Q4 2025 Macy's Inc Earnings Call

March 18, 2026

To the Macy's, Inc. Fourth quarter 2025 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Speaker #1: Along with our fourth quarter 2025 press release, a Form 8-K has been filed with the Securities and Exchange Commission, and a presentation has been posted on the Investor section of our website, macysinc.com, and is being displayed live during today's webcast.

Operator 1: Greetings, welcome to the Macy's, Inc. Q4 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Pamela Quintiliano, Vice President of Investor Relations. Pamela, you may now begin.

Operator: Greetings, welcome to the Macy's, Inc. Q4 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Pamela Quintiliano, Vice President of Investor Relations. Pamela, you may now begin.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Operator: Greetings, and welcome to the Macy's, Inc. Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Pamela Quintiliano, Vice President of Investor Relations. Pamela, you may now begin.

Speaker #1: Unless otherwise noted, the comparisons we provide will be versus 2024. All references to our prior expectations, outlook, or guidance refer to information provided on our December 3rd earnings call.

As a reminder, this call is being recorded.

I would now like to turn the call over to Pamela Quintal Yano, Vice President of Investor Relations. Pamela you may now begin.

Thank you operator, good morning, everyone and thanks for joining US with me on the call today are Tony Spring, our chairman and CEO and Tom Edwards, Our C O O and CFO.

Speaker #1: On today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings presentation and SEC filings available at www.macysinc.com/investors.

Pamela Quintiliano: Thank you, operator. Good morning, everyone, and thanks for joining us. With me on the call today are Tony Spring, our Chairman and CEO, and Tom Edwards, our COO and CFO. Along with our Q4 2025 press release, a Form 8-K has been filed with the Securities and Exchange Commission, and a presentation has been posted on the investor section of our website, macysinc.com, and is being displayed live during today's webcast. Unless otherwise noted, the comparisons we provide will be versus 2024. All references to our prior expectations, outlook, or guidance refer to information provided on our 3 December earnings call. On today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings presentation and SEC filings available at www.macysinc.com/investors.

Along with our fourth quarter 2025 press release, a form 8-K has been filed with the Securities and Exchange Commission and the presentation is influences on the investors section of our website Macy's Inc. Dot com is being displayed live during today's webcast.

Speaker #1: All references to comp sales throughout today's prepared remarks represent comparable owned plus license plus marketplace sales or OLM unless otherwise noted. Go forward, Macy's, s, Inc.'s comparable sales and other go-forward metrics include Macy's go-forward locations in digital and Bloomingdale's and Blue Mercury name plates inclusive of stores in digital.

Unless otherwise noted comparisons we provide will be versus 'twenty 'twenty four all references to our prior expectations outlook or guidance refer to information provided on our December 3rd earnings call.

Speaker #1: As a reminder, we recently announced an update to our non-GAAP financial disclosures, the details of which are available in a Form 8-K filed on February 18th.

On today's call, we will refer to certain non-GAAP financial measures reckon.

Reconciliations of these measures can be found in our earnings presentation, and our SEC filings available at Www Dot Macy's, Inc. Dot com Backflash investors.

Speaker #1: These changes do not impact our historical or future GAAP metrics and disclosures. The updated disclosures, which encompass comparable sales, OLM dollar sales, revenues, and non-GAAP earnings, are intended to both simplify disclosures and provide increased clarity on the key metrics that support our growth profile and go-forward operating performance.

All references comp sales throughout today prepared remarks represent comparable owned plus license plus marketplace sales R. O L M unless otherwise no.

Pamela Quintiliano: All references to comp sales throughout today's prepared remarks represent comparable owned plus licensed plus marketplace sales or OLM, unless otherwise noted. Going forward, Macy's, Inc.'s comparable sales and other go-forward metrics include Macy's go-forward locations in digital and Bloomingdale's and Bluemercury nameplates, inclusive of stores in digital. As a reminder, we recently announced an update to our non-GAAP financial disclosures, the details of which are available in a Form 8-K filed on 18 February 2024. These changes do not impact our historical or future GAAP metrics and disclosures. The updated disclosures, which encompass comparable sales, OLM dollar sales, revenues, and non-GAAP earnings, are intended to both simplify disclosures and provide increased clarity on the key metrics that support our growth profile and go-forward operating performance. For Q4 and full year 2025 results, we reported non-GAAP earnings consistent with previous disclosures and prior guidance.

Go forward Macy's, Inc. Comparable sales and other go forward metrics include Macys go forward locations in digital and Bloomingdales, and Blue Mercury nameplates inclusive of stores and digital.

Speaker #1: For the fourth quarter and full year 2025, we reported non-GAAP earnings consistent with previous disclosures and prior guidance. All prior and updated non-GAAP metrics will be available in our investor presentation located on our website.

Pamela Quintiliano: All references to comp sales throughout today's prepared remarks represent comparable owned plus licensed plus marketplace sales, or OLM, unless otherwise noted. Going forward, Macy's, Inc.'s comparable sales and other going-forward metrics include Macy's going-forward locations in digital and Bloomingdale's and Bluemercury nameplates, inclusive of stores in digital. As a reminder, we recently announced an update to our non-GAAP financial disclosures, the details of which are available in a Form 8-K filed on 18 February 2024. These changes do not impact our historical or future GAAP metrics and disclosures. The updated disclosures, which encompass comparable sales, OLM dollar sales, revenues, and non-GAAP earnings, are intended to both simplify disclosures and provide increased clarity on the key metrics that support our growth profile and going-forward operating performance. For Q4 and full year 2025 results, we reported non-GAAP earnings consistent with previous disclosures and prior guidance.

As a reminder, we recently announced an update to our non-GAAP financial disclosures the details of which are available in our form 8-K filed on February 18th.

These changes do not impact our historical or future GAAP metrics and the Sculpsure.

Speaker #1: Beginning with the first quarter of fiscal 2026, adjusted earnings metrics will reflect our new non-GAAP metrics. Please note that all forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

The updated disclosures, which encompass comparable sales O L. M dollar sales revenues and non-GAAP earnings are intended to both simplify disclosures and provide increased clarity on the key metrics that support our growth profile and go forward operating performance.

Speaker #1: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions mentioned today. A detailed discussion of these factors and uncertainties is contained in our filings with the SEC.

The fourth quarter and full year 2025 results, we reported non-GAAP earnings consistent with previous disclosures in prior guidance.

Speaker #1: Today's call is being webcast on our website. A replay will be available approximately two hours after the conclusion of this call. With that, let me turn it over to Tony.

All prior and updated non-GAAP metrics will be available in our investor presentation located on our website.

Pamela Quintiliano: All prior and updated non-GAAP metrics will be available in our investor presentation located on our website. Beginning with the first quarter of fiscal 2026, adjusted earnings metrics will reflect our new non-GAAP metrics. Please note that all forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions mentioned today. A detailed discussion of these factors and uncertainties is contained in our filings with the SEC. Today's call is being webcast on our website. A replay will be available approximately 2 hours after the conclusion of this call. With that, let me turn it over to Tony.

Beginning with the first quarter of fiscal 2026 adjusted earnings metrics will reflect our new non-GAAP metrics. Please note that all forward looking statements are subject to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 East.

Speaker #2: Good morning, everyone, and thank you for joining us today. 2025 was a year of transformation. Solid execution of our bold New Chapter strategy, supported by our strong balance sheet, drove enterprise-wide improvements.

Pamela Quintiliano: All prior and updated non-GAAP metrics will be available in our investor presentation located on our website. Beginning with Q1 of fiscal 2026, adjusted earnings metrics will reflect our new non-GAAP metrics. Please note that all forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions mentioned today. A detailed discussion of these factors and uncertainties is contained in our filings with the SEC. Today's call is being webcast on our website. A replay will be available approximately two hours after the conclusion of this call. With that, let me turn it over to Tony.

These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions mentioned today.

Speaker #2: We're gaining measurable traction and delivering meaningfully positive results. As we look back on 2025, we achieved several milestones. First, we returned to positive comparable sales for total Macy's, Inc. and Macy's nameplate, marking important inflection points.

A detailed discussion of these factors and uncertainties is contained in our filings with the SEC.

Today's call is being webcast on our website a replay will be available approximately two hours. After the conclusion of this call with that let me turn it over to Tony.

Speaker #2: Second, we achieved better-than-expected top-line and bottom-line results in every quarter, demonstrating strong and consistent execution. Third, we delivered adjusted diluted EPS well above our most recent guidance. Results were also above our initial guidance, despite the unanticipated impact of tariffs and lower-than-expected asset sale gains.

Good morning, everyone and thank you for joining US today 2025 was a year of transformation solid execution of our bold new chapter strategy supported by our strong balance sheet drove enterprise wide improvements, we're gaining measurable traction and delivering meaningfully positive results.

Tony Spring: Good morning, everyone, and thank you for joining us today. 2025 was a year of transformation. Solid execution of our Bold New Chapter strategy, supported by our strong balance sheet, drove enterprise-wide improvements. We're gaining measurable traction and delivering meaningfully positive results. As we look back on 2025, we achieved several major milestones. First, we returned to positive comparable sales for total Macy's, Inc. and Macy's nameplate, marking an important inflection point. Second, we achieved better-than-expected top line and bottom line results in every quarter, demonstrating strong and consistent execution. Third, we delivered adjusted diluted EPS well above our most recent guidance. Results were also above our initial guidance, despite the unanticipated impact of tariffs and lower-than-expected asset sale gains. I'm thankful to our colleagues. Their leadership, talent, and commitment are the driving force behind our performance.

Speaker #2: I'm thankful to our colleagues. Their leadership, talent, and commitment are the driving force behind our performance. Our teams have worked collaboratively with our partners to deliver the bold new chapter, and together we are making meaningful progress towards our long-term, sustainable, profitable growth.

As we look back on 2025, we achieved several major milestones.

First we returned to positive comparable sales for total Macy's, Inc, and Macy's nameplate marketing important inflection point.

We achieved better than expected topline and bottomline results in every quarter, demonstrating strong and consistent execution and third we delivered adjusted diluted EPS well above our most recent guidance results were also above our initial guidance. Despite the unanticipated impact of tariffs and lower than expected asset sale gain.

Speaker #2: Now, let me provide a brief overview of fourth quarter results before turning to our full-year performance and fiscal 2026 expectations. In the fourth quarter, Macy's, Inc. net sales, comparable sales, and core adjusted EBITDA all exceeded guidance.

Speaker #2: Results were driven by better-than-expected performance across key line items and positive go-forward comparable sales at each nameplate, led by Bloomingdale's impressive 9.9% growth.

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I'm thankful to our colleagues their leadership talent and commitment are the driving force behind our performance. Our teams have worked collaboratively with our partners to deliver the bold new chapter and together, we are making meaningful progress towards our long term sustainable profitable growth.

Speaker #2: Adjusted diluted EPS of $1.67 was well above our guidance range of $1.35 to $1.55. During the fourth quarter, customers responded favorably to our merchandising, marketing, and promotional events.

Tony Spring: Our teams have worked collaboratively with our partners to deliver the Bold New Chapter, and together, we are making meaningful progress towards our long-term sustainable profitable growth. Now let me provide a brief overview of Q4 results before turning to our full year performance and fiscal 2026 expectations. In Q4, Macy's, Inc. net sales, comparable sales, and core adjusted EBITDA all exceeded guidance. Results were driven by better-than-expected performance across key line items and positive go-forward comparable sales at each nameplate, led by Bloomingdale's impressive 9.9% growth. Adjusted diluted EPS of $1.67 was well above our guidance range of $1.35 to $1.55. During Q4, customers responded favorably to our merchandising, marketing, and promotional events, supported by an improved omni-channel shopping experience.

Now let me provide a brief overview of fourth quarter results before turning to our full year performance in fiscal 2026 expectations.

Speaker #2: Supported by an improved omnichannel shopping experience. Macy's Thanksgiving Day Parade drew a record $34 million plus viewers, and had over 3 billion earned social media impressions, up about 30% to last year.

Tony Spring: Our teams have worked collaboratively with our partners to deliver A Bold New Chapter, and together, we are making meaningful progress towards our long-term sustainable profitable growth. Now let me provide a brief overview of Q4 results before turning to our full year performance and fiscal 2026 expectations. In the Q4, Macy's, Inc. net sales, comparable sales, and core adjusted EBITDA all exceeded guidance. Results were driven by better-than-expected performance across key line items and positive go-forward comparable sales at each nameplate, led by Bloomingdale's impressive 9.9% growth. Adjusted diluted EPS of $0.67 was well above our guidance range of $0.35 to $0.55. During the Q4, customers responded favorably to our merchandising, marketing, and promotional events, supported by an improved omnichannel shopping experience.

In the fourth quarter of Macy's, Inc. Net sales comparable sales and core adjusted EBITDA all exceeded guidance.

Results were driven by better than expected performance across key line items and positive go forward comparable sales at each nameplate led by bloomingdales impressive 9.9% growth.

Speaker #2: We leveraged the power of the parade into our retail offerings. Holiday destination categories, including fragrances, jewelry, and handbags, outperformed. Other highlights included Women's Contemporary, Denim, Dresses, and Children's.

Adjusted diluted EPS of $1 67 was well above our guidance range of $1 35 to $1 55.

During the fourth quarter customers responded favorably to our merchandising marketing and promotional events supported by an improved omnichannel shopping experience.

Speaker #2: At Bloomingdale's, our Happy Together campaign generated roughly $15 billion unique impressions per month and earned media for November and December. Our Burberry and Bloomingdale's partnership generated buzz through its in-store pop-ups and exclusive products.

Macy's Thanksgiving day parade to a record 34 million plus viewers and had over 3 billion earned social media impressions up about 30% to last year.

Speaker #2: While almost every category had positive comps in the quarter, standouts included Fragrances, Women's Contemporary, Designer Apparel, and Fine Jewelry. Fourth-quarter performance wrapped up a successful second year of our bold New Chapter strategy.

Tony Spring: The Macy's Thanksgiving Day Parade drew a record 34 million-plus viewers and had over 3 billion earned social media impressions, up about 30% to last year. We leveraged the power of the parade into our retail offerings. Holiday destination categories, including fragrances, jewelry, and handbags outperformed. Other highlights included women's contemporary, denim, dresses, and children's. At Bloomingdale's, our Happy Together campaign generated roughly 15 billion unique impressions per month in earned media for November and December. Our Burberry and Bloomingdale's partnership generated buzz through its in-store pop-ups and exclusive products. While almost every category had positive comps in the quarter, standouts included fragrances, women's contemporary, designer apparel, and fine jewelry. Q4 performance wrapped up a successful second year of our Bold New Chapter strategy. For fiscal 2025, we exceeded expectations on all key line items, including net sales, comparable sales, EBITDA, and core adjusted EBITDA.

We leveraged the power of the parade into our retail offerings holiday destination categories, including fragrances jewelry and handbags outperformed other highlights included women's contemporary denim dresses and childrens.

Speaker #2: For fiscal 2025, we exceeded expectations on all key line items, including net sales, comparable sales, EBITDA, and core adjusted EBITDA. And adjusted diluted EPS of $2.32 was well above our most recent guidance of $2 to $2.20.

Tony Spring: Macy's Thanksgiving Day Parade drew a record 34 million-plus viewers and had over 3 billion earned social media impressions, up about 30% to last year. We leveraged the power of the parade into our retail offerings. Holiday destination categories, including fragrances, jewelry, and handbags, outperformed. Other highlights included women's contemporary, denim, dresses, and children's. At Bloomingdale's, our Happy Together campaign generated roughly 15 billion unique impressions per month in earned media for November and December. Our Burberry and Bloomingdale's partnership generated buzz through its in-store pop-ups and exclusive products. While almost every category had positive comps in the quarter, standouts included fragrances, women's contemporary, designer apparel, and fine jewelry. Q4 performance wrapped up a successful second year of our A Bold New Chapter strategy. For fiscal 2025, we exceeded expectations on all key line items, including net sales, comparable sales, EBITDA, and core adjusted EBITDA.

At Bloomingdale's are happy together campaign generated roughly 15 billion unique impressions per month and earned media for November and December.

Our Burberry and Bloomingdale's partnership generated buzz through its in store pop ups and exclusive products.

Speaker #2: Now let's review how our strategic pillars drove annual results, beginning with strengthening and reimagining Macy's. Macy's nameplate achieved 0.6% go-forward comparable sales growth, representing a 190 basis point improvement versus last year, and a 690 basis point improvement on a two-year basis.

While almost every category had positive comps in the quarter standouts included fragrances women's contemporary designer apparel and fine jewelry fourth quarter performance wrapped up a successful second year of our bold new chapter strategy for fiscal 2025, we exceeded expectations on all key line items, including net sales comparable sales.

Speaker #2: Performance was led by the reimagined 125 locations and digital. The reimagined 125 comparable sales grew 1%. Stores that have received initiatives delivered positive comps in seven of the past eight quarters and serve as a strong proof point of our ability to return to growth.

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And adjusted diluted EPS of $2.32 was well above our most recent guidance of $2 to $2 20.

Tony Spring: An adjusted diluted EPS of $2.32 was well above our most recent guidance of $2 to $2.20. Now let's review how our strategic pillars drove annual results, beginning with strengthening and reimagining Macy's. Macy's nameplate achieved 0.6% go forward comparable sales growth, representing a 190 basis point improvement versus last year and a 690 basis point improvement on a two-year basis. Performance was led by the reimagined 125 locations in digital. The reimagined 125 comparable sales grew 1%. Stores that have received initiatives delivered positive comps in 7 of the past 8 quarters and serve as a strong proof point of our ability to return to growth. Performance reflects our customer-led focus, including clear and purposeful changes at Macy's. We've improved our assortment relevancy.

Speaker #2: Performance reflects our customer-led focus, including clear and purposeful changes at Macy's. We've improved our assortment relevancy, we're investing in staffing and events, and we're leveraging local market strengths.

Now, let's review, how our strategic pillars drove annual results, beginning with strengthening and re imagining Macy's.

Macy's nameplate achieve 0.6% go forward comparable sales growth, representing 190 basis point improvement versus last year, and a 690 basis point improvement on a two year basis performance was led by the re imagine 125 locations and digital re imagine one twenty-five comparable sales grew 1% stores.

Tony Spring: An adjusted diluted EPS of $2.32 was well above our most recent guidance of $2 to $2.20. Now let's review how our strategic pillars drove annual results, beginning with strengthening and reimagining Macy's. Macy's nameplate achieved 0.6% go-forward comparable sales growth, representing a 190 basis point improvement versus last year and a 690 basis point improvement on a two-year basis. Performance was led by the reimagined 125 locations in digital. The reimagined 125 comparable sales grew 1%. Stores that have received initiatives delivered positive comps in seven of the past eight quarters and serve as a strong proof point of our ability to return to growth. Performance reflects our customer-led focus, including clear and purposeful changes at Macy's.

Speaker #2: These initiatives are having a halo effect on Macy's omnichannel business and contributing to positive digital comparable sales results. Speaking of digital, Macy's digital channel represents approximately one-third of our annual sales.

Speaker #2: It is benefiting from a modernized Macys.com, inspired by what we're doing in stores. Over the past year, we have shifted to a more editorialized approach that reinforces our passion authority and facilitates shopping across categories, that drives commerce.

That have received initiatives delivered positive comps in seven of the past eight quarters and serve as a strong proof point of our ability to return to growth.

Performance reflects our customer led focus including clearer and purposeful changes at Macy's.

Speaker #2: Across stores and digital, we are emphasizing products and experiences. Our inventory composition and in-stocks have improved. We have a better balance of newness and evergreen product and have further refined our assortments and brand matrix.

We've improved our assortment relevancy, we're investing in staffing and events and we're leveraging local market strengths.

Tony Spring: We're investing in staffing and events, and we're leveraging local market strengths. These initiatives are having a halo effect on Macy's omnichannel business and contributing to positive digital comparable sales results. Speaking of digital, Macy's digital channel represents approximately 1/3 of our annual sales. It is benefiting from a modernized macys.com inspired by what we're doing in stores. Over the past year, we have shifted to a more editorialized approach that reinforces our fashion authority and facilitates shopping across categories that drives commerce. Across stores and digital, we are emphasizing products and experiences. Our inventory composition and in-stocks have improved. We have a better balance of newness and evergreen product and have further refined our assortments and brand matrix. In 2025, we introduced 60 new brands, including abercrombie kids, MFK, BCBG, and Good American.

These initiatives are having a halo effect on macys, omnichannel business and contributing to positive digital comparable sales results.

Speaker #2: In 2025, we introduced 60 new brands, including Abercrombie Kids, MFK, BCBG, and Good American. At the same time, we expanded distribution on top existing brand partners such as Iveco Lafite, Sam Edelman, and Donna Karan, while we continue to edit less productive brands.

A digital Macys digital channel represents approximately one third of our annual sales. It is benefiting from a modernized Macy's dot com inspired by what we're doing in stores over the past year, we have shifted to a more editorialized approach that reinforces our fashion authority and facilitate jobbing across.

Tony Spring: We've improved our assortment relevancy, we're investing in staffing and events, and we're leveraging local market strengths. These initiatives are having a halo effect on Macy's omnichannel business and contributing to positive digital comparable sales results. Speaking of digital, Macy's digital channel represents approximately 1/3 of our annual sales. It is benefiting from a modernized macys.com inspired by what we're doing in stores. Over the past year, we have shifted to a more editorialized approach that reinforces our fashion authority and facilitates shopping across categories that drives commerce. Across stores and digital, we are emphasizing products and experiences. Our inventory composition and in-stocks have improved. We have a better balance of newness and evergreen product and have further refined our assortments and brand matrix. In 2025, we introduced 60 new brands, including abercrombie kids, MFK, BCBG, and Good American.

Speaker #2: Our omnichannel customer experience is supported by investments in our colleagues. We've rolled out enhanced education, a tiered approach to staffing and events, and dedicated frontline colleagues to specific merchandise areas.

Aries that drives commerce across stores and digital we are emphasizing products and experiences our inventory composition and in stocks have improved with a better balance of newness and evergreen product and have further refined our assortments and brand matrix in 2025, we introduced 60, new brands, including Abercrombie Kids Mfk.

Speaker #2: In addition, we're taking a more localized approach to provide store-level empowerment and deliver against direct customer preferences in each of the markets we serve.

Speaker #2: This year, we achieved our best net promoter score on record. We're proud of the results and our deep customer engagement. We had approximately 900,000 respondents participate in surveys throughout the year, and we remain committed to continuous improvement.

We see BG and good American at the same time, we expanded distribution on top existing brand partners, such as <unk>, Sam Edelman and Donna Karan, while we continue to edit less productive brands.

Tony Spring: At the same time, we expanded distribution on top existing brand partners such as Avec Les Filles, Sam Edelman, and Donna Karan, while we continued to edit less productive brands. Our omnichannel customer experience is supported by investments in our colleagues. We've rolled out enhanced education, a tiered approach to staffing and events, and dedicated frontline colleagues to specific merchandise areas. In addition, we're taking a more localized approach to provide store-level empowerment and deliver against direct customer preferences in each of the markets we serve. This year, we achieved our best Net Promoter Score on record. We're proud of the results and our deep customer engagement. We had approximately 900,000 respondents participate in surveys throughout the year, and we remain committed to continuous improvement. As I reflect on 2025, Macy's has a clear, well-defined strategy that is gaining traction.

Speaker #2: As I reflect on 2025, Macy's has a clear, well-defined strategy that is gaining traction. When combined with our strong financial foundation, I am confident we can further build momentum.

Our omnichannel customer experience is supported by investments in our colleagues we've rolled out enhanced education, a tiered approach to staffing and events and dedicated frontline colleagues to specific merchandise areas. In addition, we're taking a more localized approach to provide store level empowerment and deliver against direct customer preferences.

Speaker #2: Now, turning to our second pillar of strategy: accelerating and differentiating luxury. In 2025, Bloomingdale's achieved 7.4% comparable sales growth, representing a 490 basis point improvement versus last year, and a 1,030 basis point improvement on a two-year basis.

And each of the markets we serve.

This year, we achieved our best net promoter score on record we're proud of the results and our deep customer engagement. We had approximately 900000 respondents participate in surveys throughout the year and we remain committed to continuous improvement.

Speaker #2: Strength was broad-based across stores and digital, with growth in almost all product categories. Our Bloomingdale's strategy is anchored on being the local leader in the markets we serve.

As I reflect on 2025, Macy's has a clear well defined strategy that is gaining traction.

Speaker #2: We have a clear emphasis on discovery, newness, and connection with the premium, contemporary to luxury customer. Over the past year, we have raised the bar on curation.

When combined with our strong financial Foundation I'm confident we can further build momentum.

Tony Spring: When combined with our strong financial foundation, I am confident we can further build momentum. Now turning to our second pillar of strategy, accelerating and differentiating luxury. In 2025, Bloomingdale's achieved 7.4% comparable sales growth, representing a 490 basis point improvement versus last year and a 1,030-point improvement on a two-year basis. Strength was broad-based across stores and digital, with growth in almost all product categories. Our Bloomingdale's strategy is anchored on being the local leader in the markets we serve. We have a clear emphasis on discovery, newness, and connection with the premium contemporary to luxury customer. Over the past year, we have raised the bar on curation. At the same time, we've deepened brand partnerships and further invested in experiences. This approach is resonating. We continue to gain market share across brands, categories, and regions.

Now turning to our second pillar of the strategy accelerating a differentiating luxury.

Speaker #2: At the same time, we've deepened brand partnerships and further invested in experiences. This approach is resonating. We continue to gain market share across brands, categories, and regions.

In 'twenty twenty-five bloomingdale's achieved 7.4% comparable sales growth, representing a 490 basis point improvement versus last year, and a 1030 point improvement on a two year basis strength was broad based across stores and digital with growth in almost all product categories.

Speaker #2: Our unique multi-generational audience is drawn to our inviting and vibrant shopping environment and compelling assortments. During the year, we introduced new brands, including Toteme, Christian Louboutin, Victoria Beckham Beauty, Skims, Messika, and Viori, just to name a few.

Tony Spring: When combined with our strong financial foundation, I am confident we can further build momentum. Now turning to our second pillar of strategy, accelerating and differentiating luxury. In 2025, Bloomingdale's achieved 7.4% comparable sales growth, representing a 490 basis points improvement versus last year and a 1,030-point improvement on a two-year basis. Strength was broad-based across stores and digital, with growth in almost all product categories. Our Bloomingdale's strategy is anchored on being the local leader in the markets we serve. We have a clear emphasis on discovery, newness, and connection with the premium contemporary to luxury customer. Over the past year, we have raised the bar on curation. At the same time, we've deepened brand partnerships and further invested in experiences. This approach is resonating. We continue to gain market share across brands, categories, and regions.

Our Bloomingdale strategy is anchored on being the local leader in the markets we serve.

We have a clear emphasis on discovery newness and connection with the premium contemporary to luxury customer over the past year. We have raised the borrowing duration at the same time, we've deepen brand partnerships and further invested in experiences.

Speaker #2: These brands have inspired existing customers, attracted new ones, and further strengthened Bloomingdale's relevancy. It's an exciting time at Bloomingdale's. Our team is strong and has never felt better.

Speaker #2: We have a highly loyal and engaged customer base, and excellent vendor partnerships. We also have an omnichannel roadmap for growth. Recent performance demonstrates how a disciplined focus, clear brand strategy, and consistent execution can drive results.

This approach is resonating we continue to gain market share across brands categories and regions. Our unique multi generational audience is drawn to our inviting and vibrant shopping environment and compelling assortments.

Tony Spring: Our unique multi-generational audience is drawn to our inviting and vibrant shopping environment and compelling assortments. During the year, we introduced new brands including Totême, Christian Louboutin, Victoria Beckham Beauty, SKIMS, Messika, and Vuori, just to name a few. These brands have inspired existing customers, attracted new ones, and further strengthened Bloomingdale's relevancy. It's an exciting time at Bloomingdale's. Our team is strong and has never felt better. We have a highly loyal and engaged customer base and excellent vendor partnerships. We also have an omnichannel roadmap for growth. Recent performance demonstrates how a disciplined focus, clear brand strategy, and consistent execution can drive results. We are well-positioned to build on this foundation and deliver sustained performance. Rounding out the conversation on luxury, Bluemercury achieved 1.6% annual comparable sales growth. Results continue to be driven by dermatological skincare and fragrances including SkinCeuticals, Dr.

Speaker #2: We are well positioned to build on this foundation and deliver sustained performance. Rounding out the conversation on luxury, Bloom Mercury achieved 1.6% annual comparable sales growth. Results continue to be driven by dermatological skin care and fragrances, including Skin Cuticles, Dr. Diamond's Medicine, Cecilia Paris, and Perfume de Marly.

During the year, we introduce new brands, including to attempt Christa <unk>, Victoria Beckham beauty Skims Mexica and we already just to name a few.

These brands have inspired existing customers attracted new ones and further strengthen bloomingdale's relevancy.

An exciting time at Bloomingdale's, our team is strong and has never felt better we have a highly loyal and engaged customer base and excellent vendor partnerships. We also have an omnichannel roadmap for growth recent performance demonstrates how a disciplined focus clear brand strategy and consistent execution can drive results.

Speaker #2: We're also encouraged by the performance in our new stores, which continue to post growth as we iterate on assortments and develop each store's client base.

Speaker #2: The third pillar of our strategy is simplifying and modernizing end-to-end operations to improve customer service and drive greater efficiencies. Initiatives are delivering results. As our business continues to evolve, we are expanding the aperture of end-to-end to encompass a broader view of organizational excellence and operational efficiency.

We are well positioned to build on this foundation and deliver sustained performance.

Rounding out the conversation on luxury Blue Mercury achieved 1.6% annual comparable sales growth results.

Our results continued to be driven by dermatological skin care and fragrances, including skin suitor goals Doctor Diamond's Medicine, just Lee of Paris and performed the Marley.

Speaker #2: This continues to incorporate the use of AI, where we are building capabilities throughout the organization. The team has walked me through over 35 different use cases, all of which are designed to support how customers shop and how our colleagues serve them.

We're also encouraged by the performance in our new stores, which continue to post growth as we iterate on assortments and develop each doors client base.

Tony Spring: Diamond's Metacine, Sisley Paris, and Parfums de Marly. We are also encouraged by the performance in our new stores, which continue to post growth as we iterate on assortments and develop each store's client base. The third pillar of our strategy is simplifying and modernizing end-to-end operations to improve customer service and drive greater efficiencies. Initiatives are delivering results. As our business continues to evolve, we are expanding the aperture of end-to-end to encompass a broader view of organizational excellence and operational efficiency. This continues to incorporate the use of AI, where we are building capabilities throughout the organization. The team has walked me through over 35 different use cases, all of which are designed to support how customers shop and how our colleagues serve them, and I'm excited about what's to come. Looking to fiscal 2026, we are focused on the factors in our control.

Speaker #2: And I'm excited about what's to come. Looking to fiscal 2026, we are focused on the factors in our control. We continue to execute our Bolder Chapter strategy.

The third pillar of our strategy.

He is simplifying and modernizing end to end operations to improve customer service and drive greater efficiencies.

Tony Spring: Diamond's Metacine, Sisley-Paris, and Parfums de Marly. We are also encouraged by the performance in our new stores, which continue to post growth as we iterate on assortments and develop each store's client base. The third pillar of our strategy is simplifying and modernizing end-to-end operations to improve customer service and drive greater efficiencies. Initiatives are delivering results. As our business continues to evolve, we are expanding the aperture of end-to-end to encompass a broader view of organizational excellence and operational efficiency. This continues to incorporate the use of AI, where we are building capabilities throughout the organization. The team has walked me through over 35 different use cases, all of which are designed to support how customers shop and how our colleagues serve them. I'm excited about what's to come. Looking to fiscal 2026, we are focused on the factors in our control.

Speaker #2: We'll build on what's been working, including our go-forward fleet, product, and brand relevancy, and our improved omnichannel experiences and messaging. This will be supported by our strong culture and seasoned leadership team.

Initiatives are delivering results.

As our business continues to evolve we are expanding the aperture of end to end to encompass a broader view of organizational excellence and operational efficiency.

This continues to incorporate the use of AI, where we are building capabilities throughout the organization.

Speaker #2: At Macy's, we're confident in the reimagined location's ability to deliver profitable growth. Earlier this year, we introduced initiatives to an additional 75 locations. Creating the reimagined 200.

Team is walk me through over 35 different use cases, all of which are designed to support how customer shop, and how our colleagues serve them and I'm excited about what's to come.

Speaker #2: Now, nearly 60% of our go-forward Macy's store base has the full suite of initiatives, accounting for roughly 75% of our go-forward Macy's store sales.

Looking to fiscal 'twenty twenty-six we're focused on the factors in our control.

We continue to execute our Boulder chapter strategy.

Speaker #2: Delivering meaningful scale to our overall business. 2026 is a year of milestones. We have the 50th anniversary of our 4th of July fireworks and the 100th anniversary of the Macy's Thanksgiving Day Parade.

We will build on whats been working including our go forward fleet product and brand relevancy.

Tony Spring: We continue to execute our Bold New Chapter strategy. We'll build on what's been working, including our go-forward fleet, product, and brand relevancy, and our improved omni-channel experiences and messaging. This will be supported by our strong culture and seasoned leadership team. At Macy's, we're confident in the reimagined location's ability to deliver profitable growth. Earlier this year, we introduced initiatives to an additional 75 locations, creating the Reimagine 200. Now, nearly 60% of our go-forward Macy's store base has the full suite of initiatives, accounting for roughly 75% of our go-forward Macy's store sales, delivering meaningful scale to our overall business. 2026 is a year of milestones. We have the 50th anniversary of our Fourth of July fireworks and the 100th anniversary of the Macy's Thanksgiving Day Parade, and we will be top of mind during these key moments as well as many others.

Our improved omnichannel experiences and messaging this.

This will be supported by our strong culture and seasoned leadership team.

Speaker #2: And we will be top of mind during these key moments as well as many others. We are calling 2026 'Celebration Start at Macy's.' In addition to the large-scale event that the whole country celebrates with us, we also have localized strategies designed to engage customers, generate excitement, increase brand loyalty, and enhance the shopping experience.

At Macy's, we're confident in the re imagine locations ability to deliver profitable growth.

Tony Spring: We continue to execute our Bold New Chapter strategy. We'll build on what's been working, including our go-forward fleet, product, and brand relevancy, and our improved omnichannel experiences and messaging. This will be supported by our strong culture and seasoned leadership team. At Macy's, we're confident in the reimagined location's ability to deliver profitable growth. Earlier this year, we introduced initiatives to an additional 75 locations, creating the Reimagine 200. Now, nearly 60% of our go-forward Macy's store base has the full suite of initiatives, accounting for roughly 75% of our go-forward Macy's store sales, delivering meaningful scale to our overall business. 2026 is a year of milestones. We have the 50th anniversary of our Fourth of July fireworks and the 100th anniversary of the Macy's Thanksgiving Day Parade, and we will be top of mind during these key moments as well as many others.

Earlier this year, we introduced initiatives to an additional 75 locations, creating the re imagine 200.

Now nearly 60% of our go forward Macys store base has the full suite of initiatives accounted for roughly 75% of our go forward Macys store sales delivering meaningful scale to our overall business.

Speaker #2: We had our first Celebration Prom Starts Here last Saturday. Customers at Herald Square and our stores across the country were able to meet their favorite content creators, explore curated prom edits, attend beauty masterclasses, and personalize their looks.

2026 is a euro milestones we have the 50th anniversary of our fourth of July fireworks and the 100th anniversary of the Macy's Thanksgiving Day Parade.

Speaker #2: These activations drove social engagement and our overall sales. Prom is just one of the many events that Macy's will host for the entire family this year.

And we will be top of mind during these key moments as well as many others. We are calling 'twenty twenty-six celebration start at Macy's. In addition to the large scale event that the whole country celebrates with US. We also have localized strategies designed to engage customers generate excitement increase brand loyalty and enhance the shopping experience.

Speaker #2: And Macy's is not celebrating alone. Last week, Bloomingdale's launched its spring fashion campaign, California Love, featuring unique experiences, exclusive products, and community-driven moments. At its heart is Surfshop, a new carousel spotlighting California-owned and inspired product.

Tony Spring: We are calling 2026 Celebrations Start at Macy's. In addition to the large-scale event that the whole country celebrates with us, we also have localized strategies designed to engage customers, generate excitement, increase brand loyalty, and enhance the shopping experience. We had our first celebration, Prom Starts Here, last Saturday. Customers at Herald Square and our stores across the country were able to meet their favorite content creators, explore curated prom edits, attend beauty master classes, and personalize their looks. These activations drove social engagement and our overall sales. Prom is just one of the many events that Macy's will host for the entire family this year. Macy's is not celebrating alone. Last week, Bloomingdale's launched its spring fashion campaign, California Love, featuring unique experiences, exclusive products, and community-driven moments. At its heart is Surf Shop, a new carousel spotlighting California-owned and inspired product.

We had our first celebration prompts starts here last Saturday customers at Herald square in our stores across the country, we're able to meet their favorite content creators explorer curated prom met its a 10 beauty masterclasses and personalize their looks.

Speaker #2: The carousel introduces 16 new California brands and 270 limited-time exclusives from customer favorites, including Vince, Citizens of Humanity, AGolde, Staud, Simkhai, Frame, and Mother. It also features an Aqua and Lisa Says Gah collaboration.

These activations drove social engagement and our overall sales problem is just one of the many events that Macy's will host for the entire family this year.

Speaker #2: Bloomingdale's has strong momentum with multiple levers for continued growth. We are a partner of choice, allowing us to introduce more new relevant and exclusive brands while expanding our points of distribution with existing brands.

And Macy's is not celebrating alone last week Bloomingdale's launch at spring Fashion campaign, California, Love featuring unique experiences exclusive products and community driven moments.

Speaker #2: Our immersive shopping environment, which invites customers to spend the day with us, is differentiated and resonates across geographies. With stores in just 14 of the top 50 designated U.S. markets, there is significant room for expansion of small-format Bloomies and outlets, and we are methodically evaluating all opportunities.

At its heart is surf shop in new Carousel, Spotlighting, California owned and inspired product.

Carousel introduces 16, New California brands 270 limited time exclusives from customer favorites, including Vince citizens humanity, a goldy starred.

Tony Spring: The carousel introduces 16 new California brands, 270 limited time exclusives from customer favorites, including Vince, Citizens of Humanity, AGOLDE, Staud, Simkhai, Frame, and Mother. It also has an Aqua and Lisa Says Gah collaboration. Bloomingdale's has strong momentum with multiple levers for continued growth. We're a partner of choice, allowing us to introduce more new relevant and exclusive brands while expanding our points of distribution with existing brands. Our immersive shopping environment, which invite customers to spend the day with us, are differentiated and resonate across geographies. With stores in just 14 of the top 50 designated US markets, there is significant room for expansion of small format Bloomingdale's and outlets, and we are methodically evaluating all opportunities. I am confident in our ability to further expand our position as a leading modern luxury shopping destination.

Speaker #2: I am confident in our ability to further expand our position as a leading modern luxury shopping destination. Now, I would like to discuss the consumer and our approach to 2026 guidance.

Tim Guy frame and mother and it also has an aqua and Lisa says GOG collaboration.

Tony Spring: Carousel introduces 16 new California brands, 270 limited time exclusives from customer favorites including Vince, Citizens of Humanity, Agolde, Staud, Simkhai, Frame, and Mother. It also has an AQUA and Lisa Says Gah collaboration. Bloomingdale's has strong momentum with multiple levers for continued growth. We're a partner of choice, allowing us to introduce more new relevant and exclusive brands while expanding our points of distribution with existing brands. Our immersive shopping environment, which invite customers to spend the day with us, are differentiated and resonate across geographies. With stores in just 14 of the top 50 designated US markets, there is significant room for expansion of small format Bloomingdale's and outlets, and we are methodically evaluating all opportunities. I am confident in our ability to further expand our position as a leading modern luxury shopping destination.

Bloomingdale's has strong momentum with multiple levers for continued growth, we're a partner of choice, allowing us to introduce more new relevant and exclusive brands, while expanding our points of distribution with existing brands, our immersive shopping environment, which invite customers to spend the day with us are differentiated and resonate across geographies with stores in just four.

Speaker #2: Thus far, our customers have remained resilient, and we are pleased with our quarter-to-date results. Our customers across nameplates skew more toward the middle and upper-income tiers.

Speaker #2: Performance remains stronger in these cohorts, while the lower tiers remain more choiceful. As we look ahead, there are many macroeconomic and geopolitical factors that could influence discretionary spend.

14 of the top 50 designated U S markets. There is significant room for expansion of small format Bloom is in outlets and we are methodically evaluating all opportunities.

Speaker #2: While we remain confident in our strategy and believe we are well-positioned to build on our recent momentum, we are taking a prudent approach to guidance.

I am confident in our ability to further expand our position as the leading modern luxury shopping destination.

Speaker #2: Our first quarter and fiscal 2026 guidance ranges support our go-forward growth initiatives while preserving flexibility to respond to changes in the competitive landscape and consumer demand.

Now I'd like to discuss the consumer and our approach to 2026 guidance.

Tony Spring: Now I would like to discuss the consumer and our approach to 2026 guidance. Thus far, our customers have remained resilient, and we are pleased with our quarter to date results. Our customers across nameplates skew more towards the middle and upper income tiers. Performance remains stronger in these cohorts, while the lower tiers remain more choiceful. As we look ahead, there are many macroeconomic and geopolitical factors that could influence discretionary spend. While we remain confident in our strategy and believe we are well-positioned to build on our recent momentum, we are taking a prudent approach to guidance. Our Q1 and fiscal 2026 guidance ranges support our go-forward growth initiatives while preserving flexibility to respond to changes in the competitive landscape and consumer demand. To close, our commitment to the Bold New Chapter is unwavering. It is delivering results.

Thus far our customers have remained resilient and we are pleased with our quarter to date results our customers across nameplate skew more towards the middle and upper income Tears performance remains stronger in these cohorts are the lower tiers remain more choice full as we look ahead. There are many macroeconomic and geopolitical factors that could influence discretionary.

Speaker #2: To close, our commitment to the bold new chapter is unwavering. It is delivering results. We have achieved four consecutive quarters of better-than-expected top-line and bottom-line performance, and three consecutive quarters of comparable sales growth led by our go-forward Macy's and Bloomingdale's business.

Tony Spring: Now I would like to discuss the consumer and our approach to 2026 guidance. Thus far, our customers have remained resilient, and we are pleased with our quarter-to-date results. Our customers across nameplates skew more towards the middle and upper income tiers. Performance remains stronger in these cohorts, while the lower tiers remain more choiceful. As we look ahead, there are many macroeconomic and geopolitical factors that could influence discretionary spend. While we remain confident in our strategy and believe we are well-positioned to build on our recent momentum, we are taking a prudent approach to guidance. Our Q1 and fiscal 2026 guidance ranges support our go-forward growth initiatives while preserving flexibility to respond to changes in the competitive landscape and consumer demand. To close, our commitment to the Bold New Chapter is unwavering. It is delivering results.

Speaker #2: In 2026, we are well-positioned to deliver further progress. Looking further ahead, our proven initiatives, strong execution, strategic clarity, and customer focus should drive sustainable growth and unlock future value creation.

Bend.

While I remain confident in our strategy and believe we are well positioned to build on our recent momentum we're taking a prudent approach to guidance our first quarter in fiscal 'twenty twenty-six guidance ranges support our go forward growth initiatives, while preserving flexibility to respond to changes in the competitive landscape and consumer demand.

Speaker #2: Now let me turn it over to Tom. Thanks, Tony, and good morning, everyone. We are encouraged by our fourth-quarter performance, which capped off a year of meaningful advancement of our Bold New Chapter strategy.

To close our commitment to the Boulder chapter is unwavering. It is delivering results. We have achieved four consecutive quarters of better than expected topline and bottomline performance and three consecutive quarters of comparable sales growth led by our go forward Macy's and bloomingdale's business in 2020 six we are well positioned to deliver.

Speaker #2: For both the quarter and the full year, we achieved better-than-expected net sales, comparable sales, go-forward comparable sales, adjusted EBITDA, and adjusted diluted EPS. Let's begin with a detailed view of the fourth quarter.

Tony Spring: We have achieved four consecutive quarters of better than expected top line and bottom line performance, and three consecutive quarters of comparable sales growth led by our go-forward Macy's and Bloomingdale's business. In 2026, we are well-positioned to deliver further progress. Looking further ahead, our proven initiatives, strong execution, strategic clarity, and customer focus should drive sustainable growth and unlock future value creation. Now let me turn it over to Tom.

Liver further progress looking further ahead, our proven initiatives strong execution strategic clarity and customer focus should drive sustainable growth and unlock future value creation.

Speaker #2: Macy's, Inc. net sales of $7.6 billion were above our guidance range of $7.35 to $7.5 billion, and compared to $7.8 billion last year. Excluding the approximately $200 million impact from the 64 non-go-forward stores that closed at the end of fiscal 2024, Macy's, Inc. sales grew 0.9%.

Tony Spring: We have achieved four consecutive quarters of better-than-expected top-line and bottom-line performance and three consecutive quarters of comparable sales growth led by our go-forward Macy's and Bloomingdale's business. In 2026, we are well-positioned to deliver further progress. Looking further ahead, our proven initiatives, strong execution, strategic clarity, and customer focus should drive sustainable growth and unlock future value creation. Now let me turn it over to Tom.

Now, let me turn it over to Tom.

Thanks, Tony and good morning, everyone.

We are encouraged by our fourth quarter performance, which capped off a year of meaningful advancement of our bold new chapter strategy.

Thomas J. Edwards: Thanks, Tony, and good morning, everyone. We are encouraged by our Q4 performance, which capped off a year of meaningful advancement of our Bold New Chapter strategy. For both the quarter and the full year, we achieved better than expected net sales, comparable sales, go-forward comparable sales, adjusted EBITDA, and adjusted diluted EPS. Let's begin with a detailed view of the Q4. Macy's, Inc. net sales of $7.6 billion were above our guidance range of $7.35 to $7.5 billion, and compared to $7.8 billion last year. Excluding the approximately $200 million impact from the 64 non-go-forward stores that closed at the end of fiscal 2024, Macy's, Inc. sales grew 0.9%. Macy's, Inc.

For both the quarter and the full year, we achieved better than expected net sales comparable sales go forward comparable sales adjusted EBITDA and adjusted diluted EPS.

Speaker #2: Macy's, Inc. comparable sales rose 1.8%, materially above our guidance for down 2.5% to flat, led by go-forward business comparable sales growth of 2% compared to guidance of down 2% to flat.

Tom Edwards: Thanks, Tony, and good morning, everyone. We are encouraged by our Q4 performance, which capped off a year of meaningful advancement of our A Bold New Chapter strategy. For both the quarter and the full year, we achieved better-than-expected net sales, comparable sales, go-forward comparable sales, adjusted EBITDA, and adjusted diluted EPS. Let's begin with a detailed view of the Q4. Macy's, Inc. net sales of $7.6 billion were above our guidance range of $7.35 to $7.5 billion and compared to $7.8 billion last year. Excluding the approximately $200 million impact from the 64 non-go-forward stores that closed at the end of fiscal 2024, Macy's, Inc. sales grew 0.9%. Macy's, Inc.

Let's begin with a detailed view of the fourth quarter Macy's Inc. Net sales of 7.6 billion were above our guidance range of 735 to $7 5 billion and compared to $7 8 billion last year.

Speaker #2: By nameplate, Macy's go-forward comparable sales rose 0.6%, including reimagined 125 growth of 0.9%. Both the first 50 and next 75 locations were positive. Bloomingdale's comparable sales rose 9.9%, better than from its best holiday result on record.

Excluding the approximately 200 million impact from the 64 non go forward stores that closed at the end of fiscal 'twenty four Macy think sales grew nine.

Speaker #2: And Bluemercury comparable sales increased 1.3%. Turning to revenue, Macy's, Inc. total revenue was $7.9 billion, down 1.1% to last year. Similar to net sales, the decline was entirely attributable to last year's store closures.

9%.

He sees and comparable sales rose, 1.8% materially above our guidance for down two and a half to flat led by go forward business comparable sales growth of 2% compared to guidance of down two to flat.

Thomas J. Edwards: Comparable sales rose 1.8%, materially above our guidance for down 2.5 to flat, led by go-forward business comparable sales growth of 2% compared to guidance of down 2 to flat. By nameplate, Macy's go-forward comparable sales rose 0.6%, including Reimagined 125 growth of 0.9%. Both the first 50 and next 75 locations were positive. Bloomingdale's comparable sales rose 9.9%, benefiting from its best holiday result on record, and Bluemercury comparable sales increased 1.3%. Turning to revenue, Macy's, Inc. total revenue was $7.9 billion, down 1.1% to last year. Similar to net sales, the decline was entirely attributable to last year's store closures. Revenues included $277 million other revenue comprised of credit card and Macy's Media Network.

Speaker #2: Revenues included $277 million. Other revenue comprised credit card and Macy's Media Network. Credit card revenue was $205 million, up 17.1% versus the prior year, driven by our healthy credit portfolio.

By nameplate Macys go forward comparable sales rose <unk>, 6%, including re imagine 125 growth of <unk>, 9%. Both the first 50 and next 75 locations were positive.

Tom Edwards: Comparable sales rose 1.8%, materially above our guidance for down 2.5 to flat, led by go-forward business comparable sales growth of 2% compared to guidance of down 2 to flat. By nameplate, Macy's go-forward comparable sales rose 0.6%, including Reimagine 125 growth of 0.9%. Both the first 50 and next 75 locations were positive. Bloomingdale's comparable sales rose 9.9%, benefiting from its best holiday result on record, and Bluemercury comparable sales increased 1.3%. Turning to revenue, Macy's, Inc. total revenue was $7.9 billion, down 1.1% to last year. Similar to net sales, the decline was entirely attributable to last year's store closures. Revenues included $277 million other revenue comprised of credit card and Macy's Media Network.

Bloomingdale's comparable sales rose nine 9% benefiting from its best holiday result on record and Blue Mercury comparable sales increased one 3%.

Speaker #2: And Macy's media network revenue was $72 million, up 12.5%. Gross margin was $2.7 billion, or 35.2% of net sales, compared to 35.7% last year.

Turning to revenue Macy's, Inc. Total revenue was $7 9 billion down one 1% to last year similar to net sales. The decline was entirely attributable to last year's store closures.

Speaker #2: Excluding an approximately 60 basis point tariff impact, which was in line with our expectations, gross margin rate would have expanded about 10 basis points.

Speaker #2: For the quarter, AUR continued to rise, driven by a favorable makeshift and positive consumer response to newness. SG&A expense of $2.4 billion declined 23 million, or 1% from last year.

Revenues included 277 million other revenue comprised of credit card and Macy's Media network.

Credit card revenue was $205 million up 17, 1% versus the prior year driven by our healthy credit portfolio and Macy's Media network revenue was 72 million up 12, 5%.

Thomas J. Edwards: Credit card revenue was $205 million, up 17.1% versus the prior year, driven by our healthy credit portfolio. Macy's Media Network revenue was $72 million, up 12.5%. Gross margin was $2.7 billion, or 35.2% of net sales, compared to 35.7% last year. Excluding an approximately 60 basis point tariff impact, which was in line with our expectations, gross margin rate would have expanded about 10 basis points. For the quarter, AUR continued to rise, driven by a favorable mix shift and positive consumer response to newness. SG&A expense of $2.4 billion declined $23 million, or 1% from last year. The decline reflected the net benefit of the 64 closed Macy's locations and ongoing expense savings initiatives.

Speaker #2: The decline reflected the net benefit of the 64 closed Macy's locations and ongoing expense savings initiatives. It was partially offset by investments in our go-forward business, which we view as critical to driving healthy and sustainable top-line growth.

Gross margin was $2 7 billion or 35, 2% of net sales compared to 35, 7% last year.

Tom Edwards: Credit card revenue was $205 million, up 17.1% versus the prior year, driven by our healthy credit portfolio. Macy's Media Network revenue was $72 million, up 12.5%. Gross margin was $2.7 billion, or 35.2% of net sales compared to 35.7% last year. Excluding an approximately 60 basis point tariff impact, which was in line with our expectations, gross margin rate would have expanded about 10 basis points. For the quarter, AUR continued to rise, driven by a favorable mix shift and positive consumer response to newness. SG&A expense of $2.4 billion declined $23 million, or 1% from last year. The decline reflected the net benefit of the 64 closed Macy's locations and ongoing expense savings initiatives.

Excluding an approximately 60 basis point tariff impact, which was in line with our expectations gross margin rate would have expanded about 10 basis points for the quarter AUR continued to rise driven by a favorable mix shift and positive consumer response to newness.

Speaker #2: As a percent of total revenue, SG&A expense was 29.8% compared to 29.7% in the prior year. During the quarter, we recognized $3 million of asset sale gains.

Speaker #2: This compares to our expectation of $15 million to $20 million, and $41 million last year, and reflects the shift in timing of certain transactions. We remain committed to optimizing our go-forward fleet and being disciplined in our approach to closing underproductive stores.

SG&A expense of $2 4 billion declined 23 million or 1% from last year. The decline reflected the net benefit of the 64 closed Macy's locations and ongoing expense savings initiatives. It was.

Speaker #2: With that, looking at fourth quarter earnings, adjusted EBITDA was $840 million, or 10.6% of total revenue. This compares to $903 million, or 11.3%, last year.

Set by investments in our go forward business, which we view as critical to driving healthy and sustainable topline growth.

Thomas J. Edwards: It was part offset by investments in our go-forward business, which we view as critical to driving healthy and sustainable top-line growth. As a percent of total revenue, SG&A expense was 29.8% compared to 29.7% in the prior year. During the quarter, we recognized $3 million of asset sale gains. This compared to our expectation for $15 to 20 million and $41 million last year and reflects the shift in timing of certain transactions. We remain committed to optimizing our go-forward fleet and being disciplined in our approach to closing underproductive stores. With that, looking at Q4 earnings, adjusted EBITDA was $840 million, or 10.6% of total revenue. This compares to $903 million or 11.3% last year.

As a percent of total revenue SG&A expense was 29, 8% compared to 29, 7% in the prior year.

Speaker #2: Adjusted EPS of $1.67 exceeded the high end of our guidance range, of $1.35 to $1.55, including a tariff impact of approximately 13 cents and a roughly 4 cent impact from lower-than-expected asset sale gains.

During the quarter, we recognized $3 million of asset sale gains this compared to our expectation for $15 million to $20 million and $41 million last year and reflects the shift in timing of certain transactions.

Tom Edwards: It was partially offset by investments in our go-forward business, which we view as critical to driving healthy and sustainable top-line growth. As a percent of total revenue, SG&A expense was 29.8% compared to 29.7% in the prior year. During the quarter, we recognized $3 million of asset sale gains. This compared to our expectation for $15 to 20 million and $41 million last year and reflects the shift in timing of certain transactions. We remain committed to optimizing our go-forward fleet and being disciplined in our approach to closing underproductive stores. With that, looking at Q4 earnings, adjusted EBITDA was $840 million or 10.6% of total revenue. This compares to $903 million or 11.3% last year.

Speaker #2: Performance was supported by our disciplined approach to cash flow, balance sheet, and capital allocation. Let's start with cash flow. Macy's, Inc. generates robust operating cash flow on an ongoing basis.

We remain committed to optimizing our go forward fleet and being disciplined in our approach to closing under productive stores.

With that looking at fourth quarter earnings adjusted EBITDA was $840 million or 10, 6% of total revenue. This compares to $903 million or 11, 3% last year.

Speaker #2: This supports our capital allocation priorities. For the year, operating cash flow was $1.4 billion versus $1.3 billion last year, and free cash flow was $797 million versus $679 million last year.

Adjusted EPS of $1 67 exceeded the high end of our guidance range of $1 35 to $1 55, including a tariff impact of approximately 13 cents and a roughly four cent impact from lower than expected asset sale gains.

Thomas J. Edwards: Adjusted EPS of $1.67 exceeded the high end of our guidance range of $1.35 to $1.55, including a tariff impact of approximately $0.13 and a roughly $0.04 impact from lower than expected asset sale gains. Performance was supported by our disciplined approach to cash flow, balance sheet, and capital allocation. Let's start with cash flow. Macy's, Inc. generates robust operating cash flow on an ongoing basis. This supports our capital allocation priorities. For the year, operating cash flow was $1.4 billion versus $1.3 billion last year, and free cash flow was $797 million versus $679 million last year. This represents a free cash flow yield of over 15%.

Speaker #2: This represents a free cash flow yield of over 15%. We achieved higher free cash flow despite monetization proceeds of $107 million, compared to $283 million last year.

Performance was supported by a disciplined approach to cash flow balance sheet and capital allocation, let's start with cash flow Macy's, Inc. Generates robust operating cash flow on an ongoing basis that supports our capital allocation priorities for the year operating cash flow was $1 4 billion versus.

Tom Edwards: Adjusted EPS of $1.67 exceeded the high end of our guidance range of $1.35 to $1.55, including a tariff impact of approximately $0.13 and a roughly $0.04 impact from lower-than-expected asset sale gains. Performance was supported by our disciplined approach to cash flow, balance sheet, and capital allocation. Let's start with cash flow. Macy's, Inc. generates robust operating cash flow on an ongoing basis. This supports our capital allocation priorities. For the year, operating cash flow was $1.4 billion versus $1.3 billion last year, and free cash flow was $797 million versus $679 million last year. This represents a free cash flow yield of over 15%.

Speaker #2: And ended the year with $1.2 billion of cash on our balance sheet. During the year, our balance sheet was further strengthened via a series of financing transactions.

Speaker #2: We now have no material long-term debt maturities until 2030. Our adjusted debt to adjusted EBITDA leverage ratio remains below our 2.5 times target, which reinforces our financial flexibility.

Is $1 3 billion last year and free cash flow was $797 million versus $679 million last year. This represents a free cash flow yield of over 15%.

Speaker #2: At year-end, inventories were $4.4 billion, down 1.3% from last year. Heading into spring, we feel good about our composition. We have more newness, less aged goods, and open-to-buy flexibility to respond to market dynamics and trends.

We achieved higher free cash flow, despite monetization proceeds of $107 million compared to $283 million last year and ended the year with $1 2 billion of cash on our balance sheet.

Thomas J. Edwards: We achieved higher free cash flow despite monetization proceeds of $107 million compared to $283 million last year and ended the year with $1.2 billion of cash on our balance sheet. During the year, our balance sheet was further strengthened via a series of financing transactions. We now have no material long-term debt maturities until 2030. Our adjusted debt to adjusted EBITDAR leverage ratio remains below our 2.5x target, which reinforces our financial flexibility. At year-end, inventories were $4.4 billion, down 1.3% from last year. Heading into spring, we feel good about our composition. We have more newness, less aged goods, and open-to-buy flexibility to respond to market dynamics and trends. Turning to capital expenditures. We're focused on supporting growth and efficiencies and improving our customer experience.

Speaker #2: Turning to capital expenditures, we're focused on supporting growth and efficiencies, and improving our customer experience. We evaluate all initiatives based on return on investment.

During the year, our balance sheet was further strengthened via a series of financing transactions. We now have no material long term debt maturities until 2030, our adjusted debt to adjusted EBITDA leverage ratio remains below our two and a half times target, which reinforces our financial flexibility.

Tom Edwards: We achieved higher free cash flow despite monetization proceeds of $107 million compared to $283 million last year and ended the year with $1.2 billion of cash on our balance sheet. During the year, our balance sheet was further strengthened via a series of financing transactions. We now have no material long-term debt maturities until 2030. Our adjusted debt to adjusted EBITDAR leverage ratio remains below our 2.5x target, which reinforces our financial flexibility. At year-end, inventories were $4.4 billion, down 1.3% from last year. Heading into spring, we feel good about our composition. We have more newness, less aged goods, and open-to-buy flexibility to respond to market dynamics and trends. Turning to capital expenditures. We're focused on supporting growth, efficiencies, and improving our customer experience.

Speaker #2: For 2025, capital expenditures were $740 million, down from $882 million in 2024. The reduction in year-over-year spend primarily reflected the completion of several longer-term projects, including our China Grove distribution center, which opened last year.

At year end inventories were $4 4 billion down one 3% from last year heading into spring, we feel good about our composition, we are more newness less aged goods and open to buy flexibility to respond to market dynamics and trends.

Speaker #2: Looking ahead, we continue to believe there are compelling investment opportunities to support and accelerate our long-term growth profile. Our capital allocation priorities are clear and consistent.

Turning to capital expenditures, we are focused on supporting growth and efficiencies and improving our customer experience. We evaluate all initiatives based on return on investment for 2025 and capital expenditures were $740 million down from $882 million in 2024.

Speaker #2: First, invest in the business to support the Bold New Chapter strategy. Second, manage our balance sheet leverage and liquidity. Third, return cash to shareholders through dividends and share repurchases.

Thomas J. Edwards: We evaluate all initiatives based on return on investment. For 2025, capital expenditures were $740 million, down from $882 million in 2024. The reduction in year-over-year spend primarily reflected the completion of several longer-term projects, including our China Grove Distribution Center, which opened last year. Looking ahead, we continue to believe there are compelling investment opportunities to support and accelerate our long-term growth profile. Our capital allocation priorities are clear and consistent. First, invest in the business to support the Bold New Chapter strategy. Second, manage our balance sheet leverage and liquidity. Third, return cash to shareholders through dividends and share repurchases. For the year, we returned $448 million to shareholders, including $197 million of cash dividends. Since reinstating our regular quarterly dividend in 2021, our annual payout amount has risen 27%.

Speaker #2: For the year, we returned $448 million to shareholders, including $197 million of cash dividends. Since reinstating our regular quarterly dividend in 2021, our annual payout amount has risen 27%.

The reduction in year over year spend primarily reflected the completion of several longer term projects, including our China Grove distribution Center, which opened last year.

Tom Edwards: We evaluate all initiatives based on return on investment. For 2025, capital expenditures were $740 million, down from $882 million in 2024. The reduction in year-over-year spend primarily reflected the completion of several longer-term projects, including our China Grove Distribution Center, which opened last year. Looking ahead, we continue to believe there are compelling investment opportunities to support and accelerate our long-term growth profile. Our capital allocation priorities are clear and consistent. First, invest in the business to support the Bold New Chapter strategy. Second, manage our balance sheet leverage and liquidity. Third, return cash to shareholders through dividends and share repurchases. For the year, we returned $448 million to shareholders, including $197 million of cash dividends. Since reinstating our regular quarterly dividend in 2021, our annual payout amount has risen 27%.

Looking ahead, we continue to believe there are compelling investment opportunities to support and accelerate our long term growth profile.

Speaker #2: In addition to the quarterly dividend, in 2025, we repurchased $251 million of shares, including $50 million in the fourth quarter. This leaves approximately $1.1 billion remaining on our authorization.

Our capital allocation priorities are clear and consistent first invest in the business to support the bold new chapter strategy.

Speaker #2: As we reflect on 2025, we made significant progress toward achieving our long-term goal of sustainable, profitable growth. Before turning to guidance, I want to share a few observations from my first nine months.

Manage our balance sheet leverage and liquidity third return cash to shareholders through dividends and share repurchases.

For the year, we returned $448 million to shareholders, including $197 million of cash dividends.

Speaker #2: Starting with the team, I have been impressed by our talented colleagues. Their dedication, skill, and expertise, combined with the willingness and urgency to drive the business forward, is delivering results.

Since reinstating our regular quarterly dividend in 2020, one our annual payout amount has risen 27%.

In addition to the quarterly dividend in 2025, we repurchased $251 million of shares including $50 million in the fourth quarter. This leaves approximately $1 1 billion remaining on our authorization.

Speaker #2: Beyond our teams, I believe Macy's, Inc. has significant underappreciated capabilities in areas such as data science, AI, and technology. And our Macy's ecosystem is a fundamental strength, which I'll describe in more detail shortly.

Thomas J. Edwards: In addition to the quarterly dividend, in 2025, we repurchased $251 million of shares, including $50 million in Q4. This leaves approximately $1.1 billion remaining on our authorization. As we reflect on 2025, we made significant progress towards achieving our long-term goal of sustainable, profitable growth. Before turning to guidance, I want to share a few observations from my first 9 months. Starting with the team, I have been impressed by our talented colleagues. Their dedication, skill, and expertise, combined with a willingness and urgency to drive the business forward, is delivering results. Beyond our teams, I believe Macy's, Inc. has significant underappreciated capabilities in areas such as data science, AI, and technology. Our Macy's ecosystem is a fundamental strength, which I'll describe in more detail shortly.

As we reflect on 2025, we made significant progress towards achieving our long term goal of sustainable profitable growth.

Tom Edwards: In addition to the quarterly dividend, in 2025, we repurchased 251 million of shares, including 50 million in Q4. This leaves approximately 1.1 billion remaining on our authorization. As we reflect on 2025, we made significant progress towards achieving our long-term goal of sustainable, profitable growth. Before turning to guidance, I want to share a few observations from my first nine months. Starting with the team, I have been impressed by our talented colleagues. Their dedication, skill, and expertise, combined with a willingness and urgency to drive the business forward, is delivering results. Beyond our teams, I believe Macy's, Inc. has significant underappreciated capabilities in areas such as data science, AI, and technology. Our Macy's ecosystem is a fundamental strength, which I'll describe in more detail shortly.

Speaker #2: With these observations as a backdrop, my focus and approach is clear: support the execution of what is already working, and adjust direction and adapt where needed.

Before turning to guidance I want to share a few observations from my first nine months.

Starting with the team I have been impressed by our talented colleagues their dedication skill and expertise combined with our willingness and urgency to drive the business forward is delivering results.

Speaker #2: And build on our strengths and opportunities to accelerate growth. There are three specific areas that highlight these learnings and approach that are incorporated into our plans for 2026 and beyond.

Beyond our teams I believe Macy's, Inc has significant underappreciated capabilities in areas, such as data science, AI and technology and our Macy's ecosystem is a fundamental strength, which I'll describe in more detail shortly.

Speaker #2: The first area is our Macy's store portfolio. One of my top priorities has been to carefully evaluate the Macy's base, including current performance, future potential, and real estate value considerations.

Speaker #2: We are taking a pragmatic approach in our commitment to running an optimized fleet that can profitably grow. Based on our assessment, our target go-forward fleet remains approximately 350 locations.

With these observations as a backdrop my focus and approach is clear support the execution of what is already working.

Thomas J. Edwards: With these observations as a backdrop, my focus and approach is clear: support the execution of what is already working, adjust direction and adapt where needed, and build on our strengths and opportunities to accelerate growth. There are three specific areas that highlight these learnings and approach that are incorporated into our plans for 2026 and beyond. The first area is our Macy's store portfolio. One of my top priorities has been to carefully evaluate the Macy's base, including current performance, future potential, and real estate value considerations. We are taking a pragmatic approach and are committed to running an optimized fleet that can profitably grow. Based on our assessment, our target go-forward fleet remains approximately 350 locations. These will form a cohesive market-by-market framework that supports our broader Macy's omni-channel business.

Adjust direction and adapt where needed.

And build on our strengths and opportunities to accelerate growth.

Speaker #2: These will form a cohesive market-by-market framework that supports our broader Macy's omnichannel business. We still plan to exit approximately $65 locations, completing the previously announced $150 closures.

There are three specific areas that highlight these learnings and approach that are incorporated into our plans for 2026 and beyond.

Tom Edwards: With these observations as a backdrop, my focus and approach is clear: support the execution of what is already working, adjust direction and adapt where needed, and build on our strengths and opportunities to accelerate growth. There are three specific areas that highlight these learnings and approach that are incorporated into our plans for 2026 and beyond. The first area is our Macy's store portfolio. One of my top priorities has been to carefully evaluate the Macy's base, including current performance, future potential, and real estate value considerations. We are taking a pragmatic approach and are committed to running an optimized fleet that can profitably grow. Based on our assessment, our target go-forward fleet remains approximately 350 locations. These will form a cohesive market-by-market framework that supports our broader Macy's omnichannel business.

The first areas, our macys store portfolio one of my top priorities has been to carefully evaluate the macys base, including current performance future potential and real estate value considerations, where.

Speaker #2: With our strong balance sheet and cash flow generation, we can be flexible on the timing of transactions in order to maximize the value of remaining assets.

Speaker #2: We now expect closures through 2028. The second area is related to organizational excellence and operational efficiencies of our end-to-end operations. Our end-to-end initiatives are working.

We're taking a pragmatic approach and are committed to running an optimized fleet that can profitably grow.

Based on our assessment our target go forward fleet remains approximately 350 locations easel form a cohesive market by market framework that supports our broader Macy's omnichannel business we.

Speaker #2: We have materially improved delivery times and now share specific delivery expectations with our customers. Following our multi-year network modernization efforts, our new state-of-the-art China Grove distribution facility has streamlined and automated how we work, and will provide better customer service and reduce cost to serve.

Still plan to exit approximately 65 locations completing the previously announced 150 closures with our strong balance sheet and cash flow generation, we can be flexible on timing of transactions in order to maximize value of remaining assets. We now expect closures through 2028.

Thomas J. Edwards: We still plan to exit approximately 65 locations, completing the previously announced 150 closures. With our strong balance sheet and cash flow generation, we can be flexible on timing of transactions. In order to maximize value of remaining assets, we now expect closures through 2028. The second area is related to organizational excellence and operational efficiencies of our end-to-end operations. Our end-to-end initiatives are working. We have materially improved delivery times and now share specific delivery expectations with our customers. Following our multi-year network modernization efforts, our new state-of-the-art China Grove distribution facility has streamlined and automated how we work, and will provide better customer service and reduce cost to serve. Building on this as a base, we believe there's significant opportunity to leverage AI throughout the organization, including supply chain, merchandising, marketing, and call centers, as well as in customer-facing and omni-channel areas.

Speaker #2: Building on this as a base, we believe there is significant opportunity to leverage AI throughout the organization, including supply chain, merchandising, marketing, and call centers, as well as in customer-facing and omnichannel areas.

Tom Edwards: We still plan to exit approximately 65 locations, completing the previously announced 150 closures. With our strong balance sheet and cash flow generation, we can be flexible on timing of transactions. In order to maximize value of remaining assets, we now expect closures through 2028. The second area is related to organizational excellence and operational efficiencies of our end-to-end operations. Our end-to-end initiatives are working. We have materially improved delivery times and now share specific delivery expectations with our customers. Following our multi-year network modernization efforts, our new state-of-the-art China Grove distribution facility has streamlined and automated how we work and will provide better customer service and reduce cost to serve. Building on this as a base, we believe there is significant opportunity to leverage AI throughout the organization, including supply chain, merchandising, marketing, and call centers, as well as in customer-facing and omnichannel areas.

The second area is related to organizational excellence and operational efficiencies of our end to end operations.

Speaker #2: Now let's discuss the Macy's ecosystem. I've been impressed with our deep customer knowledge. We connect with nearly 40 million customers annually, giving us visibility to over 70% of transactions.

Our end to end initiatives are working we have materially improved delivery times and now share specific delivery expectations with our customers. Following our multi year network modernization efforts, our new state of the art, China Grove distribution facility has streamlined and automated how we work and we'll provide better customer service and reduce cost.

Speaker #2: This is enabled by our store's digital channels, loyalty, and credit card programs, in addition to Macy's Media Network, marketing, and events. They are all interconnected and provide value to our customers and to Macy's, Inc. Having spent many years across the retail, consumer goods, and hospitality industries, this ecosystem is a unique strength.

To serve.

Building on this as a base. We believe there is significant opportunity to leverage AI throughout the organization, including supply chain merchandising marketing and call centers as well as in customer facing an omnichannel areas.

Speaker #2: Now, before turning to guidance, as a reminder, on February 18, we filed an 8-K updating our non-GAAP metrics and definition of non-GAAP earnings, which now excludes non-cash asset sale gains and benefit plan income.

Now, let's discuss the Macy's ecosystem I've been impressed with our deep customer knowledge, we connect with nearly 40 million customers annually, giving us visibility to over 70% of transactions. This is enabled by our stores and digital channels loyalty and credit card programs. In addition to Macys media network.

Thomas J. Edwards: Now let's discuss the Macy's ecosystem. I've been impressed with our deep customer knowledge. We connect with nearly 40 million customers annually, giving us visibility to over 70% of transactions. This is enabled by our stores, digital channels, loyalty, and credit card programs, in addition to Macy's Media Network, marketing, and events. They are all interconnected and provide value to our customers and to Macy's, Inc. Having spent many years across the retail, consumer goods, and hospitality industries, this ecosystem is a unique strength. Now, before turning to guidance, as a reminder, on 18 February, we filed an 8-K updating our non-GAAP metrics and definition of non-GAAP earnings, which now excludes non-cash asset sale gains and benefit plan income. These measures illustrate sequential improvement and a return to growth and are intended to simplify reporting to better focus on our go-forward business performance.

Speaker #2: These measures illustrate sequential improvement and a return to growth, and are intended to simplify reporting to better focus on our go-forward business performance. Moving to guidance, we enter the year well-positioned.

Tom Edwards: Now let's discuss the Macy's ecosystem. I've been impressed with our deep customer knowledge. We connect with nearly 40 million customers annually, giving us visibility to over 70% of transactions. This is enabled by our stores, digital channels, loyalty, and credit card programs, in addition to Macy's Media Network, marketing, and events. They are all interconnected and provide value to our customers and to Macy's, Inc. Having spent many years across the retail, consumer goods, and hospitality industries, this ecosystem is a unique strength. Now, before turning to guidance, as a reminder, on 18 February, we filed an 8-K updating our non-GAAP metrics and definition of non-GAAP earnings, which now excludes non-cash asset sale gains and benefit plan income. These measures illustrate sequential improvement and a return to growth and are intended to simplify reporting to better focus on our go-forward business performance.

Marketing and events.

All interconnected and provide value to our customers and to Macy's, Inc. Having spent many years across the retail consumer goods and hospitality industries. This ecosystem is a unique strength.

Speaker #2: Our inventories have a relevant mix of categories and brands across a variety of price points. This is supported by compelling marketing campaigns and events that are designed to activate and engage customers.

Now before turning to guidance as a reminder, on February 18th we filed an 8-K updating our non-GAAP metrics and definition of non-GAAP earnings, which now excludes noncash asset sale gains and benefit plan income.

Speaker #2: For our guidance, we are taking a prudent approach, giving ourselves flexibility to respond to changes in the competitive landscape and external environment, as well as macroeconomic and geopolitical unknowns.

These measures illustrate sequential improvement and a return to growth and are intended to simplify reporting to better focus on our go forward business performance.

Speaker #2: As we look at 2026, a few considerations. The tariff environment continues to evolve. Our first quarter outlook largely reflects rates before recent changes, as prior tariffs are incorporated in our existing inventory cost basis.

Moving to guidance, we ended the year well positioned our inventories have a relevant next of categories and brands across a variety of price points. This is supported by compelling marketing campaigns and events that are designed to activate and engage customers.

Thomas J. Edwards: Moving to guidance, we enter the year well-positioned. Our inventories have a relevant mix of categories and brands across a variety of price points. This is supported by compelling marketing campaigns and events that are designed to activate and engage customers. For our guidance, we are taking a prudent approach, giving ourselves flexibility to respond to changes in the competitive landscape and external environment, as well as macroeconomic and geopolitical unknowns. As we look at 2026, a few considerations. The tariff environment continues to evolve. Our Q1 outlook largely reflects rates before recent changes, as prior tariffs are incorporated in our existing inventory cost basis. For the Q2 and rest of year, our outlook assumes similar tariffs remain in place. With that, for the full year, we expect net sales of approximately $21.4 to 21.65 billion. Macy's, Inc.

Speaker #2: For the second quarter and the rest of the year, our outlook assumes similar tariffs remain in place. With that, for the full year, we expect net sales of approximately $21.4 to $21.65 billion, Macy's, Inc. comparable sales being a range of down approximately 0.5% to up 0.5%, other revenue of about $920 million, and gross margin as a percent of net sales to be 38.3% to 38.6%.

For our guidance, we are taking a prudent approach, giving ourselves flexibility to respond to changes in the competitive landscape and external environment as well as macroeconomic and geopolitical unknowns as we look at 2026, a few considerations the tariff environment continues to evolve our first quarter outlook.

Tom Edwards: Moving to guidance, we enter the year well-positioned. Our inventories have a relevant mix of categories and brands across a variety of price points. This is supported by compelling marketing campaigns and events that are designed to activate and engage customers. For our guidance, we are taking a prudent approach, giving ourselves flexibility to respond to changes in the competitive landscape and external environment, as well as macroeconomic and geopolitical unknowns. As we look at 2026, a few considerations. The tariff environment continues to evolve. Our Q1 outlook largely reflects rates before recent changes as prior tariffs are incorporated in our existing inventory cost basis. For the Q2 and rest of year, our outlook assumes similar tariffs remain in place. With that, for the full year, we expect net sales of approximately $21.4 to 21.65 billion. Macy's, Inc.

<unk> reflects rates before recent changes as prior tariffs are incorporated in our existing inventory cost basis.

Speaker #2: We expect a tariff impacted gross margin of roughly 20 to 30 basis points. We begin to lap higher tariffs in the second quarter. We expect gross margin rate to be down in the first quarter and up in the second through fourth quarters.

For the second quarter and rest of year, our outlook assumes similar tariffs remain in place.

With that for the full year, we expect net sales of approximately 21.4 to $21 six 5 billion Macy.

Speaker #2: SG&A to be up 1 to 2% on a dollar basis to last year, below the rate of inflation. Please keep in mind that planned spend reflects investments to support sustainable top-line growth, including enhancements to the omnichannel shopping experience across nameplates and in talent.

Macy's, Inc. Comparable sales to be in a range of down approximately 5% to up <unk>, 5%.

Thomas J. Edwards: Comparable sales to be in a range of down approximately 0.5% to up 0.5%. Other revenue of about $920 million. Gross margin as a percent of net sales to be 38.3% to 38.6%. We expect a tariff impact to gross margin of roughly 20 to 30 basis points. We begin to lap higher tariffs in Q2. We expect gross margin rate to be down in Q1 and up in Q2 through Q4. SG&A to be up 1% to 2% on a dollar basis to last year, below the rate of inflation. Please keep in mind that planned spend reflects investments to support sustainable top-line growth, including enhancements to the omni-channel shopping experience across nameplates, and in talent.

Other revenue of about $920 million.

Gross margin as a percent of net sales to be $38 three to 38, 6%.

Speaker #2: We are not benefiting from as meaningful an SG&A reduction from closed stores on a year-over-year basis, with 14 closures in fiscal '25 compared to 64 in fiscal '24.

We expect the tariff impact to gross margin of roughly 20 to 30 basis points.

Tom Edwards: Comparable sales to be in a range of down approximately 0.5% to up 0.5%. Other revenue of about $920 million. Gross margin as a percent of net sales to be 38.3% to 38.6%. We expect a tariff impact to gross margin of roughly 20 to 30 basis points. We begin to lap higher tariffs in Q2. We expect gross margin rate to be down in Q1 and up in Q2 through Q4. SG&A to be up 1% to 2% on a dollar basis to last year below the rate of inflation. Please keep in mind that planned spend reflects investments to support sustainable top-line growth, including enhancements to the omni-channel shopping experience across nameplates and in talent.

We begin to lap higher tariffs in the second quarter, we expect gross margin rate to be down in the first quarter and up in the second through fourth quarters.

Speaker #2: We are also maintaining our always-on expense savings approach. Based on seasonality of spend, we expect the highest SG&A dollar growth in the first and third quarters.

SG&A to be up 1% to 2% on a dollar basis to last year below the rate of inflation.

Speaker #2: We expect adjusted EBITDA as a percent of total revenue of 7.7 to 7.9 percent versus 7.9 percent in fiscal 2025, and interest expense of roughly $110 million.

Please keep in mind that planned spend reflects investments to support sustainable top line growth, including enhancements to the omnichannel shopping experience across nameplates and in talent.

Speaker #2: And we expect adjusted diluted EPS of $1.90 to $2.10. This does not include potential future share buybacks. It does incorporate a roughly 10 to 20 cent tariff impact and compares to adjusted diluted EPS of $2.15 in the year-ago period.

We are not benefiting from is meaningful and SG&A reduction from closed stores on a year over year basis with 14 closures in fiscal 'twenty five compared to 64 in fiscal 'twenty four.

Thomas J. Edwards: We are not benefiting from as meaningful an SG&A reduction from closed stores on a year-over-year basis, with 14 closures in fiscal 2025 compared to 64 in fiscal 2024. We are also maintaining our always-on expense savings approach. Based on seasonality of spend, we expect the highest SG&A dollar growth in Q1 and Q3. We expect adjusted EBITDA as a percent of total revenue of 7.7% to 7.9% versus 7.9% in fiscal 2025, and interest expense of roughly $110 million. We expect adjusted diluted EPS of $1.90 to $2.10. This does not include potential future share buybacks. It does incorporate a roughly 10- to 20-cent tariff impact and compares to adjusted diluted EPS of $2.15 in the year-ago period.

We are also maintaining our always on expense savings approach.

Based on seasonality of spend we expect the highest SG&A dollar growth in the first and third quarters.

Speaker #2: For the first quarter, we expect net sales of approximately $4.575 to $4.625 billion, Macy's Inc. comparable sales are expected to be up approximately 0.5 to 1.5%, adjusted EBITDA as a percent of total revenue of 4.9 to 5.1% versus 6.3% last year, and adjusted EPS of negative 1 cent to positive 1 cent compared to 11 cents last year.

Tom Edwards: We are not benefiting from as meaningful an SG&A reduction from closed stores on a year-over-year basis, with 14 closures in fiscal 2025 compared to 64 in fiscal 2024. We are also maintaining our always-on expense savings approach. Based on seasonality of spend, we expect the highest SG&A dollar growth in Q1 and Q3. We expect adjusted EBITDA as a percent of total revenue of 7.7% to 7.9% versus 7.9% in fiscal 2025, and interest expense of roughly $110 million. We expect adjusted diluted EPS of $1.90 to $2.10. This does not include potential future share buybacks. It does incorporate a roughly $0.10 to $0.20 tariff impact and compares to adjusted diluted EPS of $2.15 in the year ago period.

We expect adjusted EBITDA as a percent of total revenue of 7.7 to seven 9% versus seven 9% in fiscal 'twenty 'twenty, five and interest expense of roughly $110 million.

And we expect adjusted diluted EPS of $1 90 to $2.10.

This does not include potential future share buybacks. It does incorporate a roughly 10 to 20 tariff impact and compares to adjusted diluted EPS of $2.15 in the year ago period.

Speaker #2: We expect tariffs to negatively impact EPS by roughly $0.05 to $0.10, and gross margin rate by roughly 40 to 60 basis points. In conclusion, we ended 2025 on a strong note.

For the first quarter, we expect net sales of approximately $4 575 to $4 $6 billion to $5 billion Macy's.

Thomas J. Edwards: For Q1, we expect net sales of approximately $4.575 to 4.625 billion. Macy's, Inc. comparable sales are expected to be up approximately 0.5% to 1.5%. Adjusted EBITDA, as a percent of total revenue, of 4.9% to 5.1% versus 6.3% last year. Adjusted EPS of -$0.01 to $0.01 compared to $0.11 last year. We expect tariffs to negatively impact EPS by roughly $0.05 to $0.10 and gross margin rate by roughly 40 to 60 basis points.

Speaker #2: Better-than-expected fourth quarter results across key metrics underscore the strength and promise of our bold new chapter strategy. We have proven initiatives in place, supported by our solid free cash flow, balance sheet, and capital allocation strategy.

<unk> comparable sales are expected to be up approximately <unk> five to one 5% adjusted.

EBITDA as a percent of total revenue of 4.9 to five 1% versus six 3% last year and adjusted EPS.

Tom Edwards: For the first quarter, we expect net sales of approximately $4.575 to 4.625 billion. Macy's, Inc. comparable sales are expected to be up approximately 0.5% to 1.5%. Adjusted EBITDA as a percent of total revenue of 4.9% to 5.1% versus 6.3% last year. Adjusted EPS of -$0.01 to $0.01 compared to $0.11 last year. We expect tariffs to negatively impact EPS by roughly $0.05 to 0.10 and gross margin rate by roughly 40 to 60 basis points. In conclusion, we ended 2025 on a strong note. Better than expected Q4 results across key metrics underscore the strength and promise of our Bold New Chapter strategy.

Speaker #2: As we look to 2026, we are well-positioned to thoughtfully navigate the near term to deliver our long-term goals and provide meaningful value to our customers and shareholders.

Of negative one sent a positive one cents compared to <unk> 11 cents last year.

We expect tariffs to negatively impact EPS by roughly five to 10 cents.

Speaker #2: Now, I will turn the call back to Tony for closing remarks. Thanks, Tom. The Bold New Chapter strategy is centered on creating a more focused, resilient company.

And gross margin rate by roughly 40 to 60 basis points.

In conclusion, we ended 2025 on a strong note better than expected fourth quarter results across key metrics underscore the strength and promise of our bold new chapter strategy, we've proven initiatives in place supported by our solid free cash flow balance sheet and capital allocation strategy.

Speaker #2: It balances the art and science of retail. We combine customer insight, data, and creative merchandising to meet customers where they are. Recent performance reflects accelerating momentum across each pillar of our strategy and reinforces our confidence in the direction.

Thomas J. Edwards: In conclusion, we ended 2025 on a strong note. Better than expected Q4 results across key metrics underscore the strength and promise of our Bold New Chapter strategy. We have proven initiatives in place supported by our solid free cash flow, balance sheet and capital allocation strategy. As we look to 2026, we are well-positioned to thoughtfully navigate the near term, deliver our long-term goals, and provide meaningful value to our customers and shareholders. Now, I will turn the call back to Tony for closing remarks.

As we look to 2026, we are well positioned to thoughtfully navigate the near term deliver our long term goals and provide meaningful value to our customers and shareholders now.

Speaker #2: We have a clear path to growth. Our balance sheet, relationships, and initiatives position us to build on recent financial and operational success and pursue new opportunities.

Tom Edwards: We have proven initiatives in place supported by our solid free cash flow, balance sheet and capital allocation strategy. As we look to 2026, we are well-positioned to thoughtfully navigate the near term, deliver our long-term goals, and provide meaningful value to our customers and shareholders. Now, I will turn the call back to Tony for closing remarks.

Now I will turn the call back to Tony for closing remarks.

Speaker #2: And with that operator, we're now ready for questions.

Thanks, Tom the Boulder chapter strategy is centered on creating a more focused resilient company it balances the art and science of retail.

Speaker #3: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Tony Spring: Thanks, Tom. The Bold New Chapter strategy is centered on creating a more focused, resilient company. It balances the art and science of retail. We combine customer insights, data, and creative merchandising to meet customers where they are. Recent performance reflects accelerating momentum across each pillar of our strategy and reinforces our confidence in the direction. We have a clear path to growth. Our balance sheet, relationships, and initiatives position us to build on recent financial and operational success and pursue new opportunities. With that, operator, we're now ready for questions.

We can mind customer insight data and creative merchandising to meet customers where they are.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Recent performance reflects accelerating momentum across each pillar of our strategy and reinforces our confidence in the direction.

Speaker #3: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We do ask that you please limit yourself to one question and one follow-up question.

Tony Spring: Thanks, Tom. A Bold New Chapter strategy is centered on creating a more focused, resilient company. It balances the art and science of retail. We combine customer insight, data, and creative merchandising to meet customers where they are. Recent performance reflects accelerating momentum across each pillar of our strategy and reinforces our confidence in the direction. We have a clear path to growth. Our balance sheet, relationships, and initiatives position us to build on recent financial and operational success and pursue new opportunities. With that operator, we're now ready for questions.

We have a clear path to growth our balance sheet relationships and initiatives position us to build on recent financial and operational success and pursue new opportunities.

Speaker #3: Again, that's star 1 to register a question at this time. Our first question today is coming from Blake Anderson of Jefferies. Please go ahead.

And with that operator, we're now ready for questions.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to move your question from the queue for <unk>.

Speaker #4: Hi, guys. Good morning and congrats on the nice quarter here. Wanted to ask Tony to start, given the continued macro and consumer ability for Macy's Inc. to be more resilient going forward despite the headwinds to the consumer?

Operator 1: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We do ask that you please limit yourself to one question and one follow-up question. Again, that's star one to register a question at this time. Our first question today is coming from Blake Anderson of Jefferies. Please go ahead.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We do ask that you please limit yourself to one question and one follow-up question. Again, that's star one to register a question at this time. Our first question today is coming from Blake Anderson of Jefferies. Please go ahead.

Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, we do ask that you. Please limit yourself to one question and one follow up question.

Speaker #4: And what gives you confidence you can continue to build on the momentum you made this past year?

Speaker #5: Thanks, Blake, for the question. I feel terrific about how we closed the 2025. Growth across Macy's, Bloomingdale's, and Bluemercury reimagined stores continuing to outperform—seven, eight quarters of growth.

Ken Thats Star one to register a question at this time.

Our first question today is coming from Blake Anderson of Jefferies. Please go ahead.

Speaker #5: Bloomingdale's running on all cylinders. Growth in digital, growth in physical, growth in full price, and growth in off-price. And we end the year with a healthy balance sheet and inventories below the prior year.

Hi, guys good morning, and congrats on the nice quarter here.

Ask Tony to start given the continued macro and consumer volatility just how are you feeling about the ability for Macy's, Inc to be more resilient going forward. Despite the headwinds to the consumer and what gives you confidence you can continue to build on the momentum you made this past year.

Blake Anderson: Hi, guys. Good morning, and congrats on the nice quarter here. Wanted to ask Tony to start, given the continued macro and consumer volatility, just how are you feeling about the ability for Macy's, Inc. to be more resilient going forward despite the headwinds to the consumer? What gives you confidence you can continue to build on the momentum you made this past year?

Speaker #5: There is a lot of uncertainty, and so our guidance reflects this tension between how good we feel about our strategy, how good we feel about our team, and the level of uncertainty relative to the macro and geopolitical environment.

Thanks, Blake for the question I feel terrific about how we closed 2025 growth across Macy's Bloomingdale's and Blue Mercury re imagine stores continuing to outperform seven to eight quarters of growth bloomingdales running on all cylinders growth in digital growth in physical growth in full.

Speaker #5: So I feel good about the things that we control. The team is clear-eyed and focused on delivering for the customer, making sure that we build on the net promoter scores that are at record levels, and the level of traction that we're getting across all three nameplates.

Tony Spring: Thanks, Blake, for the question. I feel terrific about how we closed the 2025. Growth across Macy's, Bloomingdale's, and Bluemercury. Reimagined stores continuing to outperform 7, 8 quarters of growth. Bloomingdale's running on all cylinders, growth in digital, growth in physical, growth in full price, and growth in off price. We end the year with a healthy balance sheet and inventories below the prior year. There is a lot of uncertainty, and so our guidance reflects this tension between how good we feel about our strategy, how good we feel about our team, and the level of uncertainty relative to macro and geopolitical environment. I feel good about the things that we control.

Speaker #4: And Blake, I'd just add here that we have a business model that puts us at an advantage in this situation, where multi-brand, multi-category, multi-channel serve off-price to luxury.

Tony Spring: Thanks, Blake, for the question. I feel terrific about how we closed 2025. Growth across Macy's, Bloomingdale's, and Bluemercury. Reimagine 200 stores continuing to outperform 7, 8 quarters of growth. Bloomingdale's running on all cylinders, growth in digital, growth in physical, growth in full price, and growth in off price. We end the year with a healthy balance sheet and inventories below the prior year. There is a lot of uncertainty, and our guidance reflects this tension between how good we feel about our strategy, how good we feel about our team, and the level of uncertainty relative to macro and geopolitical environment. I feel good about the things that we control.

Pricing growth in off price and we end the year with a healthy balance sheet and inventories below the prior year. There is a lot of uncertainty and so our guidance reflects this tension between how good we feel about our strategy how good we feel about our team and the level of uncertainty relative to macro and geopolitical.

Speaker #4: So we can react and adjust depending on circumstances, to serve the consumer and meet their needs.

Speaker #2: Great. Thank you. And Tom, if you could add on AUR versus units, just curious how you think about that for the guide this year.

Environment so.

I feel good about the things that we control the team is clear eyed and focused on delivering for the customer making sure that we build on the net promoter scores that we are at record levels and the level of traction that we're getting across all three nameplates.

Speaker #5: Sure, happy to. So we've been very pleased with AUR continuing to grow, and we saw that continue in Q4 as well as in Q3.

Tony Spring: The team is clear-eyed and focused on delivering for the customer, making sure that we build on the Net Promoter Scores, that we are at record levels, and the level of traction that we're getting across all three nameplates.

And Blake I'd, just add here that do we have a business model that puts us at an advantage in this situation, where multi brand multi category multi channel serve off price to luxury so we can react and adjust depending on circumstances to serve the consumer and meet their needs.

Speaker #5: And before that, and it's really a reflection of our strategy to improve our assortment, to bring in better brands, to reimagine our stores, to modernize our digital channels.

Thomas J. Edwards: Blake, I just add here that we have a business model that puts us at an advantage in this situation. We're multi-brand, multi-category, multi-channel, serve off price to luxury, so we can react and adjust depending on circumstances to serve the consumer and meet their needs.

Tony Spring: The team is clear-eyed and focused on delivering for the customer, making sure that we build on the Net Promoter Scores that we are at record levels, and the level of traction that we're getting across all three nameplates.

Speaker #5: So we're feeling a good that that trend will continue, and that's included in our expectations going forward. Overall, basket is also increasing. So while units may be down slightly, we're seeing an overall basket in our consumer buying more on a dollar basis.

Right.

Tom Edwards: Blake, I just add here that we have a business model that puts us at an advantage in this situation. We're multi-brand, multi-category, multi-channel, serve off price to luxury, so we can react and adjust depending on circumstances to serve the consumer and meet their needs.

Great. Thank you and Tom if you could add on AUR versus units just curious how you think about that for the guide this year.

Blake Anderson: Great. Thank you. Tom, if you could add on AUR versus units, just curious how you think about that for the guide this year.

Sure happy to so we've been very pleased with AUR continuing to grow and we saw that continue in Q4.

Speaker #5: We see traffic steady, and we're predictable. And on the conversion side, maybe a slightly more choosy consumer. But feel good about going forward from an AUR perspective.

Thomas J. Edwards: Sure, I'm happy to. We've been very pleased with AUR continuing to grow, and we saw that continue in Q4, as well as in Q3, and before that. It's really a reflection of our strategy to improve our assortment, to bring in better brands, to reimagine our stores, to modernize our digital channels. We're feeling good that that trend will continue, and that's included in our expectations going forward. Overall basket is also increasing. While units may be down slightly, we're seeing an overall basket in our consumer buying more on a dollar basis. We see traffic steady and more predictable, and on the conversion side, maybe a slightly more choiceful consumer. Feel good about going forward from an AUR perspective.

As well as in Q3 and before that and it's really a reflection of our strategy to improve our assortments to bring in better brands to re imagine our stores to modernize our digital channels. So we're feeling good that that trend will continue and thats included in our expectations going forward.

Brooke Roach: Great. Thank you. Tom, if you could add on AUR versus units. Just curious how you think about that for the guide this year.

Speaker #2: Great. Thanks so much.

Tom Edwards: Sure. Happy to. We've been very pleased with AUR continuing to grow, and we saw that continue in Q4, as well as in Q3, and before that. It's really a reflection of our strategy to improve our assortment, to bring in better brands, to reimagine our stores, to modernize our digital channels. We're feeling good that trend will continue, and that's included in our expectations going forward. Overall basket is also increasing. While units may be down slightly, we're seeing our overall basket, our consumer buying more on a dollar basis. We see traffic steady and more predictable, and on the conversion side, maybe a slightly more choiceful consumer. Feel good about going forward from an AUR perspective.

Speaker #4: Thanks, Blake.

Speaker #3: Thank you. Our next question is coming from Matthew Boss of JPMorgan. Please go ahead.

Speaker #5: Great. Thanks. So Tony, on performance across nameplates, could you elaborate on the inflection at Bloomingdale's the last two quarters? How much of this you believe is execution relative to luxury consolidation?

Overall basket is also increasing so our units may be down slightly we're seeing an overall basket and our consumer.

Buying more on a dollar basis, we see traffic steady and more predictable and on the conversion side, maybe a slightly more choice for consumer.

Speaker #5: And then what is the range of outcomes for Macy's go forward banner comps next year within the flat consolidated guide? And then Tom, on the cadence, maybe could you just touch on top-line guidance for the first quarter relative to the 100 basis points or so of moderation that's baked into the full year?

But feel good about going forward from an AUR perspective.

Okay.

Great. Thanks, so much.

Thanks Blake.

Our next question is coming from Matthew Boss of Jpmorgan. Please go ahead.

Speaker #5: How much of this is near-term trends that you're seeing in the business today versus macro uncertainty that maybe you've prudently baked into the full year guide?

Blake Anderson: Great. Thanks so much.

Tony Spring: Thanks, Blake.

Operator 1: Thank you. Our next question is coming from Matthew Boss of J.P. Morgan. Please go ahead.

Operator: Thank you. Our next question is coming from Matthew Boss of J.P. Morgan. Please go ahead.

Great. Thanks, So Tony on performance across nameplates could you elaborate on the inflection at bloomingdale's in the last two quarters. How much of this you believe is execution relative to luxury luxury consolidation just and then what is the range of outcomes for Macys go forward banner comps next year within the flat consolidated.

Matthew Boss: Great, thanks. Tony, on performance across nameplates, could you elaborate on the inflection at Bloomingdale's the last two quarters? How much of this you believe is execution relative to luxury consolidation? What is the range of outcomes for Macy's go-forward banner comps next year within the flat consolidated guide? Tom, on the cadence, maybe could you just touch on top-line guidance for Q1 relative to the 100 basis points or so of moderation that's baked into the full-year guide? How much of this is near-term trends that you're seeing in the business today versus macro uncertainty that maybe you've prudently baked into the full-year guide?

Speaker #4: Thanks, Matt. Look, we feel terrific about the Bloomingdale's business. There's every indication that the growth continues. Because it's so broad-based—it's in the apparel business, it's in the home business, it's in the accessories business, it's in our flagship stores, it's in our smaller stores, it's off-price, and Bloomy's.

Brooke Roach: Great. Thanks so much.

Tony Spring: Thanks, Blake.

Operator: Thank you. Our next question is coming from Matthew Boss of J.P. Morgan. Please go ahead.

Matthew Boss: Great, thanks. So Tony, on performance across nameplates, could you elaborate on the inflection at Bloomingdale's the last two quarters? How much of this you believe is execution relative to luxury consolidation? What is the range of outcomes for Macy's go-forward banner comps next year within the flat consolidated guide? Tom, on the cadence, maybe could you just touch on top-line guidance for Q1 relative to the 100 basis points or so of moderation that's baked into the full year. How much of this is near-term trends that you're seeing in the business today versus macro uncertainty that maybe you've prudently baked into the full-year guide?

Alidade Guide and then Tom on the cadence maybe could you just touch on top line guidance for the first quarter relative to the 100 basis points or so of moderation that's baked into the full year. How much of this is near term trends that youre seeing in the business today versus macro uncertainty that maybe you have prudently baked into the full year guide.

Speaker #4: The vendor community has rallied around Bloomingdale's like never before. They are delivering for their customers at an exceptional level right now. So we are continuing to fund, from both a capital and from an SG&A standpoint, the growth potential of Bloomingdale's.

Speaker #4: It's important to the overall architecture of Macy's Inc.'s go forward business. So I feel strong about the opportunity for Bloomingdale's. The disruption in the marketplace only gives more fuel to the fire.

Yeah.

Thanks, Matt look we feel terrific about the bloomingdale's business. There's every indication that the growth continues because it's so broad based it's in the apparel business. It's in the home business is in the accessories business. It's in our flagship stores in our smaller stores as off price and Bloom is.

Tony Spring: Thanks, Matt. Look, we feel terrific about the Bloomingdale's business. There's every indication that the growth continues because it's so broad-based. It's in the apparel business, it's in the home business, it's in the accessories business, it's in our flagship stores, it's in our smaller stores, it's off price in Bloomie's. The vendor community has rallied around Bloomingdale's like never before. They are delivering for their customers at an exceptional level right now. We are continuing to fund from both a capital and from a SG&A standpoint, the growth potential of Bloomingdale's. It's important to the overall architecture of Macy's, Inc.'s go-forward business. I feel strong about the opportunity for Bloomingdale's. The disruption in the marketplace only gives more fuel to the fire. Relative to Macy's, I'm pleased that we're up to 200 stores now in the Reimagine program.

Speaker #4: Relative to Macy's, I'm pleased that we're to 200 stores now in the reimagined program. That's 60% of our go-forward Macy's fleet and 75% of the Macy's store go-forward sales.

Tony Spring: Thanks, Matt. Look, we feel terrific about the Bloomingdale's business. There's every indication that the growth continues because it's so broad-based. It's in the apparel business, it's in the home business, it's in the accessories business, it's in our flagship stores, it's in our smaller stores, it's off-price and Bloomie's. The vendor community has rallied around Bloomingdale's like never before. They are delivering for their customers at an exceptional level right now. We are continuing to fund from both a capital and from a SG&A standpoint, the growth potential of Bloomingdale's. It's important to the overall architecture of Macy's, Inc.'s go-forward business. I feel strong about the opportunity for Bloomingdale's. The disruption in the marketplace only gives more fuel to the fire. Relative to Macy's, I'm pleased that we're up to 200 stores now in the Reimagine 200.

The vendor community has rallied around bloomingdale's like never before they're delivering for their customers at an exceptional level right. Now. So we are continuing to fund from both a capital and from a SG&A standpoint, the growth potential of Bloomingdale's, it's important to the overall architecture of Macy's Inc. Go forward business.

Speaker #4: You've moved from test to iterate to now we're at the scale point. And I think the reimagined program has the opportunity to continue to deliver comp growth for the Macy's brand.

Speaker #4: As we mentioned on the call, our digital business at Macy's is healthy—a third of our business and growing, with a nice balance between 1P and 3P.

I feel strong about the opportunity for bloomingdales.

Speaker #4: So the external environment is where we have concern. The performance of our business relative to the fourth quarter, the first quarter so far, and the broad-based growth across all three nameplates gives us confidence in what we control.

The disruption in the marketplace only gives more fuel to the fire relative.

Relative to Macy's I'm pleased that we're to 200 stores now in the <unk> program that 60% of our go forward Macy's fleet and 75% of the Macy's store go forward sales you've moved from test to iterate to now we're at the scale point and I think the re imagine program has the opportunity to continue to deliver.

Speaker #4: And Matt, I'll continue with the quarter Q1 trends and into the rest of the year. So we were encouraged by Q4 performance. Our consumer skews more to the higher income.

Tony Spring: That's 60% of our go-forward Macy's fleet and 75% of the Macy's store go-forward sales. You've moved from test to iterate to now we're at the scale point, and I think the Reimagine program has the opportunity to continue to deliver comp growth for the Macy's brand. As we mentioned on the call, our digital business at Macy's is healthy, a third of our business and growing, with a nice balance between 1P and 3P. The external environment is where we have concern. The performance of our business relative to Q4, Q1 so far, and the broad-based growth across all three nameplates gives us confidence in what we control.

Speaker #4: And we're seeing them be more resilient. So we're seeing these trends continue into Q1, and we're pleased with that. However, we're cognizant of that broader external environment and want to take a prudent and measured approach to guidance.

<unk> growth for the Macy's brand as we mentioned on the call our digital business at Macys as healthy a third of our business and growing with a nice balance between 1% and three P. So the external environment is where we have concern the performance of our business relative to the fourth quarter, the first quarter, so far and the <unk>.

Tony Spring: That's 60% of our go-forward Macy's fleet and 75% of the Macy's store go-forward sales. You've moved from test to iterate to now we're at the scale point. I think the Reimagine program has the opportunity to continue to deliver comp growth for the Macy's brand. As we mentioned on the call, our digital business at Macy's is healthy, a third of our business and growing, with a nice balance between 1P and 3P. The external environment is where we have concern. The performance of our business relative to the Q4, the Q1 so far, and the broad-based growth across all three nameplates gives us confidence in what we control.

Speaker #4: We also have 60% of the quarter from a volume basis left to go. When we look at the rest of the year, we're looking at our comps on a multi-year stack.

Broad based growth across all three nameplates gives us confidence of what we control.

Speaker #4: And on that basis, they're more evenly paced through the year. So we're really thoughtfully considering that as we guide it for the full year on a comp basis.

And Matt I'll continue with a quarter Q1 trends and into the rest of the year. So we are encouraged by Q4 performance our consumer skews more to the higher income and we're seeing them be worn resilient. So we're seeing this trend continue into Q1 and pleased with that.

Thomas J. Edwards: Matt, I'll continue with the quarter, Q1 trends and into the rest of the year. We are encouraged by Q4 performance. Our consumer skews more to the higher income, and we're seeing them be more resilient. We're seeing these trends continue into Q1 and pleased with that. However, we're cognizant of that broader external environment and want to take a prudent and measured approach to guidance. We also have 60% of the quarter from a volume basis left to go. When we look at the rest of the year, we're looking at our comps on a multi-year stack, and on that basis, they're more evenly paced through the year. We're really thoughtfully considering that as we guide it for the full year on a comp basis.

Speaker #4: But we're very confident of our strategies and continue to build on the bold new chapter momentum as we move through the year.

Speaker #2: Great color. Best of luck.

Speaker #4: Thanks, Matt.

However, we are cognizant of that broader external environment and want to take a prudent and measured approach to guidance and we also have 60% of the quarter from a volume basis left to go when we look at the rest of the year. We're looking at our comps on a quote on a multiyear stack and on that basis. They are more evenly paced.

Tom Edwards: Matt, I'll continue with the quarter, Q1 trends and into the rest of the year. We are encouraged by Q4 performance. Our consumer skews more to the higher income, and we're seeing them be more resilient. We're seeing these trends continue into Q1 and pleased with that. However, we're cognizant of that broader external environment and wanna take a prudent and measured approach to guidance. We also have 60% of the quarter from a volume basis left to go. When we look at the rest of the year, we're looking at our comps on a multi-year stack, and on that basis, they're more evenly paced through the year. We're really thoughtfully considering that as we guide it for the full year on a comp basis.

Speaker #3: Thank you. Our next question is coming from Brook Roach of Boltman Sachs. Please go ahead.

Speaker #6: Good morning and thank you for taking our question. Tony, with some competitors leaning into value in a bigger way this year, what actions are you taking to appeal to a more price-sensitive consumer amidst the inflationary macro backdrop in '26?

Through the year, so we really thoughtfully considering that as we guided for the full year on a comp basis, but we're very confident of our strategies and continue to build on the bold new chapter momentum as we move through the year.

Speaker #6: What are your plans for promotion and marketing on this? Thanks.

Speaker #4: Thanks, Brooke, for the question. We have a value as a part of our overall architecture as being a department store, promotional department store at Macy's.

Thomas J. Edwards: We're very confident of our strategies and continue to build on the Bold New Chapter momentum as we move through the year.

Great color best of luck.

Matt.

Speaker #4: Remember, we have a backstage; we have regular promotional events. We have a private brand portfolio that offers meaningful value. In the different categories that we play.

Thank you. Our next question is coming from Brooke Roach of Goldman Sachs. Please go ahead.

Paul Lejuez: Great color. Best of luck.

Matthew Boss: Great color. Best of luck.

Tony Spring: Thanks, Matt.

Operator 1: Thank you. Our next question is coming from Brooke Roach of Goldman Sachs. Please go ahead.

Operator: Thank you. Our next question is coming from Brooke Roach of Goldman Sachs. Please go ahead.

Good morning, and thank you for taking our question Tony with some competitors leaning into value in a bigger way. This year. What actions are you taking to appeal to a more price sensitive consumer unmatched are inflationary macro backdrop in 'twenty six what are your plans for promotion and marketing on Nash. Thanks.

Tom Edwards: We're very confident of our strategies and continue to build on the Bold New Chapter momentum as we move through the year.

Speaker #4: So to me, it's always a balance. We want to offer promotion to make sure that we are continuing to capture the customer that is looking for deals or for value.

Brooke Roach: Good morning, and thank you for taking our question. Tony, with some competitors leaning into value in a bigger way this year, what actions are you taking to appeal to a more price-sensitive consumer amidst the inflationary macro backdrop in 2026? What are your plans for promotion and marketing on this? Thanks.

Matthew Boss: Great color. Best of luck.

Tony Spring: Thanks, Matt.

Operator: Thank you. Our next question is coming from Brooke Roach of Goldman Sachs. Please go ahead.

Speaker #4: And at the same time, we don't undershoot the customer, who's looking for the better brands. And the range of price points that we can offer across our entire portfolio in both 1P and 3P.

Thanks Brook for the question, we have a value as a part of our overall architecture is being a.

Tony Spring: Thanks, Brooke, for the question. We have value as a part of our overall architecture as being a department store, promotional department store at Macy's. Remember, we have Backstage. We have regular promotional events. We have a private brand portfolio that offers meaningful value in the different categories that we play. So to me, it's always a balance. We wanna offer promotion to make sure that we are continuing to capture the customer that is looking for deals or for value. At the same time, we don't undershoot the customer who's looking for the better brands and the range of price points that we can offer across our entire portfolio in both 1P and 3P and from off price to full price and certainly from Macy's to Bloomingdale's.

Speaker #4: And from off-price to full price, and certainly from Macy's to Bloomingdale's. So I like how we're positioned. We're really being requiring of ourselves and the market to make sure that we get the balance right—call it a barbell approach—but from good, better, best.

Department store promotional department store at Macy's you remember, we have backstage we have a regular promotional events we.

Our private brand portfolio that offers a meaningful value in the different categories that we play so to me it's always a balance.

Tony Spring: Thanks, Brooke, for the question. We have value as a part of our overall architecture as being a department store, promotional department store at Macy's. Remember, we have Backstage, we have regular promotional events, we have a private brand portfolio that offers meaningful value in the different categories that we play. To me, it's always a balance. We wanna offer promotion to make sure that we are continuing to capture the customer that is looking for deals or for value. At the same time, we don't undershoot the customer who's looking for the better brands and the range of price points that we can offer across our entire portfolio in both 1P and 3P and from off price to full price, and certainly from Macy's to Bloomingdale's.

Speaker #4: We're looking at it from every brand type and every price point to make sure that we're executing and doing everything we can to capture all different levels of consumers.

Want to offer promotion to make sure that we are continuing to capture the customer that is looking for deals or for value and at the same time, we don't undershoot, the customer who is looking for the better brands and the range of price points that we can offer across our entire portfolio.

Speaker #3: Great. And then just a follow-up for Tom. Can you detail the puts and takes to gross margin this year beyond tariffs? What are the core operational drivers of the improvement that you're forecasting?

In both <unk> and from off price full price and certainly from Macy's to bloomingdales. So I like how we're positioned where we're really being requiring of ourselves in the market to make sure that we get the balance right call. It of our barbell approach, but from a good better best we're looking at it from every brand.

Speaker #3: And how should we be thinking about the cadencing and magnitude of that improvement as you move into the back half?

Speaker #4: Sure. Thanks for the question, Brooke. The core underlying performance—and if I look at the full-year guide, we're guiding down flat to 20 basis points, and tariffs are 20 to 30 basis points.

Tony Spring: I like how we're positioned. We're really being requiring of ourselves and the market to make sure that we get the balance right, call it a barbell approach. From good, better, best, we're looking at it from every brand type and every price point to make sure that we're executing and doing everything we can to capture all different levels of consumers.

Speaker #4: So the underlying trend is positive. We expect gross margin to be strong and improved and expand as we move through the year. We would see that as well in Q1, except there's a slightly higher tariff impact of 40 to 60 basis points in the quarter.

And every price point to make sure that we're executing and doing everything we can to capture all different levels of consumers.

Tony Spring: I like how we're positioned. We're really requiring of ourselves and the market to make sure that we get the balance right, call it a barbell approach, but from good, better, best, we're looking at it from every brand type and every price point to make sure that we're executing and doing everything we can to capture all different levels of consumers.

Great and then just a follow up for Tom can you detail the puts and takes to gross margin. This year beyond Paris, what are the core operational drivers of the improvement that you're forecasting and how should we be thinking about the cadent sing and magnitude of that improvement as you move into the back half.

Brooke Roach: Great. Just a follow-up for Tom. Can you detail the puts and takes to gross margin this year beyond tariffs? What are the core operational drivers of the improvement that you're forecasting, and how should we be thinking about the cadencing and magnitude of that improvement as you move into the back half?

Speaker #4: The items that are driving our gross margin performance, which is exactly what we saw in Q3 and Q4, are really the fundamental bold new chapter initiatives of improving and creating a more relevant assortment, bringing in better brands, having greater better experiences across our omnichannel platform, both in stores and in digital.

Sure. Thanks for the question broke the core underlying performance and if I look at the full year guide, we're guiding that down.

Oliver Chen: Great. Just a follow-up for Tom. Can you detail the puts and takes to gross margin this year beyond tariffs? What are the core operational drivers of the improvement that you're forecasting, and how should we be thinking about the cadencing and magnitude of that improvement as you move into the back half?

Thomas J. Edwards: Sure. Thanks for the question, Brooke. The core underlying performance, and if I look at the full-year guide, we're guiding flat to down 20 basis points, and tariffs are 20 to 30 basis points. The underlying trend is positive. We expect gross margin to be strong, improve, and expand as we move through the year. We would see that as well in Q1, except there's a slightly higher tariff impact of 40 to 60 basis points in the quarter.

That 10 to 20 basis points and tariffs are 20% to 30 basis points. So the underlying trend is positive we expect gross margin to be strong and improve and expand as we move through the year.

Speaker #4: And that is supporting AUR and gross margin as we move forward. So we do expect that trend to continue through the year. We haven't guided to specifics on a quarterly basis, but we would expect that fundamental trend to be positive, reflecting our strategy.

Tom Edwards: Sure. Thanks for the question, Brooke. The core underlying performance, and if I look at the full year guide, we're guiding down flat to 20 basis points, and tariffs are 20 to 30 basis points. The underlying trend is positive. We expect gross margins to be strong and improve and expand as we move through the year. We would see that as well in Q1, except there's a slightly higher tariff impact of 40 to 60 basis points in the quarter.

We would see that as well in Q1, except there's a slightly higher tariff impact of 40 to 60 basis points in the quarter. The items that are driving our gross margin.

Arjun performance, which is exactly what we saw in Q3 and Q4 are really the fundamental both new chapter.

Speaker #3: Great. Thanks so much. I'll pass it on.

Thomas J. Edwards: The items that are driving our gross margin performance, which is exactly what we saw in Q3 and Q4, are really the fundamental Bold New Chapter initiatives of improving and creating a more relevant assortment, bringing in better brands, having better experiences across our omni-channel platform, both in stores and in digital, and that is supporting AUR and gross margin as we move forward. We do expect that trend to continue through the year. We haven't guided to specifics on a quarterly basis, but we would expect that fundamental trend to be positive, reflecting our strategy.

Speaker #2: Thanks, Brooke.

Speaker #3: Thank you. Our next question is coming from Dana Telsey of Telsey Advisory Group. Please go ahead.

Initiatives of improving and creating a more relevant assortment, bringing in better brands.

Speaker #5: Hi, good morning, everyone. And nice to see the progress. Bloomingdale's 59th Street, that fourth floor looks terrific with the brand expansion. On the Macy's additional 75 stores being added to the reimagined bucket, how are you thinking about the progression there versus the original stores that you added to the bucket?

Having greater or better experiences across our omnichannel platform, both in stores and in digital.

Tom Edwards: The items that are driving our gross margin performance, which is exactly what we saw in Q3 and Q4, are really the fundamental A Bold New Chapter initiatives of improving and creating a more relevant assortment, bringing in better brands, having greater, better experiences across our omni-channel platform, both in stores and in digital, and that is supporting AUR and gross margin as we move forward. We do expect that trend to continue through the year. We haven't guided to specifics on a quarterly basis, but we would expect that fundamental trend to be positive, reflecting our strategy.

And that is supporting.

<unk> and gross margin as we move forward. So we do expect that trend to continue through the year, we haven't guided to specifics on a quarterly basis, but we would expect that fundamental trend.

Speaker #5: Do you expect the same type of results? Is there a different timing, different things you'd add, up or down? And then, just on the number of store closures this year, how many will there be in 2026?

Positive, reflecting our strategy.

Great. Thanks, so much I'll pass it on.

Thanks Brooks.

Thank you. Our next question is coming from Dana Telsey of Telsey Advisory Group. Please go ahead.

Speaker #5: And are you thinking of any number of store openings, even for the smaller Bloomie's? Thank you.

Brooke Roach: Great. Thanks so much. I'll pass it on.

Tony Spring: Thanks, Brooke.

Operator 1: Thank you. Our next question is coming from Dana Telsey of Telsey Advisory Group. Please go ahead.

Operator: Thank you. Our next question is coming from Dana Telsey of Telsey Advisory Group. Please go ahead.

Hi, good morning, everyone and nice to see the progress Bloomingdale's, 59th Street that fourth floor. It looks terrific with the brand expansion on.

Speaker #4: Thanks, Dana, for the question. The reimagined program—we're very proud of it and pleased with the contribution. We've had seven of eight quarters of growth in the reimagined.

Dana Telsey: Yeah, good morning, everyone, and nice to see the progress. Bloomingdale's 59th Street, that fourth floor looks terrific with the brand expansion. On the Macy's additional 75 stores being added to the Reimagine bucket, how are you thinking about the progression there versus the original stores that you added to the bucket? Do you expect the same type of results? Is there different timing, different things you'd add up or down? Just on the number of store closures this year, how many will there be in 2026? Are you thinking of any number of store openings even through the smaller Bloomie's? Thank you.

Oliver Chen: Great. Thanks so much. I'll pass it on.

On the Macys additional 75 stores being added to the we imagine bucket, how you're thinking about the progression that versus the original stores that you added to the bucket do you expect the same type of results is there different timing different things you'd add up or down and then just on the number of store closures. This year.

Tony Spring: Thanks, Brooke.

Speaker #4: And growth from the first 50 on forward. So as we added the next 75, we began that in February. Those tactics roll out over the course of the first few weeks of the spring season.

Operator: Thank you. Our next question is coming from Dana Telsey of Telsey Advisory Group. Please go ahead.

Dana Telsey: Yeah, good morning, everyone, and nice to see the progress. Bloomingdale's 59th Street, that fourth floor looks terrific with the brand expansion. On the Macy's additional 75 stores being added to the Reimagine bucket, how are you thinking about the progression there versus the original stores that you added to the bucket? Do you expect the same type of results? Is there different timing, different things you'd add up or down? Then just on the number of store closures this year, how many will there be in 2026? Are you thinking of any number of store openings even through the smaller Bloomie's? Thank you.

Speaker #4: That's additional colleagues in the store. That's additional brands within the assortment. That's better execution in the store, better storytelling, localized events. As a part of that program, we certainly have iterated before we got to scale.

How many will there be in 2026 and are you thinking of any number of store openings, even for the smaller or me. Thank you.

Speaker #4: So I would tell you that, as opposed to directing top-down, centrally, every aspect of the program, we are empowering locally—more so in the next tranche of stores.

Thanks, Dana for the question the re imagine program, we're very proud of and pleased with the contribution we've had seven of eight quarters of growth in the re imagine and growth from the first ft. On forward. So as we added. The next 75, we began that in February those tactics are rollout over the course of.

Tony Spring: Thanks, Dana, for the question. The Reimagine program, we're very proud of and pleased with the contribution. We've had 7 of 8 quarters of growth in the Reimagine and growth from the first 50 on forward. As we added the next 75, we began that in February. Those tactics roll out over the course of the first few weeks of the spring season. That's additional colleagues in the store. That's additional brands within the assortment. That's better execution in the store, better storytelling, localized events. As a part of that program, we certainly have iterated before we got to scale.

Speaker #4: And even going back to the original stores, allowing our local leaders to determine where those colleagues can be best utilized. We're also trying to make sure that we're customizing local events so they resonate more meaningfully with the consumer base.

The first few weeks of the spring season, that's additional colleagues in the store that's additional brands within the assortment that is better execution in the store better storytelling localized events.

Speaker #4: And we're obviously amping up our work in visual and storytelling because we can see what a difference it makes in selling regular price and in selling the new brands that we're adding to our assortment.

And as a part of that program, we certainly have iterate. It before we got to scale. So I would tell you that as opposed to directing top down centrally every aspect of the program. We are empowering locally more so in the next tranche of stores and even going back to the original stores, allowing our local leaders to determine where those colleagues.

Speaker #4: I'll let Tom cover the store closures.

Speaker #7: Thanks for the question on the store closures, Dana. So, as we look at the non-go forward stores, our goal is to have an optimized fleet on a market-by-market basis that supports our broader Macy's omnichannel business.

Tony Spring: I would tell you that as opposed to directing top-down centrally every aspect of the program, we are empowering locally more so in the next tranche of stores and even going back to the original stores, allowing our local leaders to determine where those colleagues can be best utilized. We're also trying to make sure that we're customizing local events so they resonate more meaningfully with the consumer base. We're obviously amping up our work in visual and storytelling because we can see what a difference it makes in selling regular price and in selling the new brands that we're adding to our assortment. I'll let Tom cover the store closures.

Speaker #7: And we've rigorously evaluated the future and current performance of our stores and the real estate value. As a result, we're extending the closure timing of the remaining approximately 65 stores through 2028.

Can be best utilized we're also trying to make sure that we're customizing local events. So they resume resonate more meaningfully with the consumer base and we're obviously amping up our work and visual and storytelling, because we can see what a difference it makes in selling regular price and in selling the new brands that we're adding to our assortment.

Speaker #7: While we don't provide in-advance closure guidance, I would look to that three-year timeframe for the remaining approximate store closures. And that'll allow us to wait for the most favorable real estate market in order to get the most value for our shareholders and for our business.

Let Tom cover those store closures. Thanks.

Thanks for the question on the store closures Dana as always when you look at the non go forward stores. We our goal is to have an optimized fleet on a market by market basis that supports our broader Macy's omnichannel business and we've rigorously evaluated the future and current performance of our stores and the real estate value.

Thomas J. Edwards: Thanks for the question on the store closures, Dana. As we look at the non-go-forward stores, our goal is to have an optimized fleet on a market-by-market basis that supports our broader Macy's omni-channel business, and we've rigorously evaluated the future and current performance of our stores and the real estate value. As a result, we're extending the closure timing of the remaining approximately 65 stores through 2028. While we don't provide an advanced closure guidance, I would look to that three-year timeframe for the remaining approximate store closures. That'll allow us to wait for the most favorable real estate market in order to get the most value for our shareholders and for our business.

Speaker #7: And the way we can do that is, we can be patient because there are strong balance sheet and cash flow, and still invest in the business to drive our overall growth.

Speaker #7: As a result of this, we're expanding and increasing our cash expectations from this initiative, from a previous $500 to $650 million to a total of $650 to $700 million.

Tom Edwards: Thanks for the question on the store closures, Dana. As we look at the non-go-forward stores, our goal is to have an optimized fleet on a market-by-market basis that supports our broader Macy's omni-channel business, and we've rigorously evaluated the future and current performance of our stores and the real estate value. As a result, we're extending the closure timing of the remaining approximately 65 stores through 2028. While we don't provide an advance closure guidance, I would look to that three-year timeframe for the remaining approximate store closures. That'll allow us to wait for the most favorable real estate market in order to get the most value for our shareholders and for our business.

As a result, our.

Extending the closure timing of the remaining approximately 65 stores through 2028, while we don't provide an advance closure guidance.

Speaker #7: And that leaves us, after we've monetized approximately $400 million, $250 to $300 million to go, which is worth about $1 a share. We look forward to running an optimized fleet that will support our broader business going forward.

Look to that three year timeframe for the remaining approx approximate store closures.

And that will allow us to wait for the most favorable real estate market in order to get the most value for our shareholders and for our business and the way we can do that as we can be patient because of our strong balance sheet and cash flow and still invest in the business to drive our overall growth.

Speaker #5: Thank you.

Speaker #2: Thanks, Dana.

Thomas J. Edwards: The way we can do that is we can be patient because of our strong balance sheet and cash flow and still invest in the business to drive our overall growth. As a result of this, we're expanding and increasing our cash expectations from this initiative from a previous $500 to 650 million to a total of $650 to 700 million. That leaves us, after we've monetized approximately $400 million, $250 to 300 to go, which is worth about $1 a share. We look forward to running an optimized fleet that will support our broader business going forward.

Speaker #3: Thank you. The next question is coming from Oliver Chen of TD Cowen. Please go ahead.

As a result of this we're expanding and increasing our cash expectations from this initiative from a previous $500 million to $650 million to a total of $650 to $700 million and that leaves us. After we monetize approximately $400 million $2 50 to 300 to go which is worth about.

Speaker #8: Hi, Tony and Tom. Which categories drove upside this quarter? And also, as you think about private, private brands, where are you there? More simply, what are your thoughts on what it'll take to positive comp above 2% to 3% more consistently?

Tom Edwards: The way we can do that is we can be patient because of our strong balance sheet and cash flow and still invest in the business to drive our overall growth. As a result of this, we're expanding and increasing our cash expectations from this initiative from a previous $500 to 650 million to a total of $650 to 700 million. That leaves us, after we've monetized approximately $400 million, $250 to 300 to go, which is worth about $1 a share. We look forward to running an optimized fleet that will support our broader business going forward.

$1 a share we look forward to.

Speaker #8: And then finally, in the realm of AI, what's live today relative to the use cases and the KPIs you're thinking of? I know AI is applying to supply chain as well as customer experience, as well as marketplace.

Running an optimized fleet that will support our broader business going forward.

Thank you.

Thanks Dana.

Thank you. The next question is coming from Oliver Chen of TD Cowen. Please go ahead.

Paul Lejuez: Thank you.

Dana Telsey: Thank you.

Tony Spring: Thanks, Dana.

Speaker #8: But are there thoughts in terms of how you're evaluating proof points there? The media networks had impressive momentum. It could probably be 500 million to a billion, though.

Operator 2: Thank you. The next question is coming from Oliver Chen of TD Cowen. Please go ahead.

Operator: Thank you. The next question is coming from Oliver Chen of TD Cowen. Please go ahead.

Yes.

Hi, Tony and Tom, which which categories drove upside this quarter and also as you think about private private brands and where are you. There are more simply what are your thoughts on whether that will take the positive comp above 2% to 3% more consistently.

Oliver Chen: Hi, Tony and Tom. Which categories drove upside this quarter? Also as you think about private brands, where are you there? More simply, what are your thoughts on what it'll take to positive comp above 2% to 3% more consistently? Finally, in the realm of AI, what's live today, you know, relative to the use cases and the KPIs you're thinking of? I know AI is applying to supply chain as well as customer experience as well as marketplace, but are there thoughts in terms of how you're evaluating proof points there? The media networks had impressive momentum. It could probably be $500 million to 1 billion though, so would love thoughts there as well. Thank you.

Speaker #8: So would love thoughts there as well. Thank you.

Dana Telsey: Thank you.

Tony Spring: Thanks, Dana.

Speaker #4: Thanks, Oliver. So, in terms of categories, let me start there. Good to see the growth in Women's Contemporary Apparel at both Macy's and Bloomingdale's.

Operator: Thank you. The next question is coming from Oliver Chen of TD Cowen. Please go ahead.

Oliver Chen: Hi, Tony and Tom. Which categories drove upside this quarter? Also, as you think about private brands, where are you there? More simply, what are your thoughts on what it'll take to positive comp above 2 to 3 percent more consistently? Then finally, in the realm of AI, what's live today, you know, relative to the use cases and the KPIs you're thinking of? I know AI is applying to supply chain as well as customer experience as well as marketplace, but are there thoughts in terms of how you're evaluating proof points there? Macy's Media Network had impressive momentum. It could probably be $500 million to $1 billion, though. Would love thoughts there as well. Thank you.

And then finally in the realm of AI.

Which.

Speaker #4: Continuing to see the strength in the dress business and the tailored clothing business, which I think underscores the dress-up and return to office, and the mix of both a little bit dressier and casual tops and bottoms.

Whats live today, you know relative to the use cases and the Kpis, you're thinking of I know AI is applying to supply chain as well as customer experience as well as marketplace, but are there thoughts in terms of how you're evaluating our proof points. There. The media networks had impressive momentum it could probably be 500 million to a one.

Speaker #4: Seeing growth in the accessory category, particularly fine jewelry, lab-grown diamonds, and watches. So we feel good that there's a broad-based interest in fashion across a multitude of categories: fragrances—obviously a strength for both brands.

Though so would love thoughts there as well thank you.

Thanks Oliver.

So on terms of categories, let me start there.

Tony Spring: Thanks, Oliver. In terms of categories, let me start there. Good to see the growth in women's contemporary apparel at both Macy's and Bloomingdale's. Continuing to see the strength in the dress business and the tailored clothing business, which I think underscores the dress up and return to office and the mix of both a little bit dressier and casual tops and bottoms. Seeing growth in the accessory category, particularly fine jewelry, lab-grown diamonds, watches. You know, we feel good that there's a broad-based interest in fashion across a multitude of categories. Fragrance is obviously a strength for both brands.

Good to see the growth in women's contemporary apparel at both Macy's and bloomingdale's continuing to see the strength in the dress business and the tailored clothing business, which I think underscores the dress up and return to office and the mix of both are a little bit dressier and casual tops and bottoms.

Speaker #4: Private brands are still an area of development. So we're still at the 12% or so of our total business. And we have reworked all of these brands and I would say that the team is keenly focused on improving the quality and improving the value offering despite the impact of tariffs.

Tony Spring: Thanks, Oliver. In terms of categories, let me start there. Good to see the growth in women's contemporary apparel at both Macy's and Bloomingdale's. Continuing to see the strength in the dress business and the tailored clothing business, which I think underscores the dress up and return to office and the mix of both a little bit dressier and casual tops and bottoms. Seeing growth in the accessory category, particularly fine jewelry, lab-grown diamonds, watches. You know, we feel good that there's a broad-based interest in fashion across a multitude of the categories. Fragrance is obviously a strength for both brands.

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Seeing growth in the accessory category, particularly fine jewelry lab grown diamonds watches. So we feel good that there's a broad based interest in fashion across a multitude of categories fragrances, obviously, a strength for both for both brands private brands is still an area of development. So.

Speaker #4: I'll let Tom cover the future 2% to 3%. We're obviously not guiding that in 2026. But I think we intend to be a growth company.

Speaker #4: We are reworking the framework of this portfolio because we believe we can be a growth company. And the fact that we had growth in Macy's, Inc., growth at Macy's, growth at Bloomingdale's, growth at Bloom Mercury, says that we're on the right track.

We're still at the 12% or so of our total business and we have a reworked all of these brands and I would say that the team is keenly focused on improving the quality and improving the value offering despite the impact of tariffs.

Tony Spring: Private brands is still an area of development, so we're still at the 12% or so of our total business, and we have reworked all of these brands. I would say that the team is keenly focused on improving the quality and improving the value offering despite the impact of tariffs. I'll let Tom, you know, cover the future 2% to 3%. We're obviously not guiding that in 2026, but I think we intend to be a growth company. We are reworking the framework of this portfolio because we believe we can be a growth company. The fact that we had growth in Macy's, Inc., growth at Macy's, growth at Bloomingdale's, growth at Bluemercury says that we're on the right track.

Speaker #4: I would just close with: AI for us is an opportunity to combine the improvements in technology and data science with humanity, and deliver a relationship-oriented business that is focused on the consumer.

Tony Spring: Private brands is still a area of development, so we're still at the 12% or so of our total business, and we have reworked all of these brands. I would say that the team is keenly focused on improving the quality and improving the value offering despite the impact of tariffs. I'll let Tom, you know, cover the, you know, future 2% to 3%. We're obviously not guiding that in 2026, but I think we intend to be a growth company. We are reworking the framework of this portfolio because we believe we can be a growth company. The fact that we had growth in Macy's, Inc., growth at Macy's, growth at Bloomingdale's, growth at Bluemercury says that we're on the right track.

I'll, let Tom cover the future, 2% to 3%, we're obviously not guiding that in 2026, but I think we intend to be a growth company. We are reworking. The framework of this portfolio because we believe we can be a growth company and the fact that we had growth in Macy's, Inc growth at macys growths or bloomingdale's growth at Blue Mercury.

Speaker #4: Our initiatives are focused on growing the business, on providing a simpler, experience for our customers and our colleagues, and taking cost and driving efficiency throughout the operation.

Speaker #4: So it's not any one initiative. We are not buying shiny objects. We are solving problems and helping the overall business grow and improve the architecture of how we run the business.

Says that we're on on the right track I would just close with AI for us as an opportunity to combine the improvements in technology and data science with humanity and deliver a relationship oriented business that is focused on the consumer our initiatives are focused on.

Speaker #4: Tom, what would you add?

Speaker #7: On the positive comps, Oliver, I think there are a number of things that are already growing and we can continue to expand on. First is bringing in better brands and having a more relevant assortment.

Tony Spring: I would just close with AI for us is an opportunity to combine the improvements in technology and data science with humanity and deliver a relationship-oriented business that is focused on the consumer. Our initiatives are focused on growing the business, on providing a simpler experience for our customers and our colleagues, and taking cost and driving efficiency throughout the operation. It's not any one initiative. We are not buying shiny objects. We are solving problems and helping the overall business grow and improve the architecture of how we run the business. Tom, what would you add?

Speaker #7: That is working. And I think we have a long runway there to continue to expand. The other is to look at our overall own licensed marketplace and we've been in our new 8K sharing our OLM sales and focus more on OLM comp because we can and are managing the business across all different areas.

Rowing the business on providing a simpler experience for our customers and our colleagues and taking cost and driving efficiency throughout the operation. So it's not any one initiative, we are not buying shiny objects, we are solving problems and helping the overall business grow and improve the architecture of how we run the <unk>.

Speaker #7: That's how the consumer shops us. They don't know exactly where it may be coming from, or who owns the inventory. But we can create the best experience and provide a more relevant assortment across all of our different means of delivering to the customer.

Business, Tom what would you add on the positive comps Oliver I think there are a number of things that are already growing and we can continue to expand on first is bringing in better brands and having a more relevant assortment.

Thomas J. Edwards: On the positive comps, Oliver, I think there are a number of things that are already growing and we can continue to expand on. First, is bringing in better brands and having a more relevant assortment. That is working, and I think we have a long runway there to continue to expand. The other is to look at our overall owned licensed marketplace, and we've been in our new 8-K, sharing our OLM sales and focus more on OLM comp because we can and are managing the business across all different areas. That's how the consumer shops us.

That is working and I think we have a long runway there to continue to expand.

Speaker #7: The last thing I talk about, which I mentioned in the script, is this Macy's ecosystem. I think there's huge value here. And I talk and see the 40 million customers we know of that are in our loyalty programs.

The other is to look at our overall owned licensed marketplace.

Tom Edwards: On the positive comps, Oliver, I think there are a number of things that are already growing and we can continue to expand on. First, is bringing in better brands and having a more relevant assortment. That is working, and I think we have a long runway there to continue to expand. The other is to look at our overall own licensed marketplace, and we've been, in our new 8-K, sharing our OLM sales and focus more on OLM comp because we can, and are managing the business across all different areas. That's how the consumer shops us.

We've been in our new 8-K, sharing our <unk> sales and focus more on O&M comp because we can.

Speaker #7: We know not just what they're buying on a given day, but what their history is and what their preferences are. And that's where I look at the credit card, the Macy's Media Network, and our knowledge and our capabilities in AI and data science that are all coming together, I believe, very nicely with strength to allow us to build and scale up in this area.

We are managing the business across all different areas.

How the consumer shops us they don't know exactly where it may be coming from or who owns the inventory, but we can create the best experience and provide more relevant assortment across all of our different means of delivering to the customer. The last thing I would talk about which I mentioned in the script is Macy's ecosystem I think there's a huge value.

Thomas J. Edwards: They don't know exactly where it may be coming from or who owns the inventory, but we can create the best experience and provide more relevant assortment across all of our different means of delivering to the customer. The last thing I talk about, which I mentioned in the script, is this Macy's ecosystem. I think there's huge value here, and I talk and see the 40 million customers we know of that are in our loyalty programs. We know not just what they're buying on a given day, but what their history is and what their preferences are. That's where I look at the credit card, the Macy's Media Network, and our knowledge and our capabilities in AI and data science that are all coming together, I believe, very nicely with strength to allow us to build and scale up in this area.

Speaker #8: A follow-up. Digital has been impressive. It's a big percentage of mix. What should we know about profitability, rate versus dollars, and any initiatives we should focus on?

Tom Edwards: They don't know exactly where it may be coming from or who owns the inventory, but we can create the best experience and provide more relevant assortment across all of our different means of delivering to the customer. The last thing I talk about, which I mentioned in the script, is this Macy's ecosystem. I think there's huge value here. I talk and see the 40 million customers we know of that are in our loyalty programs. We know not just what they're buying on a given day, but what their history is and what their preferences are.

Here and I talk to them and see the 40 million customers. We know of that are in our loyalty programs.

Speaker #8: Thanks a lot, gentlemen.

Speaker #4: Thank you, Oliver. Digital is a very important part of our business. It's approximately a third of the business. And it is benefiting from the overall initiatives that we're doing in store as we build up better brands.

We know not just what they are buying on a given day, but what their history is and what their preferences are and Thats, where I look at the credit card the Macys media network, and our knowledge and our capabilities in AI and data science that are all coming together I believe very nicely with strength to allow us to build and scale up in this area.

Speaker #4: We're also doing some things in digital specifically to modernize the look and feel, and make digital and our various sites a place for fashion authority that builds on the bold, new chapter.

Uh huh.

A follow up digital has been impressive it's a big percentage of mix.

Tom Edwards: That's where I look at the credit card, the Macy's Media Network, and our knowledge and our capabilities in AI and data science that are all coming together, I believe, very nicely with strength to allow us to build and scale up in this area.

Speaker #4: As we look forward, we're going to continue to grow it along with the rest of the business. It is profitable. And we're happy to sell via stores or digital.

What should we know about profitability rate versus dollars and any initiatives, we should focus on thanks, a lot gentlemen.

Oliver Chen: A follow-up. Digital has been impressive. It's a big percentage of mix. What should we know about profitability rate versus dollars and any initiatives we should focus on? Thanks a lot, gentlemen.

Speaker #4: And I just would end by saying that the stores are foundation for the business. That's what gives us a market-by-market presence that supports digital and, again, pulls everything together into one system.

Thank you Oliver digital is a very important part of our business. It's approximately a third of the business and it is benefiting from the overall initiatives that we're doing in store as we build up better brands.

Thomas J. Edwards: Thank you, Oliver. Digital is a very important part of our business. It's approximately a third of the business, and it is benefiting from the overall initiatives that we're doing in store as we build up better brands. We're also doing some things in digital specifically to modernize the look and feel and make digital and our various sites a place for fashion authority that builds on the Bold New Chapter. As we look forward, we're gonna continue to grow it along with the rest of the business. It is profitable, and we're happy to sell via stores or digital. I just would end by saying that the stores are a foundation for the business. That's what gives us a market-by-market presence that supports digital and again, pulls everything together into one system.

Oliver Chen: A follow-up. Digital's been impressive. It's a big percentage of mix. What should we know about profitability rate versus dollars and any initiatives we should focus on? Thanks a lot, gentlemen.

It is also we're also doing some things in digital specifically to modernize the look and feel and make digital and our various sites of place for fashion authority that builds on the bold new chapter.

Speaker #4: Thanks, Oliver.

Speaker #1: Thank you. Our next question is coming from Paul Lejway of City. Please go ahead.

Tom Edwards: Thank you, Oliver. Digital is a very important part of our business. It's approximately a third of the business, and it is benefiting from the overall initiatives that we're doing in store as we build up better brands. We're also doing some things in digital specifically to modernize the look and feel and make digital and our various sites a place for fashion authority that builds on the Bold New Chapter. As we look forward, we're gonna continue to grow it along with the rest of the business. It is profitable, and we're happy to sell via stores or digital. I just would end by saying that the stores are a foundation for the business. That's what gives us a market-by-market presence that supports digital and again, pulls everything together into one system.

Speaker #5: Hey, thanks, guys. Curious what it costs from a CapEx and SG&A investment to bring a store into the Reimagined program, and also what kind of sales and EBIT dollar lift you expect in year one and year two?

As we look forward, we're going to continue to grow it along with the rest of the business is profitable and we're happy to sell via stores or digital and address would end by saying that the stores are a foundation for the business. That's what gives us a market by market presence that supports digital and again pulls everything together.

Speaker #5: And then, apologies if I missed it—can you talk about CapEx plans for '26? Just how that breaks down? Thanks.

Into one system.

Yeah.

That's regards.

Speaker #4: Let me take the first part of that, Paul. Obviously, we're pleased with the fact that we had seven of eight quarters of growth in the reimagined program, the fact that we're adding 75 additional stores, and the fact that we're continuing to comp positive quarter-to-date.

Thanks Oliver.

Thank you. Our next question is coming from Paul Lajoie of Citi. Please go ahead.

Oliver Chen: Best regards.

Tony Spring: Thanks, Oliver.

Operator 1: Thank you. Our next question is coming from Paul Lejuez of Citi. Please go ahead.

Operator: Thank you. Our next question is coming from Paul Lejuez of Citi. Please go ahead.

Hey, Thanks, guys curious what it costs from a capex.

Paul Lejuez: Hey, thanks, guys. I'm curious what it costs from a CapEx and SG&A investment to bring a store into the reimagined program and also what kind of sales and EBIT dollar lift do you expect in year one and year two? Apologies if I missed it, but can you talk about CapEx plans for FY 2026? Just how that breaks down. Thanks.

SG&A investment.

Speaker #4: We are now at 60% of our Macy's go-forward fleet in the reimagined program and 75% of the store sales. It is accretive to what we're doing.

Same store into the re imagined program and also what kind of sales and EBIT dollar lift.

Oliver Chen: Best regards.

Tony Spring: Thanks, Oliver.

Operator: Thank you. Our next question is coming from Paul Lejuez of Citi. Please go ahead.

<unk> expense in year, one year, two and then argued if I missed it.

Speaker #4: Our job, Tom and I, is to make sure that we are getting a return on the investments we're making. The stores continue to be capitalized.

Paul Lejuez: Hey, thanks, guys. I'm curious what it costs from a CapEx and SG&A investment to bring a store into the reimagined program, and also what kind of sales and EBIT dollar lift do you expect in year one and year two? Apologies if I missed it, but can you talk about CapEx plans for FY26? Just how that breaks down? Thanks.

Can you talk about Capex plan.

When he says how that breaks down.

Speaker #4: With minor little to no in the first tranche of stores, in terms of CapEx and in terms of OpEx, it's designed per location based on the volume level.

Let me take the first part of that Paul Obviously, we're pleased with the fact that we had seven of eight quarters of growth in the <unk> program. The fact that we're adding 75 additional stores. The fact that we're continuing to comp positive.

Tony Spring: Let me take the first part of that, Paul. Obviously, we're pleased with the fact that we had 7 of 8 quarters of growth in the Reimagine 200. The fact that we're adding 75 additional stores, the fact that we're continuing to comp positive, quarter to date. We are now at 60% of our Macy's go-forward fleet in the Reimagine 200 and 75% of the store sales. It is accretive to what we're doing. You know, our job, Tom and I, is to make sure that we are getting a return on the investments we're making. These stores continue to be capital light with minor, little to no in the first tranche of stores, in terms of CapEx.

Speaker #4: And what we believe to be the incremental sales opportunity. So we've now got it down to more of a science to go with the art and make sure that, again, along with the Net Promoter Score continuing to improve in these locations, we're delivering a better experience that's resulting in a better business.

Quarter to date.

We are now at 60% of our Macys go forward fleet and the re imagine program and 75% of the store sales. It is accretive to what we're doing our job Tom and I is to make sure that we are getting a return on the investments we're making the stores continue to be capital light with minor.

Tony Spring: Let me take the first part of that, Paul. Obviously, we're pleased with the fact that we had 7 of 8 quarters of growth in the reimagined program, the fact that we're adding 75 additional stores, the fact that we're continuing to comp positive, quarter to date. We are now at 60% of our Macy's go-forward fleet in the reimagined program and 75% of the store sales. It is accretive to what we're doing. You know, our job, Tom and I, is to make sure that we are getting a return on the investments we're making. These stores continue to be capital light with minor, little to no in the first tranche of stores, in terms of CapEx.

Speaker #7: And Paul, I'll build on that—on the reimagined stores. As they came into the company, I wanted to understand better those exact returns and how much we're investing.

Speaker #7: And there was an analysis detailed analysis done of how things were working out. And what we saw was the investments, of course, are driving growth, which you saw, and as Tony mentioned, seven of the last eight quarters reimagined stores are growing.

A little to no and the first tranche of stores.

In terms of Capex and in terms of Opex. It's designed per location based on the volume level and what we believe to be the incremental sales opportunity. So we've now got it down to more of a science to go with the art and make sure that again with along with the net promoter score continuing to improve in these locations, we're delivering a better experience.

Tony Spring: In terms of OpEx, it's designed per location based on the volume level and what we believe to be the incremental sales opportunity. We've now got it down to more of a science to go with the art and make sure that, again, along with the Net Promoter Score continuing to improve in these locations, we're delivering a better experience that's resulting in a better business.

Speaker #7: What we're also seeing is a good return on investment, and it's meeting our expectations over the years and as we progress. And in addition, as we iterate, we'll be even more effective in allocating resources and improve our returns.

Resulting in a better business.

And Paul I'll build on that on the Reimagined stores as they came into the company wanted to understand better those exact returns and how much we're investing and there was an analysis detailed analysis done of how things were working out and what we saw was the investments of course are driving growth, which you saw and as Tony mentioned seven of the last.

Speaker #7: On a CapEx basis, our CapEx was lower this year as we completed some major projects, most notably the China Grove new distribution facility. As we look to next year, our guidance is approximately $800 million.

Thomas J. Edwards: Paul, I'll build on that on the reimagined stores. As I came into the company, wanted to understand better those exact returns, and how much we're investing. There was an analysis, detailed analysis done of how things were working out. What we saw was the investments, of course, are driving growth, which you saw, and as Tony mentioned, 7 of the last 8 quarters of reimagined stores are growing. What we're also seeing is a good return on investment, and it's meeting our expectations, over the years and as we progress. In addition, as we iterate, we'll be even more effective in allocating resources and to improve our returns. On a CapEx basis, our CapEx was lower this year as we completed some major projects, most notably the China Grove, new distribution facility.

Speaker #7: And the main part of that increase will be in Bloomingdale's, where we're increasing our CapEx allocation because we think there's a significant growth opportunity there both organically and as we look at opening potentially some stores, as Tony earlier noted.

Tom Edwards: Paul, I'll build on that on the reimagined stores. As they came into the company, wanted to understand better those exact returns, and how much we're investing. There was an analysis, detailed analysis done of how things were working out. What we saw was the investments, of course, are driving growth, which you saw, and as Tony mentioned, 7 of the last 8 quarters, reimagined stores are growing. What we're also seeing is a good return on investment, and it's meeting our expectations over the years and as we progress. In addition, as we iterate, we'll be even more effective in allocating resources and to improve our returns. On a CapEx basis, our CapEx was lower this year as we completed some major projects, most notably the China Grove, new distribution facility.

Quarters re imagine stores are growing.

We're also seeing is a good return on investment and it's meeting our expectations.

Over the years and as we progress and in addition, as we iterate, we will be even more effective in allocating resources and improve our returns.

Speaker #7: The other part of our investments are in the Macy's store, our technology, and supply chain.

On a capex basis, our Capex was lower this year as we completed some major projects, most notably the China Grove New.

Speaker #5: Thanks, Tom. Just one other panel item. You gave some guidance on the other line. But can you talk about the split between credit card and media revenues and maybe anything you could share about the underlying health of the credit card portfolio?

Our new distribution facility.

As we look to next year, our guidance is approximately $800 million and the main part of that increase will be in bloomingdale's, we're increasing our capex allocation because we think there is a significant growth opportunity there both organically and as you look at potentially.

Thomas J. Edwards: As we look to next year, our guidance is approximately $800 million, and the main part of that increase will be in Bloomingdale's. We're increasing our CapEx allocation because we think there's a significant growth opportunity there, both organically and as we look at potentially some stores, as Tony earlier noted. The other part of our investments are in the Macy's store, our technology, and supply chain.

Speaker #5: Thanks.

Speaker #4: Sure, I'd be happy to. So, our guide for Other Revenue is approximately $920 million. It's up 7% versus the prior year, and both the credit card and Macy's Media Network are very healthy.

Essentially some stores as Tony earlier noted.

Tom Edwards: As we look to next year, our guidance is approximately $800 million, and the main part of that increase will be in Bloomingdale's. We're increasing our CapEx allocation because we think there's a significant growth opportunity there, both organically and as we look at potentially some stores, as Tony earlier noted. The other part of our investments are in the Macy's store, our technology, and supply chain.

Part of the our investments are in Macy's store our technology.

Speaker #4: When we look at the credit card, we're up 24% in 2025. And that's due to a big improvement in the net credit quality of our customers.

And supply.

Supply chain.

Thanks, Tom and then just one other item you gave some guidance on the other line, but can you talk about the split between credit card and media revenues and maybe anything you could share the underlying health of the credit card portfolio.

Speaker #4: As we look forward, we expect to grow along with the business, and our portfolio remains healthy. We're getting higher applications, and we're working very carefully across digital and in stores to expand usage.

Paul Lejuez: Thanks, Tom. Just one other P&L item. You gave some guidance on the other line, but can you talk about the split between credit card and media revenues and maybe anything you could share about the underlying health of the credit card portfolio? Thanks.

Speaker #4: Macy's media network, we expect to grow relatively stronger. And that is supported by our whole business and all of our partner brands and others, in addition to an Amazon ad initiative that we announced earlier.

Sure I'd be happy too so our guide for other revenue is approximately $920 million is up 7% versus prior year.

Paul Lejuez: Thanks, Tom. Just one other P&L item. You gave some guidance on the other line, but can you talk about the split between credit card and media revenues? Maybe anything you could share about the underlying health of the credit card portfolio. Thanks.

Thomas J. Edwards: Sure. I'd be happy to. Our guide for other revenue is approximately $920 million. It's up 7%, versus prior year. Both the credit card and Macy's Media Network are very healthy. When we look at the credit card, we're up 24% in 2025. That's due to a big improvement in the net credit quality of our customers. As we look forward, we expect it to grow along with the business, and our portfolio remains healthy. We're getting higher applications and working very carefully across digital and in stores to expand usage. Macy's Media Network, we expect to grow relatively stronger.

And both the credit card and Macy's Media network are very healthy when we look at the credit card, we were up 24% in 2025.

Speaker #4: And I'd also just like to add with a note that we call it other revenue. But it's really an integral part of the business.

Tom Edwards: I'd be happy to. Our guide for other revenue is approximately $920 million. It's up 7%, versus prior year. Both the credit card and Macy's Media Network are very healthy. When we look at the credit card, we're up 24% in 2025, and that's due to a big improvement in the net credit quality of our customers. As we look forward, we expect it to grow along with the business, and our portfolio remains healthy. We're getting higher applications and working very carefully across digital and in stores to expand usage.

That's due to a big improvement in the net credit quality of our customers.

As we look forward, we expect it.

Speaker #4: I want to say that the credit card and the Macy's media network exist because of the broader Macy's business and customers. And brand strength.

To grow along with the business and our portfolio remains healthy, we're getting higher applications and working very carefully across digital and in stores to expand usage of Macy's media network, we expect to grow relatively stronger.

Speaker #4: And we look forward to talking about it more in the future.

Speaker #5: Thank you. Good luck.

Speaker #4: Thanks, Paul.

Speaker #1: Thank you. Our next question is coming from Simeon Siegel of Guggenheim. Please go ahead.

And.

That is supported by our whole business and all of our partner brands and others. In addition to an Amazon AD.

Thomas J. Edwards: That is supported by our whole business and all of our partner brands and others in addition to an Amazon ad initiative that we announced earlier. I'd also just like to add with a note that we call it other revenue, but it's really an integral part of the business. I wanna say that the credit card and the Macy's Media Network exists because of the broader Macy's business, customers, and brand strength. We look forward to talking about it more in the future.

Speaker #8: Thanks. Morning, everyone. Nice job. Did you say traffic was up? And how much was AUR up in Q4? And then, Tom, just really helpful to get the go-forward breakdown and framing.

Initiative that we announced earlier and.

Tom Edwards: Macy's Media Network, we expect to grow relatively stronger, and that is supported by our whole business and all of our partner brands and others, in addition to an Amazon ad initiative that we announced earlier. I'd also just like to add with a note that we call it other revenue, but it's really an integral part of the business. I wanna say that the credit card and the Macy's Media Network exists because of the broader Macy's business, customers, and brand strength. We look forward to talking about it more in the future.

And I'd also just like to add with a note that we call. It other revenue, but it's really an integral part of the business.

Speaker #8: So, thanks for that. Can you help us think about maybe following up on the credit card revenues? How do we think about how credit card revenues are associated with go-forward versus non-go-forward?

Say that the credit card in the Macy's media network exists because of the BARDA, our Macy's business and customers and brand strength and we look forward to talking about it more in the future.

Speaker #8: And then maybe similar how should we think about the gross margin SG&A profiles for the go-forward versus non-go-forward businesses? I'm assuming that the latter is going to be a healthier margin.

Thank you and good luck.

Speaker #8: So that would be helpful. Thank you.

Thanks, Paul.

Speaker #4: Sure. Thanks, Simeon. In Q4, we continued to see, as we've seen through the year, AUR being positive versus prior year, driven by our full new chapter initiatives.

Thank you. Our next question is coming from Simeon Siegel of Guggenheim. Please go ahead.

Paul Lejuez: Thank you. Good luck.

Tony Spring: Thanks, Paul.

Operator 2: Thank you. Our next question is coming from Simeon Siegel of Guggenheim. Please go ahead.

Operator: Thank you. Our next question is coming from Simeon Siegel of Guggenheim. Please go ahead.

Thanks, Good morning, everyone nice job.

When you say traffic was up and how much was AUR up in Q4, and then Tom just really helpful to get the go forward breakdown in framing. So thanks for that can you help us think about maybe following up on the credit card revenues, how do we think about how credit card revenues are associated with go forward versus non go forward and then maybe similar how do we should we think about the gross margin SG&A profiles for the go forward versus non Gulf.

Speaker #4: In the quarter, we did have some weather events and traffic was a little softer. But overall, as you can see by our results, we were pleased that we were growing and continue to grow revenue and comp sales.

Simeon Siegel: Thanks. Morning, everyone. Nice job. Did you say traffic was up and how much was AUR up in Q4? Then Tom, just really helpful to get the go-forward breakdown and framing, so thanks for that. Can you help us think about maybe following up on the credit card revenues? How do we think about how credit card revenues are associated with go-forward versus non-go-forward? Then maybe similar, should we think about the gross margin SG&A profiles for the go-forward versus non-go-forward businesses? I'm assuming that the latter is going to be a healthier margin, so that would be helpful. Thank you.

Paul Lejuez: Thank you. Good luck.

Tony Spring: Thanks, Paul.

Operator: Thank you. Our next question is coming from Simeon Siegel of Guggenheim. Please go ahead.

Speaker #4: From a credit card basis, a credit card exists across the whole business. And we're very careful as we're looking at go-forward versus non-go-forward to make sure we maintain a market presence on a store basis as well as a digital basis.

Simeon Siegel: Thanks. Morning, everyone. Nice job. Did you say traffic was up and how much was AUR up in Q4? Tom, just really helpful to get the go-forward breakdown and framing. Thanks for that. Can you help us think about maybe following up on the credit card revenues? How do we think about how credit card revenues are associated with go-forward versus non-go-forward? Maybe similar, how should we think about the gross margin SG&A profiles for the go-forward versus non-go-forward businesses? I'm assuming that the latter is going to be a healthier margin, so that would be helpful. Thank you.

Forward businesses I'm, assuming that the latter is going to be healthier margin. So that would be helpful. Thank you.

Sure. Thanks, Simeon in Q4, we continued to see as we've seen through the year AUR being positive versus prior year, driven by both new chapter initiatives.

Speaker #4: So, I wouldn't expect a material change as a result of our go-forward initiatives. And similarly, on a GM basis, our non-go-forward stores are profitable.

Thomas J. Edwards: Sure. Thanks, Simeon. In Q4, we continued to see, as we've seen through the year, AUR being positive versus prior year, driven by our Bold New Chapter initiatives. In the quarter, we did have some weather events and traffic was a little softer. Overall, as you can see by our results, we were pleased that we were growing and continue to grow revenue, and comp sales. From a credit card basis, a credit card exists across the whole business, and we're very careful as we're looking at go-forward versus non-go-forward to make sure we maintain a market presence on a store basis as well as a digital basis. I wouldn't expect a material change as a result of our go-forward initiatives.

In the quarter, we did have some weather events and traffic was a little softer, but overall you can see by our results. We were pleased that we're growing and continue to grow revenue.

Tom Edwards: Sure. Thanks, Simeon. In Q4, we continued to see, as we've seen through the year, AUR being positive versus prior year, driven by our A Bold New Chapter initiatives. In the quarter, we did have some weather events and traffic was a little softer. Overall, as you can see by our results, we were pleased that we were growing and continue to grow revenue, or, and comp sales. From a credit card basis, a credit card exists across the whole business, and we're very careful as we're looking at go-forward versus non-go-forward to make sure we maintain a market presence on a store basis as well as a digital basis. So, I wouldn't expect a material change as a result of our go-forward initiatives.

Speaker #4: We have called them underproductive, but we're really looking at them from a, 'Can we grow them profitably over the long term?' And I wouldn't look at a major difference in gross margin between the two.

And comp sales.

From a credit card basis.

Credit card exists across the whole business and we've been very careful as we're looking at go forward versus non go forward to make sure. We maintained a market presence on a store basis as well as the digital basis. So.

Speaker #8: I would just add that, yes, I mean, I would just add that the traffic outside of the weather event was essentially flat in stores and up online in both of all three of our brands.

So.

I wouldn't expect a material change as a result of our go forward.

Speaker #8: And that our AUR continues to improve and increase again across all three brands, mainly based on the mix of products more so than just the impact of tariffs.

And initiatives and similarly on a GM basis.

Our non go forward stores are profitable we.

Speaker #4: That's great. That's really helpful. Thanks, guys. And then just any help on thinking about go-forward store expectations by Banner?

Thomas J. Edwards: Similarly, on a GM basis, our non-go-forward stores are profitable. We have called them underproductive, but we're really looking at them from a, can we grow them profitably over the long term, and I wouldn't look at a major difference in gross margin between the two.

We have to call them under productive, but we're really looking to stem from can we grow them profitably over the long term.

Speaker #7: Go-forward store expectations by Banner?

And I wouldn't look at it a major difference in gross margin between the two.

Speaker #4: Yeah.

Speaker #7: When you're talking go-forward, mainly talking about the Macy's banner. And we plan to close an additional 65 stores over the next three years. In the 8-K that we provided that updated our disclosure metrics, we're really pleased to focus on our OLM go-forward sales, and I would say this shows a significant improvement over the last three years.

Tom Edwards: Similarly, on a GM basis, our non-go-forward stores are profitable. We have to call them underproductive, but we're really looking at them from a can we grow them profitably over the long term, and I wouldn't look at a major difference in gross margin between the two.

Yes.

I would just add that volt.

Yes, I mean, I would just add the traffic outside of the weather event was essentially flat in stores and up online in both of our all three of our brands and that our AUR continues to improve and increase again across all three brands, mainly based on the mix of our products more so than just the impact of tariffs.

Tony Spring: I would just add the

Simeon Siegel: That's really helpful.

Tony Spring: Yes, I mean, I would just add the traffic outside of the weather event was essentially flat in stores and up online in both of all three of our brands, and that our AUR continues to improve and increase, again across all three brands, mainly based on the mix of products more so than just the impact of tariffs.

Simeon Siegel: That's really helpful.

Tony Spring: Yes, Simeon, I would just add the traffic outside of the weather event was essentially flat in stores and up online in both of all three of our brands, and that our AUR continues to improve and increase, again, across all three brands, mainly based on the mix of products more so than just the impact of tariffs.

Speaker #7: In '23, down almost 6%. In '24, down almost 1%. And this year, up 1.7%. So I'd focus on return to growth for those businesses.

That's great. That's really helpful. Thanks, and then just any help how to think about go forward store expectations by banner.

Simeon Siegel: That's great. That's really helpful. Thanks, guys. Is there any help how to think about go-forward store expectations by banner?

Go forward store expectations by banner.

Yes.

Are you talking go forward, mainly talking about the Macy's manner, and we plan to close an additional 65 stores over the next three years.

Thomas J. Edwards: Go-forward store expectations by banner?

Speaker #4: Perfect. Thanks a lot, guys. Best of luck for the year.

Simeon Siegel: Yeah.

Speaker #8: Simeon.

Thomas J. Edwards: When you're talking go-forward, I'm mainly talking about the Macy's banner. We plan to close an additional 65 stores over the next 3 years. In the 8-K that we provided that updated our disclosure metrics, we're really pleased to focus on our OLM go forward sales. I would say this shows a significant improvement over the last 3 years. In '23, down almost 6%. In '24, down almost 1%. This year, up 1.7%. I'd focus on a return to growth for those businesses.

Simeon Siegel: That's great. That's really helpful. Thanks, guys. Just any help how to think about go-forward store expectations by banner?

Speaker #1: Thank you. Our next question is coming from Michael Benetti of Evercore ISI. Please go ahead.

In the 8-K that we provided the updated our disclosure metrics, we're really pleased to focus on our OLED <unk> go forward sales and I would say this shows a significant improvement over the last three years and 23 down almost 6% in 2004 down almost 1% in this.

Speaker #6: Hey, guys. Thanks for all the detail here. Could you just walk us through some of the flow-through metrics in the first quarter EBIT guidance?

Tom Edwards: Go forward store expectations by banner?

Simeon Siegel: Yeah.

Tom Edwards: When you're talking going forward, I'm mainly talking about the Macy's banner, and we plan to close an additional 65 stores over the next 3 years. In the 8-K that we provided that updated our disclosure metrics, we're really pleased to focus on our OLM going-forward sales. I would say this shows a significant improvement over the last 3 years. In 2023, down almost 6%. In 2024, down almost 1%, and this year up 1.7%. I'd focus on a return to growth for those businesses.

Speaker #6: It looks like you're targeting EBIT down about 130 to 150 basis points. It was only down 20 basis points in the fourth quarter. First quarter comps are still slightly positive.

Speaker #6: And the tariffs are about the same impact as fourth quarter. So I'm curious about what deteriorates a little bit in one Q. And then maybe could you just walk us through how the reimagine 200 stores now contribute to the comps in 2026 guidance and how that evolves from first quarter through the rest of the year?

Year up $1 seven so.

I'd focus on a return to growth.

For those those businesses.

Perfect. Thanks, a lot guys best of luck for the year. Thank.

Thank you Simeon.

Thank you. Our next question is coming from Michael Binetti of Evercore ISI. Please go ahead.

Simeon Siegel: Perfect. Thanks a lot, guys. Best of luck for the year.

Speaker #6: Or maybe I can ask it as when we look at the spread of the reimagined stores versus the go-forward comps or the total business comps.

Tony Spring: Thank you, Simeon.

Operator 2: Thank you. Our next question is coming from Michael Binetti of Evercore ISI. Please go ahead.

Operator: Thank you. Our next question is coming from Michael Binetti of Evercore ISI. Please go ahead.

Hey, guys. Thanks for all the detail here.

Could you just walk us through some of the flow through metrics in the first quarter EBIT guidance. It looks like you're targeting EBIT down about 130 to 150. It was only down 20 basis points in the fourth quarter first quarter comps.

Speaker #6: As you expand it to more stores and start to push the initiatives out sequentially through the year, does Reimagine start to break away? And push the comps higher?

Michael Binetti: Hey, guys. Thanks for all the detail here. Could you just walk us through some of the flow-through metrics in the Q1 EBIT guidance? It looks like you're targeting EBIT down about $130 to 150. It was only down 20 basis points in Q4. Q1 comps still slightly positive, and the tariffs are about the same impact as Q4. I'm just curious about what deteriorates a little bit in Q1. Maybe could you just walk us through how the Reimagine 200 stores now contribute to the comps in 2026 guidance and how that evolves from Q1 through the rest of the year?

Simeon Siegel: Perfect. Thanks a lot, guys. Best of luck for the year.

Tony Spring: Thank you, Simeon.

Operator: Thank you. Our next question is coming from Michael Binetti of Evercore ISI. Please go ahead.

Speaker #6: And we see that spread widen? Sure. Thanks for the question, Michael. I'll take the first part into Q1 flow-through to EBIT. So, we are seeing a gross margin impacted by tariffs.

Slightly positive in the tariffs or about the same impact as fourth quarter. So I'm just I'm curious what the.

David Brown: Hey guys, thanks for all the detail here. Could you just walk us through some of the flow-through metrics in the Q1 EBIT guidance? It looks like you're targeting EBIT down about $130 to $150. It was only down 20 basis points in the Q4. Q1 comps still slightly positive, and the tariffs are about the same impact as Q4. So I'm just curious about what deteriorates a little bit in Q1. Then maybe could you just walk us through how the Reimagine 200 stores now contribute to the comps in 2026 guidance and how that evolves from Q1 through the rest of the year?

Michael Binetti: Hey guys, thanks for all the detail here. Could you just walk us through some of the flow-through metrics in the Q1 EBIT guidance? It looks like you're targeting EBIT down about $130 to $150. It was only down 20 basis points in the Q4. Q1 comps still slightly positive, and the tariffs are about the same impact as Q4. So I'm just curious about what deteriorates a little bit in Q1. Then maybe could you just walk us through how the Reimagine 200 stores now contribute to the comps in 2026 guidance and how that evolves from Q1 through the rest of the year?

Deteriorates, a little bit in <unk>, and then maybe could you just walk us through how the re imagine 200 stores now contribute to the comps in 2020 guidance, how that evolves from first quarter through the rest of the year, maybe I can ask it is when we when we look at the spread of the re imagine stores versus the go forward comps or the total business comps.

Speaker #6: 40 to 60 basis points and expect gross margin on the whole to be down in the quarter. But importantly, up through the remainder of the year.

Speaker #6: The other change is in SG&A. We are expecting some additional investments in SG&A through the year, including in Q1. And those are really to support and drive growth.

Michael Binetti: Maybe I can ask it as, you know, when we look at the spread of the reimagined stores versus the go-forward comps or the total business comps, as you expand it to more stores and start to push the initiatives out sequentially through the year, does Reimagine start to break away, and push the comps higher? Do we see that spread widen?

As you expand into more stores and start to push the initiatives out sequentially through the year, just does re imagine start to break away.

Speaker #6: Our investments have driven growth in the past. And we're looking forward to continue to invest including in the reimagine 200 to continue that pace.

And pushed the comps higher and we see that spread widened.

David Brown: Maybe I can ask it as, you know, when we look at the spread of the reimagined stores versus the go-forward comps or the total business comps, as you expand it to more stores and start to push the initiatives out sequentially through the year, does Reimagine start to break away, and push the comps higher? Do we see that spread widen?

Sure.

Thanks for the question Michael I'll take the first part into Q1 flow through to EBIT. So we are seeing gross margin impacted by tariffs 40 to 60 basis points and expect gross margin on the whole to be down in the quarter, but importantly up.

Thomas J. Edwards: Thanks for the question, Michael. I'll take the first part in the Q1 flow through to EBIT. So we are seeing a gross margin impacted by tariffs, 40 to 60 basis points and expect gross margin on the whole to be down in the quarter, but importantly up through the remainder of the year. The other change is in SG&A. We are expecting some additional investments in SG&A through the year, including in Q1, and those are really to support and drive growth. Our investments have driven growth in the past, and we're looking forward to continue to invest, including in the Reimagine 200, to continue that pace. That's really the key difference.

Speaker #6: So, that's really the key difference.

Speaker #8: And relative to the reimagined stores, Mike, you have a convergence that I think begins to happen by the time you get to the latter part of the year and certainly going into next year where the majority of our fleet is in the reimagine program.

For the remainder of the year the other changes in SG&A, we are expecting.

Tom Edwards: Thanks for the question, Michael. I'll take the first part in the Q1 flow through to EBIT. We are seeing a gross margin impacted by tariffs, 40 to 60 basis points and expect gross margin on the whole to be down in the quarter, but importantly up through the remainder of the year. The other change is in SG&A. We are expecting some additional investments in SG&A through the year, including in Q1, and those are really to support and drive growth. Our investments have driven growth in the past, and we're looking forward to continue to invest, including in the Reimagine 200, to continue that pace. That's really the key difference.

Some additional investments in SG&A through the year, including in Q1, and those are really to support and drive growth our investments have driven growth in the past.

Speaker #8: And while they continue to outperform the remainder of the go-forward fleet, the differential is smaller. But we expect comp growth in our reimagined stores and that will help build our confidence for growth in the Macy's brand going forward.

And we're looking forward to continue to invest including in the re imagine 200.

Speaker #4: Okay, thanks very much, guys. Appreciate it.

Two to continue that pace.

Speaker #8: Thanks, Mike.

Speaker #1: Thank you. Our next question is coming from Bob Drubel of BTIG. Please go ahead.

So that's really the key difference and relative to the re imagine stores. Mike you you have a convergence that I think begins to happen by the time you get to the latter part of the year and certainly going into next year, where the majority of our fleet is in the re imaging program and while they continue to outperform.

Speaker #9: Hi. Good morning. I guess two questions for me. The first one is can you outline a bit around the progress that you think you're making with younger consumers?

Tony Spring: Relative to the reimagined stores, Mike, you have a convergence that I think begins to happen by the time you get to the latter part of the year and certainly going into next year, where the majority of our fleet is in the reimagined program. While they continue to outperform the remainder of the go-forward fleet, the differential is smaller. We expect comp growth in our reimagined stores, and that will help build our confidence for growth in the Macy's brand going forward.

Speaker #9: I think you mentioned the Prom event. But just sort of where you're really focused and what you're seeing with that consumer segment. And I guess the second question I have is just around some of the newer brands that you're bringing in.

The remainder of the go forward fleet. The differential is smaller, but we expect comp growth in our re imagine stores and that will help build our confidence for growth in the Macy's brand going forward.

Tony Spring: Relative to the reimagined stores, Mike, you have a convergence that I think begins to happen by the time you get to the latter part of the year and certainly going into next year, where the majority of our fleet is in the Reimagine program. While they continue to outperform the remainder of the go-forward fleet, the differential is smaller. We expect comp growth in our reimagined stores and that will help build our confidence for growth in the Macy's brand going forward.

Speaker #9: Can you just detail a bit on full price selling and sort of what you're seeing with the promotional environment versus your ability to obtain full price as you sort of work through the program?

Okay. Thanks, very much guys I appreciate it.

Thanks, Mike.

Thank you. Our next question is coming from Bob <unk> of <unk>. Please go ahead.

Michael Binetti: Okay. Thanks very much, guys. Appreciate it.

Speaker #9: Thank you.

Tony Spring: Thanks, Mike.

Speaker #8: Sure. Thanks, Bob, for the question. We continue to focus on five different generations that are shopping with us. We believe we have a tremendous opportunity with the next generations of customers.

Operator 2: Thank you. Our next question is coming from Bob Drbul of BTIG. Please go ahead.

Operator: Thank you. Our next question is coming from Bob Drbul of BTIG. Please go ahead.

Hi, Good morning, two questions from me the first one is on.

Can you outline a bit around the progress that you think youre, making with younger consumers I think you mentioned the problem event, but.

Bob Drbul: Hi. Good morning. I guess two questions from me. The first one is, can you outline a bit around the progress that you think you're making with younger consumers? I think you mentioned the prom event, but, you know, just sort of where you're really focused and what you're seeing, you know, with that consumer segment. I guess the second question I have is just around some of the newer brands that you're bringing in. Can you just, you know, detail a bit on full price selling and sort of what you're seeing, you know, with the promotional environment versus, you know, your ability to obtain full price as you sort of work through the program. Thank you.

David Brown: Okay. Thanks very much, guys. Appreciate it.

Michael Binetti: Okay. Thanks very much, guys. Appreciate it.

Speaker #8: As you mentioned, we held a Prom event in over 200 locations. Had tremendous turnout. Activating high schools across the country. Continued to be a resource and destination for Sweet 16.

Tony Spring: Thanks, Mike.

Just sort of where you're really focused in what youre seeing.

Operator: Thank you. Our next question is coming from Bob Drbul of BTIG. Please go ahead.

With that consumer segment and I guess the second question I have is just around some of the newer brands that you're bringing in can you just.

Detailed bit on full price selling and sort of what youre seeing with.

Speaker #8: As I mentioned, 25,000 people getting married, registered at Bloomingdale's. 75% of them are in the Gen Z. And Gen Alpha is more so Gen Z kind of population.

With the promotional environment versus your ability to painful price as you sort of worked through the program. Thank you.

Sure. Thanks, Bob for the question.

Speaker #8: But other categories like timepieces, fragrances, tend to skew younger. And I think give us the opportunity to continue to grow with that cohort. We are a destination for first job, first home, marriage.

Continuing to focus on five different generations that are shopping with us. We believe we have a tremendous opportunity with the next generations of customers.

Tony Spring: Sure. Thanks, Bob, for the question. Continuing to focus on the five different generations that are shopping with us, we believe we have a tremendous opportunity with the next generations of customers. As you mentioned, we held a prom event in over 200 locations, had tremendous turnout activating high schools across the country, continued to be a resource and destination for Sweet Sixteen. As I mentioned, 25,000 people getting married registered at Bloomingdale's. 75% of them are in the Gen Z and Gen Alpha, I guess, more so Gen Z kind of a population. Other categories like timepieces, fragrances tend to skew younger and I think give us the opportunity to continue to grow with that cohort.

As you mentioned, we held our problem event.

And over 200 locations had tremendous turnout activating high schools across the country continue to be a resource and destination for sweet 16.

Speaker #8: And the moments in life that I think expose you to these multiple generations of consumers. The newer brands we're very pleased with. And I think the best indication of our full price sell-through and of our performance is the fact that the brands are expanding distribution with us and adding more stores.

Tony Spring: Sure. Thanks, Bob, for the question. Continuing to focus on five different generations that are shopping with us, we believe we have a tremendous opportunity with the next generations of customers. As you mentioned, we held a prom event in over 200 locations, had tremendous turnout activating high schools across the country, continued to be a resource and destination for Sweet Sixteen. As I mentioned, 25,000 people getting married registered at Bloomingdale's. Seventy-five percent of them are in the Gen Z and Gen Alpha, I guess more so Gen Z kind of a population. But other categories like timepieces, fragrances tend to skew younger and I think give us the opportunity to continue to grow with that cohort.

I mentioned 25000 people getting married registered at Bloomingdale's, 75% of them are in the Gen Z N. Gen Alpha I guess more so gen Z kind of population.

Speaker #8: We believe in the breadth of Good, Better, Best. We need to have the right mix of assortment in opening price point as well as not undershoot the customer in terms of their interest in most wanted or sought-after brands.

But other categories like a time pieces fragrances tend to skew younger and I think give us the opportunity to continue to grow with that cohort. We are a destination for first job first home marriage.

Speaker #8: So we want to have that breadth of polo Ralph Lauren and Coach and Reese and Theory. And at the same time, we want to have the right, good, and better brands within our mix so that we can be a destination for customers that are looking for a variety of brands and price points.

Tony Spring: We are a destination for first job, first home, marriage, and the moments in life that I think expose you to these multiple generations of consumers. The newer brands we're very pleased with, and I think the best indication of our full price sell-through and of our performance is the fact that the brands are expanding distribution with us and adding more stores. We believe in the breadth of good, better, best. We need to have the right mix of assortment and opening price point, as well as not undershoot the customer in terms of their interest in most wanted or sought-after brands.

And the moments in life that I think.

Bose you to these multiple generations of consumers.

The newer brands, we're very pleased with and I think the best indication of our full price sell through and of our performance is the fact that the brands are expanding distribution with us and adding more stores, we believe and the breadth of good better best we need to have the right mix of assortment and opening price point as well as not undershoot the customer in terms of their interest.

Speaker #4: And Bob, I'd add that we ended the year with inventories down and in a very good position with increased newness. And we have ample open-to-buy.

Speaker #4: So we can chase into these trends should they occur and also flexibility otherwise. So we're looking to maintain our flexibility to deliver against these consumers.

And most wanted are sought after brands. So we want to have that breadth of polo, Ralph Lauren and coach and Reece in theory and at the same time, we want to have the right good and better brands within our mix. So that we can be a destination for customers that are looking for a variety of brands and price points.

Speaker #6: Thank you. Good luck.

Speaker #8: Thank you.

Speaker #1: Thank you. Our next question is coming from Jay Soul of UBS. Please go ahead.

Tony Spring: We wanna have that breadth of Polo Ralph Lauren, Coach, Reiss, and Theory, and at the same time, we wanna have the right, good, and better brands within our mix so that we can be a destination for customers that are looking for a variety of brands and price points.

Speaker #4: Great. Thank you so much. Tom, two questions for you. One is you just talked about some of the SG&A investments. If you could elaborate a little bit more on what you're spending on.

Bob I'd add that we ended the year with inventories down in a very good position with increased newness.

Tony Spring: We wanna have that breadth of Polo Ralph Lauren, Coach, Reiss, and Theory, and at the same time, we wanna have the right, good and better brands within our mix so that we can be a destination for customers that are looking for a variety of brands and price points.

Speaker #4: And then within the interest expense guide of $110 million for fiscal '26, can you just maybe talk about what's driving that? I think interest expense was $20 million in 4Q.

Thomas J. Edwards: Bob, I'd add that we ended the year with inventories down and in a very good position with increased newness. We have ample open to buy so we can chase into these trends should they occur, and also flexibility otherwise. We're looking to maintain our flexibility to deliver against these consumers.

And we have ample open to buy so we can chase into these trends should should they occur and also flexibility otherwise.

Speaker #4: So, just kind of wondering why it's going up on a run-rate basis if we're looking to '26. Thank you so much.

So we're looking to maintain our flexibility to deliver against these consumers.

Tom Edwards: Bob, I'd add that we ended the year with inventories down and in a very good position with increased newness. We have ample open to buy so we can chase into these trends should they occur, and also flexibility otherwise. We're looking to maintain our flexibility to deliver against these consumers.

Speaker #8: Sure, I'd be happy to help, Jay. On the SG&A, investments first and foremost are in the Reimagine 200 as we expand that. And then in others, it's across Macy's and Bloomingdale's.

Yeah.

Good luck.

Thank you.

Thank you. Our next question is coming from Jay sole of UBS. Please go ahead.

Bob Drbul: Thank you. Good luck.

Tony Spring: Thank you.

Operator 1: Thank you. Our next question is coming from Jay Sole of UBS. Please go ahead.

Operator: Thank you. Our next question is coming from Jay Sole of UBS. Please go ahead.

Great. Thank you so much Tom two questions for you. One is you just talked about some of the SG&A investments if you could elaborate a little bit more on what youre spending on and then within the interest expense guide of $110 million for fiscal 'twenty six.

Speaker #8: And investments in digital and our technology areas. As I look at this year's SG&A increase of approximately 1% to 2%, it also includes lapping greater savings last year when we had a more significant number of store closures impacting the year in 2024.

Speaker 15: Great. Thank you so much. Tom, two questions for you. One is, you just talked about some of the SG&A investments. If you could elaborate a little bit more on what you're spending on. And then within the interest expense guide of $110 million for fiscal 2026, can you maybe talk about what's driving that? I think interest expense was $20 million in core Q4. So just kind of wondering why it's going up on a run rate basis if we look into 2026. Thank you so much.

Jay Sole: Great. Thank you so much. Tom, two questions for you. One is, you just talked about some of the SG&A investments. If you could elaborate a little bit more on what you're spending on. And then within the interest expense guide of $110 million for fiscal 2026, can you maybe talk about what's driving that? I think interest expense was $20 million in core Q4. So just kind of wondering why it's going up on a run rate basis if we look into 2026. Thank you so much.

Bob Drbul: Thank you. Good luck.

Tony Spring: Thank you.

Operator: Thank you. Our next question is coming from Jay Sole of UBS. Please go ahead.

Can you just maybe talk about what's driving that I think interest expense was $20 million of <unk> Suisse.

Speaker 19: Great. Thank you so much. Tom, two questions for you. One is, you just talked about some of the SG&A investments. If you could elaborate a little bit more on what you're spending on. Within the interest expense guide of $110 million for fiscal 2026, can you maybe talk about what's driving that? I think interest expense was $20 million in Q4. Just kind of wondering why it's going up on a run rate basis if we look into 2026. Thank you so much.

Jay Sole: Great. Thank you so much. Tom, two questions for you. One is, you just talked about some of the SG&A investments. If you could elaborate a little bit more on what you're spending on. Within the interest expense guide of $110 million for fiscal 2026, can you maybe talk about what's driving that? I think interest expense was $20 million in Q4. Just kind of wondering why it's going up on a run rate basis if we look into 2026. Thank you so much.

Just kind of wondering why it's going up.

Speaker #8: We closed 64 stores in the past year, beginning of this year. Announced 14 store closures. So that's also a factor in our SG&A. I would say that we maintain an always-on approach to generating savings.

On a run rate basis, if we look into 2006. Thank you so much.

Sure I'd be happy to help Jay on the SG&A investments first and foremost is in the re imagine 200, as we expand that and then in others.

Thomas J. Edwards: Sure. I'd be happy to help, Jay. On the SG&A investments, first and foremost, is in the Reimagine 200 as we expand that. In others, it's across Macy's and Bloomingdale's, and investments in digital, and our technology areas. As I look at this year's SG&A increase of approximately 1 to 2%, it also includes lapping greater savings last year when we had more significant number of store closures impacting the year. In 2024, we closed 64 stores. In the past year, the beginning of this year, announced 14 store closures. So that's also a factor in our SG&A. I would say that we maintain an always-on approach to generating savings. We have seen that pay off, and deliver results, through 2025, and we're continuing that into 2026.

Speaker #8: We have seen that pay off. And deliver results through 2025. And we're continuing that into 2026. From an interest expense point of view, we're really looking at a more consistent our overall debt level hasn't changed aside from the refinancing at the very beginning of last year.

Across macys and bloomingdales.

And investments in digital.

Our technology areas.

Tom Edwards: Sure. I'd be happy to help, Jay. On the SG&A investments, first and foremost

As I look at this year's SG&A increase of approximately 1% to 2%.

Tony Spring: It is in the Reimagine 200 as we expand that. Then in others, it's across Macy's and Bloomingdale's, and investments in digital, and our technology areas. As I look at this year's SG&A increase of approximately 1 to 2%, it also includes lapping greater savings last year when we had more significant number of store closures impacting the year. In 2024, we closed 64 stores in the past year. In the beginning of this year, announced 14 store closures. So that's also a factor in our SG&A. I would say that we maintain an always-on approach to generating savings. We have seen that pay off, and deliver results through 2025, and we're continuing that into 2026.

It also includes lapping greater savings last year, when we had more significant number of store closures impacting the year in 2024, we closed 64 stores in the <unk>.

Speaker #8: So you would expect the $110 or the $100 million very consistent with the prior year.

First year beginning of this year announced 14 store closures. So that's also a factor in our SG&A I would say that we maintain and always on approach to generating savings we have seen that pay off.

Speaker #4: Okay. Thank you so much.

Speaker #8: You're welcome.

Speaker #1: Thank you. Our next question is coming from Marnie Shapiro of Retail Tracker. Please go ahead.

Speaker #10: Hey, guys. Congratulations. The stores look absolutely fantastic. Congratulations on that, especially very impressed with what I'm seeing at Macy's. Can you talk a little bit about the customer coming into Macy's?

And deliver results through 2025, and we're continuing that into 2026.

From an interest expense point of view.

What we're really looking at a more consistent our overall debt level hasnt changed aside from the refinancing at the very beginning of last year.

Thomas J. Edwards: From an interest expense point of view, we're really looking at a more consistent our overall debt level hasn't changed aside from the refinancing at the very beginning of last year. You would expect the $110 or the $100 million very consistent with the prior year.

Speaker #10: Are you getting I know Bloomingdale's, I think you've talked about it quite a bit. And you're seeing the generational shopping also. Are you seeing that at Macy's beyond, say, the Prom event?

You should expect the $110 million to $100 million very consistent with the prior year.

Speaker #10: Are you getting a younger customer back into the store? Is the online shopper a different shopper? Are you getting the younger customer in through online?

Tony Spring: From an interest expense point of view, we're really looking at a more consistent. Our overall debt level hasn't changed aside from the refinancing at the very beginning of last year. You would expect the $110 or $100 million very consistent with the prior year.

Okay. Thank you so much.

Okay.

Speaker #10: And then I just have one quick follow-up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in '26.

Thank you. Our next question is coming from Marni Shapiro of retail tracker. Please go ahead.

Speaker 15: Okay. Thank you so much.

Jay Sole: Okay. Thank you so much.

Thomas J. Edwards: Welcome.

Operator 1: Thank you. Our next question is coming from Marni Shapiro of The Retail Tracker. Please go ahead.

Operator: Thank you. Our next question is coming from Marni Shapiro of The Retail Tracker. Please go ahead.

Hey, guys congratulations the stores look absolutely fantastic.

Speaker #8: Sure. Marnie, thanks for the question. The both Macy's and Bloomingdale's have an opportunity with the younger consumer. I think it's both being a destination for all of these life's moments that begin from bar mitzvah, bat mitzvah, confirmation, Sweet 16s, and yes, the Prom events and the first jobs and the weddings that happen and that we are definitely driving those consumers along in some cases with their parents or sisters or siblings into the stores.

Congratulations on that especially very impressed with what I'm seeing at Macy's can you talk a little bit about.

Speaker 16: Hey, guys. Congratulations. The stores look absolutely fantastic. Congratulations on that, especially. Very impressed with what I'm seeing at Macy's. Can you talk a little bit about the customer coming into Macy's? Are you getting I know Bloomingdale's. I think you've talked about it quite a bit, and you're seeing the generational shopping also. Are you seeing that at Macy's, beyond, say, the prom event? Are you getting a younger customer back into the store? Is the online shopper a different shopper? Are you getting the younger customer in through online? Then I just have one quick follow-up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in 2026.

Marni Shapiro: Hey, guys. Congratulations. The stores look absolutely fantastic. Congratulations on that, especially. Very impressed with what I'm seeing at Macy's. Can you talk a little bit about the customer coming into Macy's? Are you getting I know Bloomingdale's. I think you've talked about it quite a bit, and you're seeing the generational shopping also. Are you seeing that at Macy's, beyond, say, the prom event? Are you getting a younger customer back into the store? Is the online shopper a different shopper? Are you getting the younger customer in through online? Then I just have one quick follow-up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in 2026.

David Brown: Okay. Thank you so much.

Jay Sole: Okay. Thank you so much.

Tony Spring: Welcome.

The customer coming into Macy's are you getting I know bloomingdale's, I think you've talked about it quite a bit and you're seeing the generational shopping also are you seeing that at Macy's beyond say the problem event are you getting a younger customer back into the store.

Operator: Thank you. Our next question is coming from Marni Shapiro of Retail Tracker. Please go ahead.

Speaker 20: Hey, guys. Congratulations. The stores look absolutely fantastic. Congratulations on that. Especially, very impressed with what I'm seeing at Macy's. Could you talk a little bit about the customer coming into Macy's? Are you getting... I know at Bloomingdale's, I think you've talked about it quite a bit, and you're seeing the generational shopping also. Are you seeing that at Macy's, beyond, say, the prom event? Are you getting a younger customer back into the store? Is the online shopper a different shopper? Are you getting the younger customer in through online? And then I just have one quick follow-up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in 2026.

Marni Shapiro: Hey, guys. Congratulations. The stores look absolutely fantastic. Congratulations on that. Especially, very impressed with what I'm seeing at Macy's. Could you talk a little bit about the customer coming into Macy's? Are you getting... I know at Bloomingdale's, I think you've talked about it quite a bit, and you're seeing the generational shopping also. Are you seeing that at Macy's, beyond, say, the prom event? Are you getting a younger customer back into the store? Is the online shopper a different shopper? Are you getting the younger customer in through online? And then I just have one quick follow-up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in 2026.

Is the online shopper different shopper or are you getting the younger customer into online and then I just have one quick follow up on the beauty business. If you could just give us a quick update there about what's changing there or expected to change in 2006.

Speaker #8: And digital certainly is an opportunity for us to capture a younger consumer who's looking for a broad array of price points and brands. And Marketplace gives us the opportunity to lean into baby and into maternity.

Sure Marty Thanks for the question.

<unk>.

Both Macy's and Bloomingdale's are have an opportunity with the younger consumer I think it's both being a destination for all of these life's moments that begin from bar Mitzvahs bought Mitzvahs confirmation sweet sixteens and yes. The problem events in the first jobs in the weddings that happen and that we are definitely driving.

Tony Spring: Sure, Marni. Thanks for the question. Both Macy's and Bloomingdale's have an opportunity with the younger consumer. I think it's both being a destination for all of these life's moments that begin from bar mitzvahs, bat mitzvahs, confirmation, sweet sixteens, and yes, the prom events and the first jobs and the weddings that happen. We are definitely driving those consumers along, in some cases with their parents or sisters or siblings, into the stores. Digital certainly is an opportunity for us to capture a younger consumer who's looking for a broad array of price points and brands. Marketplace gives us the opportunity to lean into baby and into maternity and into other aspects of life that give us more exposure to the younger consumer.

Speaker #8: And into other aspects of life that give us more exposure to the younger consumer. The Prom event just is an example because I was in our stores at both Macy's and Bloomingdale's.

Tony Spring: Sure, Marni. Thanks for the question. Both Macy's and Bloomingdale's have an opportunity with the younger consumer. I think it's both being a destination for all of these life's moments that begin from bar mitzvahs, bat mitzvahs, confirmations, sweet sixteens, and yes, the prom events and the first jobs and the weddings that happen, and we are definitely driving those consumers along, in some cases with their parents or sisters or siblings, into the stores. Digital certainly is an opportunity for us to capture a younger consumer who's looking for a broad array of price points and brands. Marketplace gives us the opportunity to lean into baby and into maternity and into other aspects of life that give us more exposure to the younger consumer.

Speaker #8: There's just a tremendous amount of traffic in the stores. And it is all these young consumers. The activation of these high schools across the country was phenomenal.

Those consumers along in some cases with their parents or sisters or siblings into the stores and digital certainly is an opportunity for us to capture.

Speaker #8: And I think just underscores the interest that these local communities have in national retailers kind of stepping up and doing something distinctively different to make sure that we're obviously a part of their life's moments.

Hunger consumer who is looking for a broad array of price points and brands and marketplace gives us the opportunity to lean into baby and into maternity and into other aspects of life that give us more exposure to the younger consumer.

Speaker #8: What was your question on beauty?

Speaker #10: I was just kind of curious. You guys have a stronghold in fragrance, obviously. There are a lot of new brands in beauty that are targeting a younger consumer.

The problem event, just as an example, because I was in our stores at both Macy's and Bloomingdale's.

Speaker #10: I see some of them filtering in, especially Bloomingdale's. Are you pushing the envelope on that and just an update on blue, mercury, and any changes happening there?

Tony Spring: The prom event, just as an example, because I was in our stores at both Macy's and Bloomingdale's, you know, there's just a tremendous amount of traffic in the stores, and it is all these young consumers. The activation of these high schools across the country was phenomenal, and I think just underscores the interest that these local communities have in national retailers kind of stepping up and doing something distinctively different, to make sure that we're obviously a part of their life's moments. What was your question on beauty?

A tremendous amount of traffic in the stores and it is all these young consumers the activation of these high schools across the country was was phenomenal and I think just underscores the interest that these local communities have in national retailers kind of stepping up and doing something distinctively different.

Speaker #8: Sure. We had growth again in the fourth quarter at blue mercury. Finished the year with growth across the nameplate. We are continuing to see the strength at blue mercury and dermatological skincare.

Tony Spring: The prom event just as an example, 'cause I was in our stores at both Macy's and Bloomingdale's. You know, there's just a tremendous amount of traffic in the stores. It is all these young consumers. The activation of these high schools across the country was phenomenal, and I think just underscores the interest that these local communities have in national retailers kinda stepping up and doing something distinctively different, to make sure that we're obviously a part of their life's moments. What was your question on beauty?

To make sure that we're obviously a part of their life's moments.

What was your question on beauty.

Speaker #8: And brands that are not as available in more mainstream stores and as it relates to Bloomingdale's and Macy's, we are absolutely leaning into newness as well as partnering with the major brands on how we make the counter a greater destination, greater interest, how the beauty advisor with the free services offers her consultancy and helps people with their beauty regimen.

I was just kind of curious you guys have a strong hold in fragrance. Obviously, there are a lot of new brands in beauty that are targeting a younger consumer I see some of them filtering and especially at Bloomingdales are you are you pushing the envelope on that and just an update on blueprint blue Mercury and any changes happening there.

Speaker 16: I was just kind of curious. You guys have a stronghold in fragrance, obviously. There are a lot of new brands in beauty that are targeting a younger consumer. I see some of them filtering in, especially Bloomingdale's. Are you pushing the envelope on that? And just an update, you know, on Bluemercury and any changes happening there.

Marni Shapiro: I was just kind of curious. You guys have a stronghold in fragrance, obviously. There are a lot of new brands in beauty that are targeting a younger consumer. I see some of them filtering in, especially Bloomingdale's. Are you pushing the envelope on that? And just an update, you know, on Bluemercury and any changes happening there.

Speaker 20: I was just kind of curious. You guys have a stronghold in fragrance, obviously. There are a lot of new brands in beauty that are targeting a younger consumer. I see some of them filtering in, especially at Bloomingdale's. Are you pushing the envelope on that? Just an update, you know, on Bluemercury and any changes happening there.

Marni Shapiro: I was just kind of curious. You guys have a stronghold in fragrance, obviously. There are a lot of new brands in beauty that are targeting a younger consumer. I see some of them filtering in, especially at Bloomingdale's. Are you pushing the envelope on that? Just an update, you know, on Bluemercury and any changes happening there.

Sure we had growth again in the fourth quarter at Blue Mercury.

Tony Spring: Sure. You know, we had growth again in Q4 at Bluemercury. Finished the year with growth across the nameplate. We are continuing to see the strength of Bluemercury in dermatological skincare and brands that are not as available in more mainstream stores.

Finished the year with with growth.

Speaker #8: Because we know we're seeing back to young people, kids as young as 12, 13, 14, starting a skincare regimen. And the mother is looking for someone to help with that.

Across our.

The nameplate.

We are continuing to see the strength of Blue Mercury and dermatological skin care and brands that are not as available and more mainstream stores and as it relates to bloomingdale's and Macy's, we are absolutely leaning into newness as well as partnering with the major brands on how we make the <unk>.

Speaker #8: So you're not just putting anything on your skin. You're trying to find actually what's going to work with your skin. And so we're proud of the breadth of the assortment that we carry and that we continue to expand brands like Sicily and La Mer and that we also introduce newness from Clarins as well as play in the color space with brands like Victoria Beckham Beauty and others.

Tony Spring: Sure. You know, we had growth again in Q4 at Bluemercury. Finished the year with growth across the nameplate. We are continuing to see the strength at Bluemercury in dermatological skincare, and brands that are not as available in more mainstream stores.

Speaker 16: Mm-hmm.

Marni Shapiro: Mm-hmm.

Tony Spring: As it relates to Bloomingdale's and Macy's, we are absolutely leaning into newness, as well as partnering with the major brands on how we make the counter a greater destination, greater interest, how the beauty advisor with the free services offers her consultancy and helps people with their beauty regimen. Because we know we're seeing back to young people, kids as young as 12, 13, 14 starting a skincare regimen. The mother is looking for someone to help with that. You're not just putting anything on your skin. You're trying to find actually what's gonna work with your skin.

<unk>, a greater destination greater interest how the beauty advisor with the free services offers her consultancy and helps people with their beauty regimen, because we know we're seeing.

Speaker #10: Fantastic. Thanks, guys. Best of luck for the next quarter.

Speaker 20: Mm-hmm.

Marni Shapiro: Mm-hmm.

Speaker #8: Thanks, Marnie.

Speaker #1: Thank you. At this time, I'd like to turn the floor back over to Mr. Spring for closing comments.

Back to young people kids as young as 12, 13, 14, starting a skincare regimen and the mother is looking for someone to help with that so you're not just putting anything on your skin youre trying to find actually what's going to work with your skin and so we're proud of the breadth of the assortment that we carry and that we continue to expand brands like.

Speaker #8: Thank you, everyone, for your thoughtful questions. We appreciate the interest in Macy's, Inc. And we look forward to updating you on our progress on the first quarter call.

Speaker #8: Have a great day and rest of the week. Take care.

Speaker #1: Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time.

Tony Spring: We're proud of the breadth of the assortment that we carry and that we continue to expand brands like Sisley and La Mer, and that we also introduce newness from Clarins, as well as play in the color space with brands like Victoria Beckham Beauty and others.

Sicily, and La Mer and that we also introduced newness from Clarens as well as play in the color space with brands like Victoria, Beckham beauty and others.

Fantastic. Thanks, guys best of luck in the next quarter I think marni.

Tony Spring: We're proud of the breadth of the assortment that we carry and that we continue to expand brands like Sisley-Paris and La Mer, and that we also introduce newness from Clarins, as well as play in the color space with brands like Victoria Beckham Beauty and others.

Thank you at this time I'd like to turn the floor back over to Mr. Spring for closing comments.

Speaker 16: Fantastic. Thanks, guys. Best of luck in the next quarter.

Marni Shapiro: Fantastic. Thanks, guys. Best of luck in the next quarter.

Tony Spring: Thanks, Marni.

Operator 1: Thank you. At this time, I'd like to turn the floor back over to Mr. Spring for closing comments.

Operator: Thank you. At this time, I'd like to turn the floor back over to Mr. Spring for closing comments.

Thank you everyone for your thoughtful questions. We appreciate the interest in Macy's, Inc. And we look forward to updating on our progress on our first quarter call have a great day and rest of the week take care.

Tony Spring: Thank you everyone for your thoughtful questions. We appreciate the interest in Macy's, Inc., and we look forward to updating you on our progress on the Q1 call. Have a great day and rest of the week. Take care.

Speaker 20: Fantastic. Thanks, guys. Best of luck in the next quarter.

Marni Shapiro: Fantastic. Thanks, guys. Best of luck in the next quarter.

Tony Spring: Thanks, Marni.

Operator: Thank you. At this time, I'd like to turn the floor back over to Mr. Spring for closing comments.

Ladies and gentlemen, thank you for your participation. This concludes today's event you may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

Tony Spring: Thank you, everyone, for your thoughtful questions. We appreciate the interest in Macy's, Inc., and we look forward to updating you on our progress on the Q1 call. Have a great day and rest of the week. Take care.

Operator 1: Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your line or log off the webcast at this time, and enjoy the rest of your day.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your line or log off the webcast at this time, and enjoy the rest of your day.

Q4 2025 Macy's Inc Earnings Call

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