Macy's (M) 10-Q 25 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover	6 Months Ended
	Jul. 29, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 2023
Document Transition Report	false
Entity File Number	1-13536
Entity Registrant Name	Macy's, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3324058
Entity Address, Address Line One	151 West 34th Street
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	212
Local Phone Number	494-1621
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	M
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	273,634,211
Entity Central Index Key	0000794367
Current Fiscal Year End Date	--02-03
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Income Statement [Abstract]
Net sales	$ 5,130	$ 5,600	$ 10,112	$ 10,948
Other revenue	150	234	341	451
Total revenue	5,280	5,834	10,453	11,399
Cost of sales	(3,176)	(3,422)	(6,164)	(6,652)
Selling, general and administrative expenses	(1,980)	(2,011)	(3,930)	(3,917)
Gains on sale of real estate	4	0	15	42
Impairment, restructuring and other costs	(4)	(2)	(6)	(10)
Operating income	124	399	368	862
Benefit plan income, net	4	7	8	14
Settlement charges	(122)	0	(122)	0
Interest expense, net	(36)	(42)	(73)	(89)
Losses on early retirement of debt	0	0	0	(31)
Income (loss) before income taxes	(30)	364	181	756
Federal, state and local income tax benefit (expense)	8	(89)	(48)	(195)
Net income (loss)	$ (22)	$ 275	$ 133	$ 561
Basic earnings (loss) per share (in dollars per share)	$ (0.08)	$ 1.01	$ 0.49	$ 2.02
Diluted earnings (loss) per share (in dollars per share)	$ (0.08)	$ 0.99	$ 0.48	$ 1.97

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (22)	$ 275	$ 133	$ 561
Actuarial gain on post employment and postretirement benefit plans, before tax	(1)	0	(1)	0
Amortization of net actuarial loss and prior service credit on post employment and postretirement benefit plans included in net income, before tax	1	5	3	10
Settlement charges, before tax	122	0	122	0
Tax effect related to items of other comprehensive income	(31)	(1)	(32)	(3)
Total other comprehensive income, net of tax effect	91	4	92	7
Comprehensive income	$ 69	$ 279	$ 225	$ 568

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Current Assets:
Cash and cash equivalents	$ 438	$ 862	$ 300
Receivables	223	300	219
Merchandise inventories	4,129	4,267	4,610
Prepaid expenses and other current assets	411	424	387
Income tax receivable	70	0	0
Total Current Assets	5,271	5,853	5,516
Property and Equipment - net of accumulated depreciation and amortization of $4,905, $4,633 and $4,820	5,876	5,913	5,656
Right of Use Assets	2,692	2,683	2,715
Goodwill	828	828	828
Other Intangible Assets – net	431	432	433
Other Assets	1,206	1,157	1,194
Total Assets	16,304	16,866	16,342
Current Liabilities:
Merchandise accounts payable	1,978	2,053	2,290
Accounts payable and accrued liabilities	2,206	2,750	2,395
Income taxes	0	58	23
Total Current Liabilities	4,184	4,861	4,708
Long-Term Debt	2,997	2,996	2,995
Long-Term Lease Liabilities	2,975	2,963	3,008
Deferred Income Taxes	933	947	948
Other Liabilities	1,005	1,017	1,152
Shareholders' Equity	4,210	4,082	3,531
Total Liabilities and Shareholders’ Equity	$ 16,304	$ 16,866	$ 16,342

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 4,905	$ 4,633	$ 4,820

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Equity	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Jan. 29, 2022	$ 3,621	$ 3	$ 517	$ 5,268	$ (1,545)	$ (622)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	286			286
Other comprehensive income	4					4
Common stock dividends	(45)			(45)
Stock repurchases	(600)				(600)
Stock-based compensation expense	13		13
Stock issued under stock plans	(1)		(54)		53
Ending balance at Apr. 30, 2022	3,278	3	476	5,509	(2,092)	(618)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	275			275
Other comprehensive income	103					3
Common stock dividends	(42)			(42)
Stock-based compensation expense	17		17
Stock issued under stock plans	0		(43)		43
Ending balance at Jul. 30, 2022	3,531	3	450	5,742	(2,049)	(615)
Beginning balance at Jan. 28, 2023	4,082	3	467	6,268	(2,038)	(618)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	155			155
Other comprehensive income	1					1
Common stock dividends	(45)			(45)
Stock repurchases	(25)				(25)
Stock-based compensation expense	14		14
Stock issued under stock plans	(12)		(108)		96
Ending balance at Apr. 29, 2023	4,170	3	373	6,378	(1,967)	(617)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(22)			(22)
Other comprehensive income	91					91
Common stock dividends	(45)		1	(46)
Stock-based compensation expense	16		16
Stock issued under stock plans	0		(38)		38
Ending balance at Jul. 29, 2023	$ 4,210	$ 3	$ 352	$ 6,310	$ (1,929)	$ (526)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022
Statement of Stockholders' Equity [Abstract]
Common stock, dividends (usd per share)	$ 0.1654	$ 0.1654	$ 0.1575	$ 0.1575

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Cash flows from operating activities:
Net income	$ 133	$ 561
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment, restructuring and other costs	6	10
Settlement charges	122	0
Depreciation and amortization	433	413
Stock-based compensation expense	30	30
Gains on sale of real estate	(15)	(42)
Benefit plans	3	10
Amortization of financing costs and premium on acquired debt	5	5
Deferred income taxes	(46)	(38)
Changes in assets and liabilities:
Decrease in receivables	77	78
Decrease (increase) in merchandise inventories	138	(227)
Decrease (increase) in prepaid expenses and other current assets	10	(28)
(Decrease) increase in merchandise accounts payable	(53)	100
Decrease in accounts payable and accrued liabilities	(418)	(455)
Decrease in current income taxes	(121)	(72)
Change in other assets and liabilities	(33)	(42)
Net cash provided by operating activities	271	303
Cash flows from investing activities:
Purchase of property and equipment	(390)	(378)
Capitalized software	(174)	(204)
Disposition of property and equipment	32	73
Other, net	1	(6)
Net cash used by investing activities	(531)	(515)
Cash flows from financing activities:
Debt issued	0	850
Debt issuance costs	0	(21)
Debt repaid	(1)	(1,140)
Debt repurchase premium and expenses	0	(29)
Dividends paid	(90)	(87)
Decrease in outstanding checks	(35)	(172)
Acquisition of treasury stock	(38)	(601)
Net cash used by financing activities	(164)	(1,200)
Net decrease in cash, cash equivalents and restricted cash	(424)	(1,412)
Cash, cash equivalents and restricted cash beginning of period	865	1,715
Cash, cash equivalents and restricted cash end of period	441	303
Supplemental cash flow information:
Interest paid	82	108
Interest received	18	1
Income taxes paid, net of refunds received	$ 215	$ 305

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Jul. 29, 2023	Jul. 30, 2022
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents	$ 3	$ 3

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jul. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	Organization and Summary of Significant Accounting Policies Nature of Operations Macy's, Inc., together with its subsidiaries (the "Company"), is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and Bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. As of July 29, 2023, the Company's operations and operating segments were conducted through Macy's, Market by Macy's, Macy's Backstage, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. A description of the Company's significant accounting policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2023 (the "2022 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2022 10-K. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company. Seasonality Because of the seasonal nature of the retail business, the results of operations for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022 (which do not include the holiday season) are not necessarily indicative of such results for the full fiscal year. Reclassifications Certain reclassifications were made to prior years' amounts to conform with the classifications of such amounts in the most recent years. Comprehensive Income Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income before income taxes in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Income. See Note 5, "Retirement Plans," for further information.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 29, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended July 29, 2023 July 30, 2022 Net Loss Shares Net Income Shares (millions, except per share data) Net income (loss) and average number of shares outstanding $ (22) 272.8 $ 275 270.1 Shares to be issued under deferred compensation and other plans 1.0 1.0 $ (22) 273.8 $ 275 271.1 Basic earnings (loss) per share $ (0.08) $ 1.01 Effect of dilutive securities: Stock options and restricted stock units — 6.3 $ (22) 273.8 $ 275 277.4 Diluted earnings (loss) per share $ (0.08) $ 0.99 26 Weeks Ended July 29, 2023 July 30, 2022 Net Income Shares Net Income Shares (millions, except per share data) Net income and average number of shares outstanding $ 133 272.5 $ 561 276.3 Shares to be issued under deferred compensation and other plans 1.0 1.0 $ 133 273.5 $ 561 277.3 Basic earnings per share $ 0.49 $ 2.02 Effect of dilutive securities: Stock options and restricted stock units 4.3 6.8 $ 133 277.8 $ 561 284.1 Diluted earnings per share $ 0.48 $ 1.97

Revenue

Revenue	6 Months Ended
	Jul. 29, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Net sales, which mainly consist of retail sales but also include merchandise returns, gift cards and loyalty programs, represented 97% and 96% of total revenue for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022, respectively. Other revenue generating activities consist of credit card revenues as well as Macy's Media Network revenue. 13 Weeks Ended 26 Weeks Ended Revenues July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 (millions) Women's Accessories, Shoes, Cosmetics and Fragrances $ 2,050 $ 2,099 $ 4,075 $ 4,189 Women's Apparel 1,110 1,267 2,260 2,549 Men's and Kids' 1,110 1,220 2,128 2,306 Home/Other (a) 860 1,014 1,649 1,904 Total Net Sales 5,130 5,600 $ 10,112 $ 10,948 Credit card revenues, net $ 120 $ 204 $ 282 $ 395 Macy's Media Network revenue, net (b) 30 30 59 56 Other Revenue 150 234 341 451 Total Revenue $ 5,280 $ 5,834 $ 10,453 $ 11,399 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. (b) Macy's Media Network ("MMN") is an in-house media platform supporting both Macy's and Bloomingdale's customers through a broad variety of advertising formats running both on owned and operated platforms as well as offsite. Macy's accounted for 85% of the Company's net sales for the 13 and 26 weeks ended July 29, 2023 and 86% for the 13 and 26 weeks ended July 30, 2022. In addition, digital sales accounted for 30% of the Company's net sales for both the 13 weeks ended July 29, 2023 and July 30, 2022, and 31% and 32% of the Company's net sales for the 26 weeks ended July 29, 2023 and July 30, 2022, respectively. Retail Sales Retail sales include merchandise sales, inclusive of delivery income, licensed department income, sales of private brand goods directly to third-party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at point of sale for in-store purchases or the time of shipment to the customer for digital purchases and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities. Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $148 million, $236 million and $186 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively. Included in prepaid expenses and other current assets is an asset totaling $94 million, $152 million and $112 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved, and revenue is recognized, equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s Star Rewards loyalty program, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. Bloomingdale’s Loyallist and Bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $340 million, $399 million and $386 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively. Credit Card Revenues In 2005, in connection with the sale of most of the Company's credit card accounts and related receivable balances to Citibank, the Company and Citibank entered into a long-term marketing and servicing alliance pursuant to the terms of a Credit Card Program Agreement ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, on December 13, 2021, the Company entered into the sixth amendment to the amended and restated Credit Card Program with Citibank (the "Program Agreement"). The changes to the Credit Card Program's financial structure are not materially different from its previous terms. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company's profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts, credit card funding costs and bad debt reserves and are a component of other revenue on the consolidated statements of income.

Financing Activities

Financing Activities	6 Months Ended
	Jul. 29, 2023
Debt Disclosure [Abstract]
Financing Activities	Financing Activities The Company did not borrow or repay any debt, outside of capital lease activity, during the 26 weeks ended July 29, 2023. In the 26 weeks ended July 30, 2022, the Company issued $425 million of 5.875% senior notes due 2030 and $425 million of 6.125% senior notes due 2032 in a private offering and repaid $1.1 billion aggregate principal amount of senior notes and debentures. As of July 29, 2023 and July 30, 2022, the Company had $138 million and $65 million of standby letters of credit outstanding under its revolving credit facility ("ABL Credit Facility"), respectively, which reduced the available borrowing capacity to $2,862 million and $2,935 million, respectively. The Company had no outstanding borrowings under the ABL Credit Facility as of July 29, 2023 and July 30, 2022. During the 26 weeks ended July 29, 2023, the Company repurchased approximately 1.4 million shares of its common stock pursuant to existing stock purchase authorizations for a total of approximately $25 million. As of July 29, 2023, the Company had $1,375 million of authorization remaining under its share repurchase program. The Company may continue or, from time to time, suspend repurchases of shares under its share repurchase program, depending on prevailing market conditions, alternate uses of capital and other factors.

Retirement Plans

Retirement Plans	6 Months Ended
	Jul. 29, 2023
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Retirement Plans	Retirement Plans The Company has defined contribution plans that cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans. In addition, certain retired employees currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible employees who were hired prior to a certain date and retire after a certain age with specified years of service. Certain employees are subject to having such benefits modified or terminated. The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 Weeks Ended 26 Weeks Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 (millions) 401(k) Qualified Defined Contribution Plan $ 21 $ 23 $ 44 $ 45 Pension Plan Interest cost $ 22 $ 15 44 29 Expected return on assets (34) (31) (68) (62) Recognition of net actuarial loss 1 4 3 8 $ (11) $ (12) $ (21) $ (25) Supplementary Retirement Plan Interest cost $ 6 $ 3 $ 11 $ 7 Recognition of net actuarial loss 2 3 4 6 $ 8 $ 6 $ 15 $ 13 Total Retirement Expense $ 18 $ 17 $ 38 $ 33 Postretirement Obligations Interest cost $ 1 $ 1 $ 2 $ 1 Recognition of net actuarial gain (1) (2) (3) (3) Amortization of prior service credit (1) — (1) — $ (1) $ (1) $ (2) $ (2) In connection with the Company's defined benefit plans, for the 13 and 26 weeks ended July 29, 2023, the Company incurred a non-cash settlement charge of $122 million. This charge relates to the pro-rata recognition of net actuarial losses associated with the Company's Pension Plan and is the result of the transfer of pension obligations for certain retirees and beneficiaries under the Pension Plan through the purchase of a group annuity contract with an insurance company.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Fair Value Measurements	Fair Value Measurements The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets July 29, 2023 July 30, 2022 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 39 $ 39 $ — $ — $ 34 $ 34 $ — $ — Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, certain short-term investments and other assets, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long-term debt. With the exception of long-term debt, the carrying amount of these financial instruments approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are generally estimated based on quoted market prices for identical or similar instruments, and are classified as Level 2 measurements within the hierarchy as defined by applicable accounting standards. The following table shows the estimated fair value of the Company's long-term debt: July 29, 2023 July 30, 2022 Notional Carrying Fair Notional Carrying Fair (millions) Long-term debt $ 3,007 $ 2,997 $ 2,482 $ 3,007 $ 2,995 $ 2,506 Nonfinancial Assets The Company reviews the carrying amount of goodwill and intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. For the Company's annual impairment assessment as of the end of fiscal May 2023, the Company elected to perform a qualitative impairment test on its goodwill and intangible assets with indefinite lives and concluded that it is more likely than not that the fair values exceeded the carrying values and therefore goodwill and intangible assets with indefinite lives were not impaired.

Supplier Finance Programs

Supplier Finance Programs	6 Months Ended
	Jul. 29, 2023
Payables and Accruals [Abstract]
Supplier Finance Programs	Supplier Finance Programs The Company has agreements with third-party financial institutions to facilitate supply chain finance ("SCF") programs. The programs allow qualifying suppliers to sell their receivables, on an invoice level at the selection of the supplier, from the Company to the financial institution and negotiate their outstanding receivable arrangements and associated fees directly with the financial institution. Macy's, Inc. is not party to the agreements between the supplier and the financial institution. The supplier invoices that have been confirmed as valid under the SCF programs require payment in full by the financial institution to the supplier by the original maturity date of the invoice, or discounted payment at an earlier date as agreed upon with the supplier. The Company's obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier’s participation in the SCF programs. All outstanding amounts related to suppliers participating in the SCF programs are recorded upon confirmation with the third-party institutions in merchandise accounts payable July 29, 2023, January 28, 2023 and July 30, 2022 were $144 million, $63 million and $149 million, respectively.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Pay vs Performance Disclosure
Net income (loss) and average number of shares outstanding	$ (22)	$ 275	$ 133	$ 561

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jul. 29, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company.
Seasonality	Seasonality Because of the seasonal nature of the retail business, the results of operations for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022 (which do not include the holiday season) are not necessarily indicative of such results for the full fiscal year.
Reclassifications	Reclassifications Certain reclassifications were made to prior years' amounts to conform with the classifications of such amounts in the most recent years.
Comprehensive Income	Comprehensive IncomeTotal comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 and 26 weeks ended July 29, 2023 and July 30, 2022 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income before income taxes in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Income.
Recent Accounting Pronouncements	Recent Accounting PronouncementsIn September 2022, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations (ASU 2022-04), which requires entities to disclose the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period and an annual rollforward of such obligations. ASU 2022-04 became effective for the Company beginning in 2023. The Company adopted ASU 2022-04 in the first quarter of 2023, with the exception of the rollforward information, which will be reflected in the fourth quarter, and the adoption did not have a material impact on the consolidated financial statements.
Revenue	Retail Sales Retail sales include merchandise sales, inclusive of delivery income, licensed department income, sales of private brand goods directly to third-party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at point of sale for in-store purchases or the time of shipment to the customer for digital purchases and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities. Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $148 million, $236 million and $186 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively. Included in prepaid expenses and other current assets is an asset totaling $94 million, $152 million and $112 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved, and revenue is recognized, equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s Star Rewards loyalty program, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. Bloomingdale’s Loyallist and Bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $340 million, $399 million and $386 million as of July 29, 2023, January 28, 2023 and July 30, 2022, respectively. Credit Card Revenues In 2005, in connection with the sale of most of the Company's credit card accounts and related receivable balances to Citibank, the Company and Citibank entered into a long-term marketing and servicing alliance pursuant to the terms of a Credit Card Program Agreement ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, on December 13, 2021, the Company entered into the sixth amendment to the amended and restated Credit Card Program with Citibank (the "Program Agreement"). The changes to the Credit Card Program's financial structure are not materially different from its previous terms. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company's profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts, credit card funding costs and bad debt reserves and are a component of other revenue on the consolidated statements of income.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 29, 2023
Earnings Per Share [Abstract]
Summary of Computation of Basic and Diluted Earnings (loss) Per Share	The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended July 29, 2023 July 30, 2022 Net Loss Shares Net Income Shares (millions, except per share data) Net income (loss) and average number of shares outstanding $ (22) 272.8 $ 275 270.1 Shares to be issued under deferred compensation and other plans 1.0 1.0 $ (22) 273.8 $ 275 271.1 Basic earnings (loss) per share $ (0.08) $ 1.01 Effect of dilutive securities: Stock options and restricted stock units — 6.3 $ (22) 273.8 $ 275 277.4 Diluted earnings (loss) per share $ (0.08) $ 0.99 26 Weeks Ended July 29, 2023 July 30, 2022 Net Income Shares Net Income Shares (millions, except per share data) Net income and average number of shares outstanding $ 133 272.5 $ 561 276.3 Shares to be issued under deferred compensation and other plans 1.0 1.0 $ 133 273.5 $ 561 277.3 Basic earnings per share $ 0.49 $ 2.02 Effect of dilutive securities: Stock options and restricted stock units 4.3 6.8 $ 133 277.8 $ 561 284.1 Diluted earnings per share $ 0.48 $ 1.97

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 29, 2023
Revenue from Contract with Customer [Abstract]
Summary of Sales From Merchandise Category	Other revenue generating activities consist of credit card revenues as well as Macy's Media Network revenue. 13 Weeks Ended 26 Weeks Ended Revenues July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 (millions) Women's Accessories, Shoes, Cosmetics and Fragrances $ 2,050 $ 2,099 $ 4,075 $ 4,189 Women's Apparel 1,110 1,267 2,260 2,549 Men's and Kids' 1,110 1,220 2,128 2,306 Home/Other (a) 860 1,014 1,649 1,904 Total Net Sales 5,130 5,600 $ 10,112 $ 10,948 Credit card revenues, net $ 120 $ 204 $ 282 $ 395 Macy's Media Network revenue, net (b) 30 30 59 56 Other Revenue 150 234 341 451 Total Revenue $ 5,280 $ 5,834 $ 10,453 $ 11,399 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards.

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jul. 29, 2023
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Schedule of Costs of Retirement Plans	The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 Weeks Ended 26 Weeks Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 (millions) 401(k) Qualified Defined Contribution Plan $ 21 $ 23 $ 44 $ 45 Pension Plan Interest cost $ 22 $ 15 44 29 Expected return on assets (34) (31) (68) (62) Recognition of net actuarial loss 1 4 3 8 $ (11) $ (12) $ (21) $ (25) Supplementary Retirement Plan Interest cost $ 6 $ 3 $ 11 $ 7 Recognition of net actuarial loss 2 3 4 6 $ 8 $ 6 $ 15 $ 13 Total Retirement Expense $ 18 $ 17 $ 38 $ 33 Postretirement Obligations Interest cost $ 1 $ 1 $ 2 $ 1 Recognition of net actuarial gain (1) (2) (3) (3) Amortization of prior service credit (1) — (1) — $ (1) $ (1) $ (2) $ (2)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Summary of Fair Value of Plan Assets Measured on a Recurring Basis	The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets July 29, 2023 July 30, 2022 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 39 $ 39 $ — $ — $ 34 $ 34 $ — $ —
Summary of Estimated Fair Values of Company's Long Term Debt	The following table shows the estimated fair value of the Company's long-term debt: July 29, 2023 July 30, 2022 Notional Carrying Fair Notional Carrying Fair (millions) Long-term debt $ 3,007 $ 2,997 $ 2,482 $ 3,007 $ 2,995 $ 2,506

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies - Narrative (Details)	Jul. 29, 2023 state
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which entity operates	43

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings (loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Earnings Per Share [Abstract]
Net income (loss) and average number of shares outstanding	$ (22)	$ 275	$ 133	$ 561
Net income (loss) available to common stockholders, basic	$ (22)	$ 275	$ 133	$ 561
Basic earnings (loss) per share (in dollars per share)	$ (0.08)	$ 1.01	$ 0.49	$ 2.02
Weighted average number of shares issued, basic (in shares)	272.8	270.1	272.5	276.3
Shares to be issued under deferred compensation and other plans (in shares)	1	1	1	1
Average number of shares outstanding, basic (in shares)	273.8	271.1	273.5	277.3
Effect of dilutive securities:
Net income (loss) available to common stockholders, diluted	$ (22)	$ 275	$ 133	$ 561
Diluted earnings (loss) per share (in dollars per share)	$ (0.08)	$ 0.99	$ 0.48	$ 1.97
Stock options and restricted stock units (in shares)	0	6.3	4.3	6.8
Average number of shares outstanding, diluted (in shares)	273.8	277.4	277.8	284.1

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended	6 Months Ended
	Jul. 29, 2023	Jul. 29, 2023	Jul. 30, 2022
Employee Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings (in shares)	9.9	9.9	12.2
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings (in shares)	10	1.7	2.3

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022	Jan. 28, 2023
Disaggregation of Revenue [Line Items]
Percentage of net sales revenue	97%	96%	97%	96%
Macy's sales to total company sales percentage	85%	86%	85%	86%
Percentage of digital sales	30%	30%	31%	32%
Contract with customer, refund liability	$ 148	$ 186	$ 148	$ 186	$ 236
Contract with customer, right to recover product	94	112	94	112	152
Contract with customer, liability, current	$ 340	$ 386	$ 340	$ 386	$ 399
Credit Card Intermediary
Disaggregation of Revenue [Line Items]
Agreement renewal option number of years			3 years

Revenue - Sales From Merchandis

Revenue - Sales From Merchandise Category (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 5,130	$ 5,600	$ 10,112	$ 10,948
Other Revenue	150	234	341	451
Total revenue	5,280	5,834	10,453	11,399
Women's Accessories, Shoes, Cosmetics and Fragrances
Disaggregation of Revenue [Line Items]
Net sales	2,050	2,099	4,075	4,189
Women's Apparel
Disaggregation of Revenue [Line Items]
Net sales	1,110	1,267	2,260	2,549
Men's and Kids'
Disaggregation of Revenue [Line Items]
Net sales	1,110	1,220	2,128	2,306
Home/Other
Disaggregation of Revenue [Line Items]
Net sales	860	1,014	1,649	1,904
Credit card revenues, net
Disaggregation of Revenue [Line Items]
Other Revenue	120	204	282	395
Macy's Media Network revenue, net
Disaggregation of Revenue [Line Items]
Other Revenue	$ 30	$ 30	$ 59	$ 56

Financing Activities - Narrativ

Financing Activities - Narrative (Details) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Debt Instrument [Line Items]
Debt issued	$ 0	$ 850
Repayments of debt		1,100
Number of shares repurchased	1.4
Shares repurchased, value	$ 25
Stock repurchase program, remaining authorized repurchase amount	1,375
Revolving A B L Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit outstanding	138	65
Line of credit facility, remaining borrowing capacity	2,862	2,935
Amount outstanding under credit facility	$ 0	0
Senior Notes | 5.875% Senior Notes due 2030
Debt Instrument [Line Items]
Debt issued		$ 425
Debt instrument interest rate, stated percentage		5.875%
Senior Notes | 6.125% Senior Notes due 2032
Debt Instrument [Line Items]
Debt issued		$ 425
Debt instrument interest rate, stated percentage		6.125%

Retirement Plans - Narrative (D

Retirement Plans - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023 USD ($)	Jul. 30, 2022 USD ($)	Jul. 29, 2023 USD ($) hour	Jul. 30, 2022 USD ($)
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Number of hours required for participation in defined benefit and defined contribution plans | hour			1,000
Settlement charges | $	$ (122)	$ 0	$ (122)	$ 0

Retirement Plans - Net Periodic

Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Total Retirement Expense	$ 18	$ 17	$ 38	$ 33
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
401(k) Qualified Defined Contribution Plan	21	23	44	45
Interest cost	1	1	2	1
Recognition of net actuarial loss	(1)	(2)	(3)	(3)
Amortization of prior service credit	(1)	0	(1)	0
Total net periodic benefit cost	(1)	(1)	(2)	(2)
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Interest cost	22	15	44	29
Expected return on assets	(34)	(31)	(68)	(62)
Recognition of net actuarial loss	1	4	3	8
Total net periodic benefit cost	(11)	(12)	(21)	(25)
Supplementary Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Interest cost	6	3	11	7
Recognition of net actuarial loss	2	3	4	6
Total net periodic benefit cost	$ 8	$ 6	$ 15	$ 13

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets Measured At Fair Value On A Recurring and Nonrecurring Basis (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jul. 30, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable equity and debt securities	$ 39	$ 34
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable equity and debt securities	39	34
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable equity and debt securities	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable equity and debt securities	$ 0	$ 0

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Value Of Company Long Term Debt (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jul. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Notional Amount	$ 3,007	$ 3,007
Carrying Amount	2,997	2,995
Fair Value	$ 2,482	$ 2,506

Supplier Finance Programs - Nar

Supplier Finance Programs - Narrative (Details) - USD ($) $ in Millions	Jul. 29, 2023	Jan. 28, 2023	Jul. 30, 2022
Payables and Accruals [Abstract]
Supplier finance program, confirmed obligation	$ 144	$ 63	$ 149
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration]	Merchandise accounts payable	Merchandise accounts payable	Merchandise accounts payable