m-20230429

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-Q

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x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 29, 2023


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-13536

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Macy's, Inc.

(Exact name of registrant as specified in its charter)

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Delaware			13-3324058
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

151 West 34th Street, New York, New York 10001

(Address of Principal Executive Offices, including Zip Code)

(212) 494-1621

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value per share	M	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at May 27, 2023
Common Stock, $.01 par value per share						272,529,787 shares


		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Statements of Income	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Balance Sheets	5
	Consolidated Statements of Changes in Shareholders' Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	24
Item 4.	Control and Procedures	24
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 5.	Other Information	25
Item 6.	Exhibits	27
SIGNATURES		28


	13 Weeks Ended
	April 29, 2023		April 30, 2022
Net sales	$	4,982	$	5,348
Other revenue	191		217
Total revenue	5,173		5,565

Cost of sales	(2,988)		(3,231)
Selling, general and administrative expenses	(1,950)		(1,905)
Gains on sale of real estate	11		42
Impairment, restructuring and other costs	(2)		(8)
Operating income	244		463
Benefit plan income, net	4		7

Interest expense, net	(37)		(47)
Losses on early retirement of debt	—		(31)
Income before income taxes	211		392
Federal, state and local income tax expense	(56)		(106)
Net income	$	155	$	286
Basic earnings per share	$	0.57	$	1.01
Diluted earnings per share	$	0.56	$	0.98


	April 29, 2023		January 28, 2023		April 30, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	603	$	862	$	672
Receivables	255		300		233
Merchandise inventories	4,607		4,267		4,956
Prepaid expenses and other current assets	390		424		372
Total Current Assets	5,855		5,853		6,233
Property and Equipment - net of accumulated depreciation and amortization of $4,763, $4,633 and $4,671	5,864		5,913		5,601
Right of Use Assets	2,715		2,683		2,736
Goodwill	828		828		828
Other Intangible Assets – net	432		432		434
Other Assets	1,174		1,157		1,140
Total Assets	$	16,868	$	16,866	$	16,972
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:

Merchandise accounts payable	$	2,415	$	2,053	$	2,865
Accounts payable and accrued liabilities	2,233		2,750		2,456
Income taxes	134		58		222
Total Current Liabilities	4,782		4,861		5,543
Long-Term Debt	2,996		2,996		2,994
Long-Term Lease Liabilities	2,996		2,963		3,030
Deferred Income Taxes	916		947		968
Other Liabilities	1,008		1,017		1,159
Shareholders' Equity	4,170		4,082		3,278
Total Liabilities and Shareholders’ Equity	$	16,868	$	16,866	$	16,972


	Common Stock		Additional Paid-In Capital		Accumulated Equity		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity
Balance at January 28, 2023	$	3	$	467	$	6,268	$	(2,038)	$	(618)	$	4,082
Net income					155						155
Other comprehensive income									1		1
Common stock dividends ($0.1654 per share)					(45)						(45)
Stock repurchases							(25)				(25)
Stock-based compensation expense			14								14
Stock issued under stock plans			(108)				96				(12)
Balance at April 29, 2023	$	3	$	373	$	6,378	$	(1,967)	$	(617)	$	4,170


	13 Weeks Ended
Revenues	April 29, 2023		April 30, 2022
	(millions)
Women's Accessories, Shoes, Cosmetics and Fragrances	$	2,025	$	2,090
Women's Apparel	1,150		1,282
Men's and Kids'	1,018		1,086
Home/Other (a)	789		890
Total Net Sales	4,982		5,348

Credit card revenues, net	162		191
Macy's Media Network revenue, net (b)	29		26
Other Revenue	191		217

Total Revenue	$	5,173	$	5,565


	April 29, 2023								April 30, 2022
			Fair Value Measurements								Fair Value Measurements
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(millions)
Marketable equity and debt securities	$	36	$	36	$	—	$	—	$	35	$	35	$	—	$	—


	April 29, 2023						April 30, 2022
	Notional Amount		Carrying Amount		Fair Value		Notional Amount		Carrying Amount		Fair Value
	(millions)
Long-term debt	$	3,007	$	2,996	$	2,468	$	3,007	$	2,994	$	2,675


	First Quarter of 2023							First Quarter of 2022
	Amount			% to Net Sales		% to Total Revenue		Amount			% to Net Sales		% to Total Revenue
	(dollars in millions, except per share figures)
Net sales	$	4,982						$	5,348
Other revenue	191			3.8	%			217			4.1	%
Total revenue	5,173							5,565
Cost of sales	(2,988)			(60.0)	%			(3,231)			(60.4)	%
Selling, general and administrative expenses	(1,950)					(37.7)	%	(1,905)					(34.2)	%
Gains on sale of real estate	11					0.2	%	42					0.8	%
Impairment, restructuring and other costs	(2)					—	%	(8)					(0.1)	%
Operating income	244					4.7	%	463					8.3	%

Diluted earnings per share	$	0.56						$	0.98

Supplemental Financial Measures
Gross margin (a)	$	1,994		40.0	%			$	2,117		39.6	%
Digital sales as a percentage of net sales	32		%					33		%
Increase (decrease) in comparable sales	(7.9)		%					12.8		%

Supplemental Non-GAAP Financial Measures
Increase (decrease) in comparable sales on an owned-plus-licensed basis	(7.2)		%					12.4		%
Adjusted diluted earnings per share	$	0.56						$	1.08
EBITDA	$	466						$	676
Adjusted EBITDA	$	468						$	684


	First Quarter of 2023			First Quarter of 2022
SG&A expenses	$	(1,950)		$	(1,905)
As a percent to total revenue	37.7		%	34.2		%


	First Quarter of 2023		First Quarter of 2022
Net interest expense	$	(37)	$	(47)


	13 Weeks Ended
	April 29, 2023		April 30, 2022
	(millions)
401(k) Qualified Defined Contribution Plan	$	23	$	22
Pension Plan

Interest cost	$	22	$	14
Expected return on assets	(34)		(31)
Recognition of net actuarial loss	2		4
	$	(10)	$	(13)
Supplementary Retirement Plan
Interest cost	5		4
Recognition of net actuarial loss	2		3
	$	7	$	7

Total Retirement Expense	$	20	$	16

Postretirement Obligations
Interest cost	1		—
Recognition of net actuarial gain	(2)		(1)

	$	(1)	$	(1)

SEC Form 10-Q filed by Macy's Inc