MMEDIUM SIGNALOPERATIONAL10-K

Macy's reduced its store footprint from 680 to 665 locations while improving operational efficiency and profitability metrics.

The store closure program appears to be yielding positive results, with the company maintaining revenue generation capacity while reducing physical infrastructure costs. The combination of fewer stores and improved financial performance suggests management is successfully executing a strategic rightsizing initiative focused on optimizing profitable locations.

Comparing 2026-03-27 vs 2025-03-21View on EDGAR →
FINANCIAL ANALYSIS

Macy's demonstrated solid operational improvements with operating income growing 13.3% to $1.0 billion and net income increasing 10.3% to $642 million. Operating cash flow strengthened modestly to $1.4 billion, while capital expenditures declined 28% to $373 million, reflecting a more disciplined approach to capital allocation. The overall financial picture signals a company successfully balancing store optimization with profitability enhancement.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-28%
$518.0M$373.0M

Capex reduced 28% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Operating Income
P&L
+13.3%
$909.0M$1.0B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Operating Cash Flow
Cash Flow
+11.9%
$1.3B$1.4B

Operating cash flow grew 11.9% — strong conversion of earnings to cash, healthy business fundamentals.

Net Income
P&L
+10.3%
$582.0M$642.0M

Net income grew 10.3% — bottom-line growth signals improving overall business health.

LANGUAGE CHANGES
NEW — 2026-03-27
PRIOR — 2025-03-21
ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 69 Item 9A.
or the Company are references to Macy's and its subsidiaries and references to 2025, 2024, and 2023 are references to the Company's fiscal years ended January 31, 2026, February 1, 2025 and February 3, 2024, respectively.
(the Company , we , us or our ) is a premier omnichannel retail organization that operates 665 stores, websites and mobile applications under three iconic brands: Macy's, Bloomingdale's and Bluemercury.
The Company sells a wide range of merchandise, including apparel and accessories, cosmetics, home furnishings and other consumer goods and operates across a broad spectrum that spans from value-conscious, off-price shoppers to premium luxury consumers.
leverages its multi-brand, multi-category and multi-channel model to provide a high level of flexibility to read and react to shifting consumer demand and caters to an annual customer base of nearly 40 million active consumers.
Macy s is a modern department store that provides a wide range of merchandise, encompassing men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.
Macy's seeks to attract a broad, middle-to-higher-income customer base by offering compelling, high-quality products, competitive pricing and trusted customer service across its physical and digital channels.
To serve different customer segments and trade areas, Macy s operates full-line and smaller format locations and provides an off-price retail concept through its Macy s Backstage nameplate.
Founded over 150 years ago, Bloomingdale s represents the Company's upscale, premium contemporary-to-luxury department store offering.
REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A.
Changes in and Disagreements W ith Accountants on Accounting and Financial Disclosure 70 Item 9A.
or the Company are references to Macy's and its subsidiaries and references to 2024, 2023, and 2022 are references to the Company's fiscal years ended February 1, 2025, February 3, 2024 and January 28, 2023, respectively.
General The Company is a corporation organized under the laws of the State of Delaware in 1985.
The Company and its predecessors have been operating department stores since 1830.
As of February 1, 2025, the Company operated 680 store locations in 43 states, the District of Columbia, Puerto Rico and Guam.
The Company's operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury.
In addition, Bloomingdale's in Dubai, United Arab Emirates, and Al Zahra, Kuwait are operated under license agreements with Al Tayer Insignia, a company of Al Tayer Group, LLC.
The Company sells a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods.
The specific assortments vary by size of store, merchandising assortments and character of customers in the trade areas.
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