the 13 weeks ended May 4, 2024 and April 29, 2023, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company.
Seasonality
Because of the seasonal nature of the retail business, the results of operations for the 13 weeks ended May 4, 2024 and April 29, 2023 (which do not include the holiday season) are not necessarily indicative of such results for the full fiscal year.
Merchandise Inventories
On February 4, 2024, the Company changed its inventory valuation method. Previously, inventories were principally valued at lower of cost or market using the last-in, first-out (LIFO) retail inventory method (RIM). Commencing in fiscal 2024, inventories are valued at the lower of cost or market using the LIFO cost method. The LIFO cost method is preferable as compared to LIFO RIM because it will improve the cost accuracy and transparency of inventory at the unit level and will better allow the organization to evaluate selling margin realized on each sale. Additionally, it is consistent with the practices of many other retailers, improving comparability. Reported results for periods prior to fiscal 2024 have not been restated due to impracticability as the Company’s systems did not capture historical period-specific information necessary to value the inventory under the cost method. The impact of the change in accounting method had an immaterial effect on the Consolidated Financial Statements as of February 4, 2024.
Under the LIFO cost method, the item-cost method is used to determine inventory cost before the application of any LIFO adjustment, as necessary. This method involves assigning costs to each item individually based on the actual purchase costs of that item. The Company continuously monitors whether the carrying cost of inventory exceeds its market value. Excess inventories may be disposed of through the normal course of business. The Company writes down the carrying value of inventories that are not expected to be sold at or above cost based on historical results.
Comprehensive Income
Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 weeks ended May 4, 2024 and April 29, 2023 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income before income taxes in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Income. See Note 5, "Retirement Plans," for further information.
Recent Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update enhance segment reporting by expanding the breadth and frequency of segment disclosures required by public entities. Most notable, registrants will be required to disclose: (1) significant segment expenses regularly provided to the Chief Operating Decisions Maker ("CODM") and included within the reported measure(s) of a segment's profit or loss, (2) the amount and composition of other segment items, (3) how the CODM uses the reported measure(s) of a segment's profit or loss to assess segment performance and decide how to allocate resources, (4) on an interim basis, all segment profit or loss and asset disclosures currently required annually by Topic 280, as well as those introduced by the ASU, and (5) the CODM's title and position. ASU 2023-07 is effective for the Company beginning in the fiscal year ending February 1, 2025. The Company is currently evaluating the impacts of the adoption of ASU 2023-07.
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" (ASU 2023-09). The amendments in this update enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. These amendments allow investors to better assess how an entity's operations and tax related risks and planning affects its income tax rate and prospects for future cash flows. ASU 2023-09 is effective for the Company beginning in the fiscal year ending January 31, 2026. The Company is currently evaluating the impacts of the adoption of ASU 2023-09.
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Earnings Per Share
 3 Months Ended
May 04, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
13 Weeks Ended
May 4, 2024April 29, 2023
Net IncomeSharesNet IncomeShares
(millions, except per share data)
Net income and average
number of shares outstanding
$62 275.2 $155 272.2 
Shares to be issued under
deferred compensation and other plans
0.9 0.9 
$62 276.1 $155 273.1 
Basic earnings per share$0.22 $0.57 
Effect of dilutive securities:
Stock options and restricted
stock units
4.9 4.7 
$62 281.0 $155 277.8 
Diluted earnings per share$0.22 $0.56 
In addition to the stock options and restricted stock units reflected in the foregoing table, stock options to purchase 7.8 million and 10.0 million shares of common stock and restricted stock units relating to 3.0 million and 5.4 million shares of common stock were outstanding at May 4, 2024 and April 29, 2023, respectively, but were not included in the computation of diluted earnings per share because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met.
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Revenue
 3 Months Ended
May 04, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Net sales, which mainly consist of retail sales but also include merchandise returns, gift cards and loyalty programs, represented 97% and 96% of total revenue for the 13 weeks ended May 4, 2024 and April 29, 2023, respectively. Other revenue generating activities consist of credit card revenues as well as Macy's Media Network revenue.
13 Weeks Ended
RevenuesMay 4, 2024April 29, 2023
(millions)
Women's Accessories, Shoes, Cosmetics and Fragrances$2,070 $2,025 
Women's Apparel1,145 1,150 
Men's and Kids'981 1,018 
Home/Other (a)650 789 
Total Net Sales4,846 4,982 
Credit card revenues, net$117 $162 
Macy's Media Network revenue, net (b)37 29 
Other Revenue154 191 
Total Revenue$5,000 $5,173 
(a)Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards.
(b)Macy's Media Network ("MMN") is an in-house media platform supporting both Macy's and Bloomingdale's customers through a broad variety of advertising formats running both on owned and operated platforms as well as offsite.
Macy's accounted for 84% of the Company's net sales for the 13 weeks ended May 4, 2024 and 85% for the 13 weeks ended April 29, 2023. In addition, digital sales accounted for 32% of the Company's net sales for each of the 13 weeks ended May 4, 2024 and April 29, 2023.
Retail Sales
Retail sales include merchandise sales, inclusive of delivery income, licensed department income, Marketplace income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at point of sale for in-store purchases or the time of shipment to the customer for digital purchases and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments and Marketplace are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities.
Merchandise Returns
The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $193 million, $136 million and $214 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively. Included in prepaid expenses and other current assets is an asset totaling $116 million, $83 million and $127 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively, for the recoverable cost of merchandise estimated to be returned by customers.
Gift Cards and Customer Loyalty Programs
The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved, and revenue is recognized, equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns.
The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy's Star Rewards loyalty program, points are earned based on customers' spending on Macy's private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. Bloomingdale's Loyallist and Bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer.
The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $349 million, $384 million and $360 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively.
Credit Card Revenues
In 2005, in connection with the sale of most of the Company's credit card accounts and related receivable balances to Citibank, the Company and Citibank entered into a long-term marketing and servicing alliance pursuant to the terms of a Credit Card Program Agreement ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, on December 13, 2021, the Company entered into the sixth amendment to the amended and restated Credit Card Program with Citibank (the "Program Agreement"). The changes to the Credit Card Program's financial structure are not materially different from its previous terms. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company's profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts, credit card funding costs and bad debt reserves and are a component of other revenue on the consolidated statements of income.
The Program Agreement expires March 31, 2030, subject to an additional renewal term of three years. The Program Agreement provides for, among other things, (i) the ownership by Citibank of the accounts purchased by Citibank, (ii) the ownership by Citibank of new accounts opened by the Company’s customers, (iii) the provision of credit by Citibank to the holders of the credit cards associated with the foregoing accounts, (iv) the servicing of the foregoing accounts, and (v) the allocation between Citibank and the Company of the economic benefits and burdens associated with the foregoing and other aspects of the alliance. Pursuant to the Program Agreement, the Company continues to provide certain servicing functions related to the accounts and related receivables owned by Citibank and receives compensation from Citibank for these services. The amounts earned under the Program Agreement related to the servicing functions are deemed adequate compensation and, accordingly, no servicing asset or liability has been recorded on the Consolidated Balance Sheets.
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Financing Activities
 3 Months Ended
May 04, 2024
Debt Disclosure [Abstract]  
Financing Activities Financing Activities
The Company did not borrow or repay any debt, outside of capital lease activity, during both the 13 weeks ended May 4, 2024 and April 29, 2023.
As of May 4, 2024 and April 29, 2023, the Company had $144 million and $138 million of standby letters of credit outstanding under its ABL Credit Facility, respectively, which reduced the available borrowing capacity to $2,856 million and $2,862 million, respectively. The Company had no outstanding borrowings under the ABL Credit Facility as of May 4, 2024 and April 29, 2023.
During the 13 weeks ended May 4, 2024 the Company did not repurchase shares of its common stock. During the 13 weeks ended April 29, 2023, the Company repurchased approximately 1.4 million shares of its common stock pursuant to existing stock purchase authorizations for a total of approximately $25 million.
v3.24.1.1.u2
Retirement Plans
 3 Months Ended
May 04, 2024
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Retirement Plans Retirement Plans
The Company has defined contribution plans that cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants.
In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans.
In addition, certain retired employees currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible employees who were hired prior to a certain date and retire after a certain age with specified years of service. Certain employees are subject to having such benefits modified or terminated.
The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows:
13 Weeks Ended
May 4, 2024April 29, 2023
(millions)
401(k) Qualified Defined Contribution Plan$23 $23 
Pension Plan
Interest cost$18 $22 
Expected return on assets(29)(34)
Recognition of net actuarial loss1 2 
$(10)$(10)
Supplementary Retirement Plan
Interest cost$5 $5 
Recognition of net actuarial loss2 2 
$7 $7 
  
Total Retirement Expense$20 $20 
  
Postretirement Obligations  
Interest cost$1 $1 
Recognition of net actuarial gain(2)(2)
$(1)$(1)
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Fair Value Measurements
 3 Months Ended
May 04, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company's financial assets are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards.
Level 1: Quoted prices in active markets for identical assets
Level 2: Significant observable inputs for the assets
Level 3: Significant unobservable inputs for the assets

The following table shows the estimated fair value of the Company's marketable equity and debt securities:
Fair Value Measurements
TotalLevel 1Level 2Level 3
(millions)
May 4, 2024$36 $36 $— $— 
February 3, 202442 42 — — 
April 29, 202336 36 — — 
Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, certain short-term investments and other assets, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long-term debt. With the exception of long-term debt, the carrying amount of these financial instruments approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are generally estimated based on quoted market prices for identical or similar instruments, and are classified as Level 2 measurements within the hierarchy as defined by applicable accounting standards.
The following table shows the estimated fair value of the Company's long-term debt:
Notional
Amount		Carrying
Amount		Fair
Value
(millions)
May 4, 2024$3,007 $2,998 $2,766 
February 3, 20243,007 2,998 2,706 
April 29, 20233,007 2,996 2,468 
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Supplier Finance Programs
 3 Months Ended
May 04, 2024
Payables and Accruals [Abstract]  
Supplier Finance Programs Supplier Finance Programs
The Company has agreements with third-party financial institutions to facilitate supply chain finance ("SCF") programs. The programs allow qualifying suppliers to sell their receivables, on an invoice level at the selection of the supplier, from the Company to the financial institution and negotiate their outstanding receivable arrangements and associated fees directly with the financial institution. Macy's, Inc. is not party to the agreements between the supplier and the financial institution. The supplier invoices that have been confirmed as valid under the SCF programs require payment in full by the financial institution to the supplier by the original maturity date of the invoice, or discounted payment at an earlier date as agreed upon with the supplier. The Company's obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier’s participation in the SCF programs.

All outstanding amounts related to suppliers participating in the SCF programs are recorded upon confirmation with the third-party institutions in merchandise accounts payable in the consolidated balance sheets, and associated payments are included in operating activities in the consolidated statements of cash flows. The Company's outstanding obligations as of May 4, 2024, February 3, 2024 and April 29, 2023 were $125 million, $112 million and $102 million, respectively.
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Pay vs Performance Disclosure    
Net income $ 62 $ 155
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
May 04, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.1.u2
Organization and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
May 04, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from reported amounts.
The Consolidated Financial Statements for the 13 weeks ended May 4, 2024 and April 29, 2023, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company.
Seasonality
Seasonality
Because of the seasonal nature of the retail business, the results of operations for the 13 weeks ended May 4, 2024 and April 29, 2023 (which do not include the holiday season) are not necessarily indicative of such results for the full fiscal year.
Comprehensive Income
Comprehensive Income
Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 weeks ended May 4, 2024 and April 29, 2023 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income before income taxes in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Income.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update enhance segment reporting by expanding the breadth and frequency of segment disclosures required by public entities. Most notable, registrants will be required to disclose: (1) significant segment expenses regularly provided to the Chief Operating Decisions Maker ("CODM") and included within the reported measure(s) of a segment's profit or loss, (2) the amount and composition of other segment items, (3) how the CODM uses the reported measure(s) of a segment's profit or loss to assess segment performance and decide how to allocate resources, (4) on an interim basis, all segment profit or loss and asset disclosures currently required annually by Topic 280, as well as those introduced by the ASU, and (5) the CODM's title and position. ASU 2023-07 is effective for the Company beginning in the fiscal year ending February 1, 2025. The Company is currently evaluating the impacts of the adoption of ASU 2023-07.
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" (ASU 2023-09). The amendments in this update enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. These amendments allow investors to better assess how an entity's operations and tax related risks and planning affects its income tax rate and prospects for future cash flows. ASU 2023-09 is effective for the Company beginning in the fiscal year ending January 31, 2026. The Company is currently evaluating the impacts of the adoption of ASU 2023-09.
Revenue
Retail Sales
Retail sales include merchandise sales, inclusive of delivery income, licensed department income, Marketplace income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at point of sale for in-store purchases or the time of shipment to the customer for digital purchases and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments and Marketplace are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities.
Merchandise Returns
The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $193 million, $136 million and $214 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively. Included in prepaid expenses and other current assets is an asset totaling $116 million, $83 million and $127 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively, for the recoverable cost of merchandise estimated to be returned by customers.
Gift Cards and Customer Loyalty Programs
The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved, and revenue is recognized, equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns.
The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy's Star Rewards loyalty program, points are earned based on customers' spending on Macy's private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. Bloomingdale's Loyallist and Bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer.
The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $349 million, $384 million and $360 million as of May 4, 2024, February 3, 2024 and April 29, 2023, respectively.
Credit Card Revenues
In 2005, in connection with the sale of most of the Company's credit card accounts and related receivable balances to Citibank, the Company and Citibank entered into a long-term marketing and servicing alliance pursuant to the terms of a Credit Card Program Agreement ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, on December 13, 2021, the Company entered into the sixth amendment to the amended and restated Credit Card Program with Citibank (the "Program Agreement"). The changes to the Credit Card Program's financial structure are not materially different from its previous terms. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company's profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts, credit card funding costs and bad debt reserves and are a component of other revenue on the consolidated statements of income.
The Program Agreement expires March 31, 2030, subject to an additional renewal term of three years. The Program Agreement provides for, among other things, (i) the ownership by Citibank of the accounts purchased by Citibank, (ii) the ownership by Citibank of new accounts opened by the Company’s customers, (iii) the provision of credit by Citibank to the holders of the credit cards associated with the foregoing accounts, (iv) the servicing of the foregoing accounts, and (v) the allocation between Citibank and the Company of the economic benefits and burdens associated with the foregoing and other aspects of the alliance. Pursuant to the Program Agreement, the Company continues to provide certain servicing functions related to the accounts and related receivables owned by Citibank and receives compensation from Citibank for these services. The amounts earned under the Program Agreement related to the servicing functions are deemed adequate compensation and, accordingly, no servicing asset or liability has been recorded on the Consolidated Balance Sheets.
v3.24.1.1.u2
Earnings Per Share (Tables)
 3 Months Ended
May 04, 2024
Earnings Per Share [Abstract]  
Summary of Computation of Basic and Diluted Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
13 Weeks Ended
May 4, 2024April 29, 2023
Net IncomeSharesNet IncomeShares
(millions, except per share data)
Net income and average
number of shares outstanding
$62 275.2 $155 272.2 
Shares to be issued under
deferred compensation and other plans
0.9 0.9 
$62 276.1 $155 273.1 
Basic earnings per share$0.22 $0.57 
Effect of dilutive securities:
Stock options and restricted
stock units
4.9 4.7 
$62 281.0 $155 277.8 
Diluted earnings per share$0.22 $0.56 
v3.24.1.1.u2
Revenue (Tables)
 3 Months Ended
May 04, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Sales From Merchandise Category Other revenue generating activities consist of credit card revenues as well as Macy's Media Network revenue.
13 Weeks Ended
RevenuesMay 4, 2024April 29, 2023
(millions)
Women's Accessories, Shoes, Cosmetics and Fragrances$2,070 $2,025 
Women's Apparel1,145 1,150 
Men's and Kids'981 1,018 
Home/Other (a)650 789 
Total Net Sales4,846 4,982 
Credit card revenues, net$117 $162 
Macy's Media Network revenue, net (b)37 29 
Other Revenue154 191 
Total Revenue$5,000 $5,173 
(a)Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards.
(b)Macy's Media Network ("MMN") is an in-house media platform supporting both Macy's and Bloomingdale's customers through a broad variety of advertising formats running both on owned and operated platforms as well as offsite.
v3.24.1.1.u2
Retirement Plans (Tables)
 3 Months Ended
May 04, 2024
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Summary of Costs of Retirement Plans
The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows:
13 Weeks Ended
May 4, 2024April 29, 2023
(millions)
401(k) Qualified Defined Contribution Plan$23 $23 
Pension Plan
Interest cost$18 $22 
Expected return on assets(29)(34)
Recognition of net actuarial loss1 2 
$(10)$(10)
Supplementary Retirement Plan
Interest cost$5 $5 
Recognition of net actuarial loss2 2 
$7 $7 
  
Total Retirement Expense$20 $20 
  
Postretirement Obligations  
Interest cost$1 $1 
Recognition of net actuarial gain(2)(2)
$(1)$(1)
v3.24.1.1.u2
Fair Value Measurements (Tables)
 3 Months Ended
May 04, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Summary of Fair Value of Plan Assets Measured on a Recurring Basis
The Company's financial assets are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards.
Level 1: Quoted prices in active markets for identical assets
Level 2: Significant observable inputs for the assets
Level 3: Significant unobservable inputs for the assets

The following table shows the estimated fair value of the Company's marketable equity and debt securities:
Fair Value Measurements
TotalLevel 1Level 2Level 3
(millions)
May 4, 2024$36 $36 $— $— 
February 3, 202442 42 — — 
April 29, 202336 36 — — 
Summary of Estimated Fair Values of Company's Long Term Debt
The following table shows the estimated fair value of the Company's long-term debt:
Notional
Amount		Carrying
Amount		Fair
Value
(millions)
May 4, 2024$3,007 $2,998 $2,766 
February 3, 20243,007 2,998 2,706 
April 29, 20233,007 2,996 2,468 
v3.24.1.1.u2
Organization and Summary of Significant Accounting Policies - Narrative (Details)
May 04, 2024
state
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of states in which entity operates 43
v3.24.1.1.u2
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Earnings Per Share [Abstract]    
Net income $ 62 $ 155
Net income available to common stockholders, basic $ 62 $ 155
Basic earnings per share (usd per share) $ 0.22 $ 0.57
Weighted average number of shares issued, basic (in shares) 275.2 272.2
Shares to be issued under deferred compensation and other plans (in shares) 0.9 0.9
Average number of shares outstanding, basic (in shares) 276.1 273.1
Effect of dilutive securities:    
Net income available to common stockholders, diluted $ 62 $ 155
Diluted earnings per share (usd per share) $ 0.22 $ 0.56
Stock options and restricted stock units (in shares) 4.9 4.7
Average number of shares outstanding, diluted (in shares) 281.0 277.8
v3.24.1.1.u2
Earnings Per Share - Narrative (Details) - shares
shares in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Employee Stock Options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings (in shares) 7.8 10.0
Restricted Stock Units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings (in shares) 3.0 5.4
v3.24.1.1.u2
Revenue - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Feb. 03, 2024
Disaggregation of Revenue [Line Items]      
Percentage of net sales revenue 97.00% 96.00%  
Macy's sales to total company sales percentage 84.00% 85.00%  
Percentage of digital sales 32.00% 32.00%  
Contract with customer, refund liability $ 193 $ 214 $ 136
Contract with customer, right to recover product 116 127 83
Contract with customer, liability, current $ 349 $ 360 $ 384
Credit Card Intermediary      
Disaggregation of Revenue [Line Items]      
Agreement renewal option number of years 3 years    
v3.24.1.1.u2
Revenue - Sales From Merchandise Category (Details) - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Disaggregation of Revenue [Line Items]    
Net sales $ 4,846 $ 4,982
Other Revenue 154 191
Total revenue 5,000 5,173
Women's Accessories, Shoes, Cosmetics and Fragrances    
Disaggregation of Revenue [Line Items]    
Net sales 2,070 2,025
Women's Apparel    
Disaggregation of Revenue [Line Items]    
Net sales 1,145 1,150
Men's and Kids'    
Disaggregation of Revenue [Line Items]    
Net sales 981 1,018
Home/Other    
Disaggregation of Revenue [Line Items]    
Net sales 650 789
Credit card revenues, net    
Disaggregation of Revenue [Line Items]    
Other Revenue 117 162
Macy's Media Network revenue, net    
Disaggregation of Revenue [Line Items]    
Other Revenue $ 37 $ 29
v3.24.1.1.u2
Financing Activities (Details) - USD ($)
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Debt Instrument [Line Items]    
Stock repurchased (in shares) 0 1,400,000
Stock repurchases   $ 25,000,000
Revolving Credit Facility | Revolving A B L Facility    
Debt Instrument [Line Items]    
Letters of credit outstanding $ 144,000,000 138,000,000
Line of credit facility, remaining borrowing capacity 2,856,000,000 2,862,000,000
Revolving Credit Facility | Revolving A B L Facility | Line of Credit    
Debt Instrument [Line Items]    
Amount outstanding under credit facility $ 0 $ 0
v3.24.1.1.u2
Retirement Plans - Narrative (Details)
 3 Months Ended
May 04, 2024
hour
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Number of hours required for participation in defined benefit and defined contribution plans 1,000
v3.24.1.1.u2
Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
May 04, 2024
Apr. 29, 2023
Defined Benefit Plan Disclosure [Line Items]    
Total Retirement Expense $ 20 $ 20
Other Postretirement Benefits    
Defined Benefit Plan Disclosure [Line Items]    
Interest cost 1 1
Recognition of net actuarial loss (2) (2)
Total net periodic benefit cost (1) (1)
Pension Plan    
Defined Benefit Plan Disclosure [Line Items]    
Interest cost 18 22
Expected return on assets (29) (34)
Recognition of net actuarial loss 1 2
Total net periodic benefit cost (10) (10)
Supplementary Retirement Plan    
Defined Benefit Plan Disclosure [Line Items]    
Interest cost 5 5
Recognition of net actuarial loss 2 2
Total net periodic benefit cost 7 7
Defined Contribution Qualified Plan | Other Postretirement Benefits    
Defined Benefit Plan Disclosure [Line Items]    
401(k) Qualified Defined Contribution Plan $ 23 $ 23
v3.24.1.1.u2
Fair Value Measurements - Financial Assets Measured At Fair Value On A Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Millions
May 04, 2024
Feb. 03, 2024
Apr. 29, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Marketable equity and debt securities $ 36 $ 42 $ 36
Level 1      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Marketable equity and debt securities 36 42 36
Level 2      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Marketable equity and debt securities 0 0 0
Level 3      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Marketable equity and debt securities $ 0 $ 0 $ 0
v3.24.1.1.u2
Fair Value Measurements - Estimated Fair Value Of Company Long Term Debt (Details) - USD ($)
$ in Millions
May 04, 2024
Feb. 03, 2024
Apr. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Notional Amount $ 3,007 $ 3,007 $ 3,007
Carrying Amount 2,998 2,998 2,996
Fair Value $ 2,766 $ 2,706 $ 2,468
v3.24.1.1.u2
Supplier Finance Programs (Details) - USD ($)
$ in Millions
May 04, 2024
Feb. 03, 2024
Apr. 29, 2023
Payables and Accruals [Abstract]      
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] Merchandise accounts payable Merchandise accounts payable Merchandise accounts payable
Supplier finance program, confirmed obligation $ 125 $ 112 $ 102