Macy's Inc. Goldman Sachs Global Consumer and Retail Conference

Thank you. Great to be here.

Thanks for the question. First of all, great to be with all of you. The A Bold New Chapter is working. We are two and a half years into the strategy. When we began, we talked to 60,000 customers at Macy's and really had a good understanding of what we needed to do to improve the quality of the business. It was make sure that we had compelling stores. We closed the underproductive stores. We started our Reimagine program. We started with 50 to make sure that we could get it right and learn, added another 75. The result two and a half years later, nine of 10 quarters, those Reimagine stores have grown. We have now had five consecutive quarters of growth at Macy's, six quarters of beating our guidance on the Street, two quarters of net sales growth. We obviously accelerated and differentiated further Bloomingdale's and Bluemercury.

Both those brands continue to grow. We are on two straight quarters of double-digit growth at Bloomingdale's and continuous growth at Bluemercury. We are still in the early innings of our strategy and work, which to me is more opportunity for the brands and the business. We have the opportunity to continue to refine our assortments. We have the opportunity to continue to create a better experience, both physically and digitally, for the customer. Since the start of the strategy, our net promoter score at the Macy's stores are up 10 full points. The experience for the customer is significantly better than it was at the start of the strategy. I step back and say the A Bold New Chapter was intended to grow the company. We are growing the company. The A Bold New Chapter was intended to improve the quality of the customer experience. The customer experience is far better today.

The strategy was intended to accelerate the growth of our luxury brands. The luxury brands are growing and have unique positions in the marketplace. The intent of the strategy was to improve our end-to-end operations. We are delivering packages faster, less expensively. We closed underproductive supply chain centers, opened a state-of-the-art center in China Grove. All in all, a lot of progress, but a lot of opportunity still in front of us.

Going back to the beginning of the Reimagine program, we picked the first 50 stores, and we now have three cohorts of stores, 50, 75, or the Reimagine 200. All cohorts are growing. As I said, eight of nine quarters, we've had growth in those stores. But the Reimagine program was like a recipe. It was the ingredients that have to all be done at the same time. We needed better merchandising. We needed better merchandise presentation, storytelling. We needed to improve the fitting room experience. We needed more colleagues in our store. We added people to handbags, people to shoes, people to work in the fitting room. We needed to make sure that our density on the floor was reflective of how we wanted the customer to shop within the stores. We needed to make sure that we had the right proportion of best, better, good.

We're a department store. We obviously want to have a range of price points. I always say more variety, less redundancy. But we had way too much of the same thing floor after floor, department after department. When you ask me to break apart what is the most important ingredient in the strategy, it's like asking me which is my favorite child. I like all of it, and when it all works together, you get the kind of net promoter score improvement, you get the kind of continuous sales improvement. You get the kind of response where the vendors in the vendor community want to work with us and want to be a part of these stores. I think the Reimagine program is a great case in point for the future of what Macy's stores can be.

60% of our store base now, 75% of our Macy's store business is in the Reimagine program.

I would add, when we look at the returns on investment, we are pleased first with the performance. Investment returns start from growth. The Reimagine stores are growing, as Tony noted, for 9 out of the last 10 quarters. When we look at our investment, it is capital light. We are investing in people, we are investing in fitting room and making sure that the flow is correct, as well as events and marketing. Importantly, we have been learning and iterating as we have moved from the first 50 to the next 75 and adding up to 200. We are getting more effective and more efficient in what we invest in and make sure it is appropriate for the local market and what that store stands for in that market.

Over that time, we have seen improvements, initial sales growth immediately, continued year-over-year for the different cohorts, and then profitability following that after the initial investments. We are very pleased with the returns. We are looking to expand our Reimagine fleet, where as a matter of fact, we are testing or bringing forward some pilots into this year to get a head start into the following year for 2027, and look forward to continue to build it out as a key part of the strategy for A Bold New Chapter.

First of all, I love Bloomingdale's. I grew up at Bloomingdale's, 35 years of my career at Bloomingdale's. It is a special brand. If we did not own Bloomingdale's, I would want to buy it. It is that good. They have had double-digit growth 2 quarters, the last 2 quarters of 2025, up over 9%, so really on 4 straight quarters of outstanding growth and performance. It starts first with the right strategy. They have the right strategy. They cater to an advanced contemporary to luxury consumer. Obviously, great merchandising skill in the company, great leadership, strong execution, and a long culture of growth and imagination and innovation. Disruption in the marketplace certainly helps to fuel the growth that Bloomingdale's is having. But without the right leadership and strategy and structure and culture and execution, they would not be able to capitalize on any level of disruption.