Here are 1-3 brief analogies to describe Macy's (symbol: M):

• A traditional department store chain, similar to a more accessible Nordstrom or a higher-end Kohl's.

• An omni-channel retailer specializing in fashion, home goods, and beauty, akin to Target's non-grocery sections combined with a beauty retailer like Sephora.

• Apparel and Accessories: A wide selection of clothing, footwear, and accessories for men, women, and children.
• Cosmetics and Beauty Products: Various makeup, skincare, fragrance, and hair care items from numerous brands.
• Home Furnishings: Items for home decoration and furnishing, including furniture, bedding, bath, kitchenware, and decor.
• Other Consumer Goods: A broad range of general merchandise and consumer products typically found in department stores.
• Spa Services: Personal care and beauty treatments offered at its bluemercury beauty product and spa retail locations.

Macy's (symbol: M) sells primarily to individuals. Its customer base can be broadly categorized into the following:

1. Mainstream Department Store Shoppers: These customers are individuals seeking a wide variety of merchandise, including apparel, home goods, and beauty products, typically at mid-range price points. They often shop for everyday needs, special occasions, and gifts, valuing the convenience and selection offered by a traditional department store.

2. Affluent and Luxury Consumers: Catering to a more upscale demographic through brands like Bloomingdale's, these customers are individuals interested in high-end fashion, designer brands, premium beauty products, and luxury home furnishings. They seek quality, brand prestige, and a more curated shopping experience.

3. Value-Oriented Shoppers: This category includes individuals who are looking for discounted merchandise, clearance items, and off-price offerings. They are served by formats such as Macy's Backstage and Bloomingdale's The Outlet, where the focus is on providing brand-name goods at lower prices.

Tony Spring, Chairman and Chief Executive Officer, Macy's, Inc. Tony Spring assumed the role of Chief Executive Officer of Macy's, Inc. in February 2024 and was appointed Chairman of the Board in April 2024. He previously served as President of Macy's, Inc. since March 2023. Prior to that, he was Chairman and Chief Executive Officer of Bloomingdale's from 2014-2023, overseeing all facets of Bloomingdale's, including merchandising, marketing, operations, stores, and online. In 2021, he became Executive Vice President of Macy's, Inc. and assumed oversight of Bluemercury. Spring began his career at Bloomingdale's in 1987.

Tom Edwards, Chief Operating Officer and Chief Financial Officer, Macy's, Inc. Tom Edwards was appointed Chief Operating Officer and Chief Financial Officer of Macy's, Inc. on June 22, 2025. He is responsible for a range of financial and operational functions at Macy's, Inc., including technology, supply chain, call centers, and finance. Before joining Macy's, he was Chief Financial Officer and Chief Operating Officer of Capri Holdings Limited, where he spearheaded the acquisition and integration of Versace and Jimmy Choo. He also served as Executive Vice President and Chief Financial Officer of Brinker International, Inc., and held various finance and operations positions at Wyndham Hotel Group, Kraft Foods, and Nabisco.

Barbie Cameron, Chief Stores Officer Barbie Cameron serves as Macy's Chief Stores Officer, leading store operations across the Macy's nameplate.

Nata Dvir, Chief Merchandising Officer Nata Dvir was appointed Macy's Chief Merchandising Officer in February 2021. In September 2017, Dvir was named Macy's General Business Manager for Beauty, a role in which she transformed the cosmetics and fragrance business.

Sharon Otterman, Chief Marketing Officer Sharon Otterman was appointed Macy's Chief Marketing Officer in December 2023. In this role, she oversees the company's strategic marketing, leading Macy's brand evolution and building awareness, engagement, and loyalty. She is responsible for brand activations, campaign advertising and content planning, creative, visual merchandising, branded entertainment, and media strategy, including iconic experiences like the Thanksgiving Day Parade and Macy's July 4th Fireworks. Prior to joining Macy's, Sharon served as CMO at Caesars Entertainment.

1. Intense Competition and Shifting Consumer Behavior

Macy's faces significant challenges from a rapidly evolving retail landscape, characterized by intense competition from e-commerce giants like Amazon, fast-fashion retailers, and specialized online brands. There is a pronounced shift in consumer preferences towards convenient online shopping, niche retailers, and personalized experiences, which has led to declining foot traffic in traditional department stores and a decrease in physical store sales. This fundamental change in how consumers shop and what they value puts continuous pressure on Macy's to adapt its business model.

2. Economic Pressures and Fluctuations in Consumer Spending

Macy's business is highly susceptible to macroeconomic factors, including inflation, broader economic uncertainty, and cautious consumer spending on discretionary goods. These external forces directly impact the company's ability to meet sales forecasts and can lead to reduced net sales and profitability. Additionally, trade policies, such as tariffs on imported goods, can increase merchandise costs and squeeze gross margins.

3. Execution Risk of Turnaround Strategy

Macy's is in the midst of a significant restructuring effort, known as its "Bold New Chapter" strategy, which involves closing 150 underperforming stores and reinvesting in a smaller portfolio of "go-forward" locations, as well as enhancing its omnichannel capabilities. The successful execution of this complex turnaround plan is critical for the company's future, and any missteps in workforce changes, supply chain adjustments, or maintaining customer loyalty during this transition could derail its recovery.

The accelerating market capture and competitive pressure from pure-play e-commerce and ultra-fast fashion retailers. These companies leverage highly agile supply chains, aggressive pricing strategies, rapid trend replication, and sophisticated digital-first marketing to directly compete with and often undercut traditional department stores like Macy's in key categories such as apparel and home goods. This evolving competitive landscape poses a significant threat by continuously driving down prices, demanding faster inventory turnover, and diverting customer traffic and sales, particularly among younger demographics, away from brick-and-mortar and traditional online department store channels.

• Apparel and Accessories: The United States apparel market is valued at approximately $361.68 billion in 2025 and is projected to reach nearly $458.48 billion by 2035.
• Cosmetics and Beauty Products: The U.S. cosmetics market size is anticipated to be around USD 107 billion in 2025, with projections to reach USD 155 billion by 2033. Another estimate indicates the U.S. cosmetics market size was valued at USD 61.5 billion in 2023 and is expected to exceed USD 110.7 billion by 2033.
• Home Furnishings: The U.S. household furniture market was valued at USD 91.1 billion in 2024 and is expected to grow to USD 118.6 billion by 2032. Separately, the market size of Home Furnishings Stores in the U.S. was $70.3 billion in 2025.
• Beauty Products and Spa Services (through Bluemercury): The United States spa market was valued at USD 22.16 billion in 2025 and is projected to reach USD 62.92 billion by 2035. The U.S. Health & Wellness Spa Market was valued at USD 21.29 billion in 2023.

Share Repurchases

• Macy's authorized a new $2.0 billion share repurchase program on February 22, 2022, with no expiration date.
• The company repurchased $601 million in shares during fiscal year 2023.
• As of the end of the third quarter of fiscal year 2025, Macy's had repurchased 15.4 million shares for $201 million year-to-date, with approximately $1.2 billion remaining under its $2.0 billion authorization.

Share Issuance

• Macy's shares outstanding increased by 1.22% in fiscal year 2025 to 0.282 billion shares from 0.278 billion in fiscal year 2024.
• Shares outstanding declined by 1.03% in fiscal year 2024 to 0.278 billion shares from 0.281 billion in fiscal year 2023, and by 10.48% in fiscal year 2023 to 0.281 billion shares from 0.314 billion in fiscal year 2022.

Inbound Investments

• Macy's rejected an acquisition bid of approximately $6.9 billion from Arkhouse Management Co. LP and Brigade Capital Management, LP in July 2024.
• The Board of Directors deemed the offer non-actionable and not providing compelling value, opting instead to focus on its "A Bold New Chapter" strategy.

Outbound Investments

• No significant outbound investments, such as acquisitions of other companies, were reported within the last 3-5 years.

Capital Expenditures

• Macy's reported capital expenditures of $597 million in fiscal year 2021 (ended January 2022), $1.30 billion in fiscal year 2022 (ended January 2023), $993 million in fiscal year 2023 (ended February 2024), and $518 million in fiscal year 2024 (ended February 2025).
• Capital expenditures for the year-to-date third quarter of fiscal year 2025 were $525 million.
• The primary focus of capital expenditures is on investments in continuing stores, smaller-format stores, cost reductions, supply chain enhancements, and luxury brand expansion, all part of the "Bold New Chapter" strategy.