Slides
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September 3, 2025 2Q25 Earnings Kenneth Cole @ Macy’s
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All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s, Inc. management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including Macy’s, Inc.’s ability to successfully implement its Bold New Chapter strategy, including the ability to realize the anticipated benefits associated with the strategy, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, conditions to, or changes in the timing of proposed real estate and other transactions, declines in credit card revenues, possible systems failures and/or security breaches, Macy’s, Inc.’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, regional political and economic conditions, the effect of trade policies and tariffs, including changes thereto, the effect of weather, inflation, inventory shortage, and labor shortages, the potential for the incurrence of charges in connection with the impairment of tangible and intangible assets, including goodwill, the amount and timing of future dividends and share repurchases, our ability to execute on our strategies and achieve expectations related to environmental, social, and governance matters, and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Reporton Form 10-K for the year ended February 1, 2025. Macy’s, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. This presentation includes non-GAAP financial measures that exclude the impact of certain financial statement items. Additional important information regarding these non-GAAP financial measures as well as others used in the earnings release can be found on the Investors section of our website and in the appendix of this presentation. Safe Harbor Statement 2Safe Harbor Statement
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The Men’s Store @ Bloomingdale’s 3 +1.9% Comparable Owned-Plus- Licensed-Plus-Marketplace (O+L+M) Sales vs. 2Q24 2Q25 Macy’s, Inc. Performance Highlights $0.41 Adjusted Diluted Earnings Per Share (EPS) • Top-line, bottom-line, core Adj. EBITDA exceeded guidance • Macy’s, Inc. and Macy’s nameplate delivered strongest comparable sales results in 12 quarters • Macy’s Go-Forward business comparable sales were positive, inclusive of growth in the Reimagine 125 locations and digital • Bloomingdale’s achieved 4th consecutive quarter of comparable sales growth • Bluemercury achieved 18th consecutive quarter of comparable sales growth 2Q25 Highlights
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4 Strengthen & Reimagine Macy’s Nameplate Strengthen Macy’s Nameplate2Q25 Highlights • Best second quarter Net Promoter Score on record • Reimagine 125 locations comparable O+L+M sales +1.4% • Comparable sales growth in the First 50 and Next 75 locations • Creating a more focused and profitable store base • Positioned to deliver long-term growth through: • Exceptional customer omni-channel experiences; • Improved selling; • Enhanced colleague development; and • Inspired merchandising Comparable O+L+M Sales vs. 2Q24 Macy’s Go-Forward Business1 Comparable O+L+M Sales vs. 2Q24 +1.5%+1.2% 2Q25 Adidas @ Macy’s 1 Go-Forward Macy’s business includes all Macy’s Go-Forward Locations and Digital.
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5 Accelerate & Differentiate Bloomingdale’s +5.7% Comparable O+L+M Sales vs. 2Q24 Consecutive quarter of comparable O+L+M sales growth 4th 2Q25 2Q25 HighlightsSteve Madden @ Bloomingdale’s • Strength in ready-to-wear, fine jewelry, fragrance and tabletop • Special capsules / exclusive partnerships build brand heat • Takeovers by contemporary brands MOTHER and STAUD • AQUA collaboration with Ava Phillippe • Launching "Just Imagine" Fall campaign, celebrating creativity, art and style • Remain focused on growth through: new brands and partnerships; expanding distribution; growing digital; and increasing the national footprint
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6 Accelerate & Differentiate Bluemercury +1.2% Comparable Owned Sales vs. 2Q24 18th Consecutive quarter of comparable owned sales growth • Results driven by dermatological skincare and recent brand launches including Byredo, Victoria Beckham Beauty and Charlotte Tilbury • Curated assortments and agnostic selling are strong differentiators 2Q25 2Q25 Highlights Byredo, Diptyque, Vilhelm fragrances @ Bluemercury
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7 Simplify & Modernize End-to-End Operations -0.8% Inventory vs. 2Q24 Speed of delivery1 vs. 2Q24 +270bps • Always-on approach to profit improvement • Finding efficiencies through automation, resource optimization and streamlining of processes • Supports ability to invest in growth ambitions, while delivering an improved return for shareholders 2Q25 2Q25 HighlightsMacy’s, Inc. China Grove Facility 1 Percent of orders delivered in five days or less.
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A Bold New Chapter 8 Challenging the status quo to fundamentally reposition the company, enhance the customer experience, deliver growth and unlock shareholder value. A Bold New Chapter Simplify & Modernize End-to-End Operations Strengthen & Reimagine Macy’s Nameplate Accelerate & Differentiate Luxury Ralph Lauren @ Macy’s Johanna Ortiz @ Bloomingdale’s Macy’s, Inc. China Grove Facility
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9 2Q25 Financial Results & Capital Allocation Theory @ Bloomingdale’s
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10 $4.8B Net sales1 -2.5% vs 2Q24; +0.9% vs. 2Q24 excluding the impact of store closures +1.9% Comparable O+L+M Sales vs. 2Q24 Comparable Owned Sales vs. 2Q24 2Q25 Financial Results & Capital Allocation Sales Highlights +2.2% Go-forward Business2 Comparable O+L+M Sales vs. 2Q24 Note: 2Q25 digital penetration of net sales: 31%; owned comparable average unit retail (AUR): +1.3% vs. 2Q24. 1 Reflects the impact of FY24 store closures, primarily Macy’s nameplate locations, which contributed approximately $170 millio n in 2Q24. 2 Defined as Macy’s, Bloomingdale’s and Bluemercury Go-Forward locations and digital. 2Q25 Financial Results & Capital Allocation +0.8% Tissot @ Macy’s
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Net Sales Comparable Owned Sales Net Sales1 Comparable O+L+M Sales Go-Forward Macy’s Business Comparable O+L+M Sales2 -3.8% +1.2% 11 2Q25 Financial Results & Capital Allocation Nameplate Highlights Results versus 2Q24 1 Reflects the impact of FY24 store closures, primarily Macy’s nameplate locations, which contributed approximately $170 million in 2Q24. 2 Go-Forward Macy’s business includes all Macy’s Go-Forward Locations and Digital. Net Sales Comparable O+L+M Sales +4.6% +5.7% +3.3% +1.2% +1.5% 2Q25 Financial Results & Capital AllocationSteve Madden @ Bloomingdale’s
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NOTE: In millions, except per share figures & percentages. 1 % of net sales 2 % of total revenue. Actuals Change vs. 2Q24 Other Revenue $187 +17.6% Credit Card Revenue $153 +22.4% Macy’s Media Network $34 Flat Total Revenue $4,999 -1.9% Gross Margin $1,912 -4.4% Gross Margin Rate1 39.7% -80 bps SG&A Expense $1,944 -1.5% SG&A Expense Rate2 38.9% +20 bps Adjusted EBITDA $393 -10.3% Adjusted EBITDA Margin Rate2 7.9% -70 bps Core Adjusted EBITDA $377 -6.2% Core Adjusted EBITDA Margin Rate2 7.5% -40 bps Diluted EPS $0.31 -41.5% Adjusted Diluted EPS $0.41 -22.6% Inventory $4,342 -0.8% 2Q25 Financial Results & Capital Allocation Profitability & Productivity Highlights 12 2Q25 Financial Results & Capital Allocation Tommy Hilfiger @ Macy’s
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1 Reflects $194M of redeemed debt that did not settle until August 28, 2025. $100M Dividend Payments Share Repurchases $151M 13 2Q25 Financial Results and Capital Allocation YTD Capital Allocation Highlights 2Q25 Financial Results & Capital AllocationJimmy Choo @ Bloomingdale’s Consistent Capital Allocation Priorities • Maintain a healthy balance sheet and drive working capital efficiencies • Strategically invest in growth while lowering capex • Shareholder returns via dividends and share buybacks Recent Financing Transactions Fortify Balance Sheet: • Completed transactions resulting in a net long-term debt reduction of ~$340M1, which extended material debt maturities by three years to 2030 and modestly reduced leverage
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Looking Ahead Balmain @ Bloomingdale’s
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7.0% to 7.5% Core Adjusted EBITDA Rate2,3 15 FY25 Guidance NOTE: Full Guidance Details can be found in the additional information section of this presentation. 1 Defined as Macy’s, Bloomingdale’s and Bluemercury Go-Forward locations and digital. 2 Defined as Adjusted EBITDA excluding asset sale gains (i.e. gains on sale of real estate). 3% of total revenue. 4 The impact of any potential future share repurchase associated with the company’s current share repurchase authorization is e xcluded. $21.15B to $21.45B Net Sales -1.5% to -0.5% vs. FY24 Comparable O+L+M Sales -1.5% to ~Flat vs. FY24 Go-Forward1 Business Comparable O+L+M Sales 7.4% to 7.9% Adjusted EBITDA Rate3 $1.70 to $2.05 Adjusted Diluted EPS4 Looking Ahead Go-Forward Business1 Comparable O+L+M sales and Core Adjusted EBITDA2 are the best proxy for the company’s future state The company is providing the following estimates for certain FY25 financial statement items, as of September 3, 2025 For more information, refer to the appendix section of this presentation
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16 $4.5B to $4.6B Net Sales -1.5% to +0.5% Comparable O+L+M Sales 3.3% to 3.7% Core Adjusted EBITDA Rate1,2 Looking Ahead 1 Defined as Adjusted EBITDA excluding asset sale gains. 2 % of total revenue. 3The impact of any potential future share repurchase associated with the company’s current share repurchase authorization is e xcluded. 3Q25 Guidance The company is providing the following estimates for certain 3Q25 financial statement items, as of September 3, 2025 For more information, refer to the appendix section of this presentation Adjusted Diluted EPS3 -$0.20 to -$0.15
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Q&A Coach @ Macy’s
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Appendix Polo Ralph Lauren @ Macy’s
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19 Appendix Store Count as of 8/2/2025 Appendix End of 2Q25 Change In Locations from FY24 Locations Macy's Department Stores 390 — Macy's Small Format 20 — Macy's Furniture 33 -1 Macy's Furniture Clearance 1 — Freestanding Backstage1 5 — Total Macy's 449 -1 Bloomingdale's Department Stores 31 — Bloomies 4 — Bloomingdale's Furniture/Other 1 — Bloomingdale's The Outlet 23 — Total Bloomingdale's 59 — Bluemercury 173 +2 Total Macy's, Inc. 681 +1 NOTE: Using store locations combines multi-box stores into a single location provides a more accurate count of the store fleet. Excluded in the count above is 292 Macy’s Store Within Store Backstage locations located within Macy’s stores. 1Includes two Macy's Backstage locations that were announced for closure in January 2025. However, locations will remain in th e store count listing until official closure occurs at a later date.
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20 Appendix AppendixNote: % represents weighted average interest rate. All outstanding long -term debt is unsecured. $194 million due in 2025 was set tled on August 28, 2025. Long-term Debt Maturities as of 8/2/2025
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21 Appendix Appendix 1 Go-Forward Macy’s locations inclusive of Reimagine 125 and other Macy's Go -Forward Locations. Change vs. 2Q24 Go-Forward Macy’s Locations Comparable O+L Sales1 +0.1% Reimagine 125 Locations Comparable O+L Sales +1.4% Non-Go-Forward Macy’s Locations Comparable O+L Sales -6.4% 2Q25 Macy’s Locations Sales Highlights
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22 Additional Information 1H25 Financial Highlights Additional Information Actuals Change vs 1H24 SG&A Expense $3,856 -0.7% SG&A Expense Rate3 39.4% +90 bps Adjusted EBITDA $717 -10.6% Adjusted EBITDA Margin Rate3 7.3% -60 bps Core Adjusted EBITDA $685 -10.5% Core Adjusted EBITDA Margin Rate3 7.0% -60 bps Diluted EPS $0.44 -41.3% Adjusted Diluted EPS $0.57 -28.8% Actuals Change vs 1H24 Net Sales $9,411 -3.8% Comparable owned sales -0.6% Comparable O+L+M sales +0.3% Go-forward Business1 Comparable O+L+M Sales +0.6% Other Revenue $380 +21.4% Credit card revenues, net $306 +26.4% Macy’s Media Network revenues, net $74 +4.2% Gross Margin $3,716 -4.7% Gross Margin Rate2 39.5% -40 bps 1 Defined as Macy’s, Bloomingdale’s and Bluemercury Go-Forward locations and digital. 2% of net sales. 3 % of total revenue.
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23 Appendix Appendix The company is providing the following estimates for certain FY25 financial statement items. Refer to the following guidance assumptions slide for more details. 1 % of net sales. 2 % of total revenue. 3 Defined as Adjusted EBITDA excluding asset sale gains. 4 The impact of any potential future share repurchase associated with the company’s current share repurchase authorization is e xcluded. As of 9/3/2025 (bold captions indicate a change) As of 5/28/2025 Net sales $21.15 billion to $21.45 billion $21.0 billion to $21.4 billion Comparable O+L+M sales Down ~1.5% to down ~0.5% vs. FY24 Down ~2.0% to down ~0.5% vs. FY24 Go-Forward business comparable O+L+M sales Down ~1.5% to ~flat vs. FY24 Down ~2.0% to ~flat vs. FY24 Other revenues $840 million to $850 million (credit card revenues expected to be $635 million to $645 million) $815 million to $825 million (credit card revenues expected to be $620 million to $630 million) Gross margin rate1 Down ~60 to ~100 bps vs. FY24 Down ~30 to ~70 bps vs. FY24 SG&A expense rate2 Up ~60 to ~80 bps vs. FY24 Up ~80 to ~110 bps vs. FY24 Asset sale gains/Monetization proceeds $90 million/$175 million $90 million/$175 million Adjusted EBITDA margin rate2 7.4% to 7.9% 7.4% to 7.9% Core Adjusted EBITDA margin rate2,3 7.0% to 7.5% 7.0% to 7.5% Interest expense, net $100 million $115 million Adjusted tax rate 24.5% 24.5% Diluted shares outstanding4 276 million 279 million Adjusted diluted EPS4 $1.70 to $2.05 $1.60 to $2.00 Capital expenditures ~$800 million ~$800 million FY25 Guidance as of 9/3/2025
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General Considerations • Given uncertainty regarding the tariff impact on consumer health and demand, the company continues to believe the consumer wi ll be more choiceful in the back half of the year relative to the first half. • Macy's, Inc. 3Q25 and FY25 guidance assumes that the Bold New Chapter initiatives continue to gain traction; current tariffs remain in place; the company reinvests most of the savings from closed stores and distribution centers to support long -term growth; and provides flexibility to respond to consumer demand and the competitive landscape. • At the end of FY24, ~20% of total Macy’s, Inc. product originated in China. National brands, which represents the majority of sales, sourced ~18% from China. Private brands, where have more direct control of the supply chain, sourced ~27% from China, down from 32% in FY2 4 and +50% pre- pandemic. • Based on the assumption that current tariffs remain in place and that the company is able to mitigate a meaningful portion, although not all, of the increased costs, the company estimates a ~40 bps to ~60 bps impact to Macy's, Inc. FY25 gross margin or a ~$0.25 to ~$0.40 im pact to annual EPS. This compares to prior expectation for a ~20 to ~40 bps impact and a ~$0.10 to ~$0.25 impact to annual EPS. • This estimate incorporates inventory previously bought under the 145% China tariffs, which primarily effected the second quar ter, and inventory bought more recently. It also incorporates shared cost negotiations, vendor discounts and strategically raising tickets. • Given the anticipated timing of receipts, the company expects the additional impact to its FY25 gross margin rate and EPS to primarily flow through the fourth quarter. • In addition to the estimated tariff impact, gross margin guidance reflects planned actions to strategically capture customer share of wallet and flexibility to respond to consumer demand and the competitive landscape. • In FY25, the company expects digital penetration to be slightly over a third of net sales and depreciation & amortization to be ~$910 million. • In FY25, the company anniversaries the conversion to cost accounting. Comparable Sales • The company expects Macy's Reimagine 125 location and digital performance to be offset by the go -forward Macy’s locations that have not yet received initiatives and the stores the company has planned for closure in 2025 and beyond. 24 Appendix Appendix FY25 Guidance Assumptions as of 9/3/2025
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FY24 Store Closure Impacts • Store closures contributed ~$700 million of net sales in FY24, equating to ~$170 million in 1Q24, ~$170 million in 2Q24, ~$16 0 million in 3Q24 and $200 million in 4Q24. Credit Card Revenue • FY25 credit card revenue reflects the stabilization of net credit losses and a strong credit portfolio, supported by initiati ves designed to increase credit card usage. Cost Savings • All future savings the company anticipates to achieve are contemplated within its guidance. 25 Appendix Appendix FY25 Guidance Assumptions as of 9/3/2025
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Reconciliation of GAAP to Non-GAAP Financial Measures Levi’s @ Macy’s
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Reconciliation of GAAP to Non-GAAP Financial Measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non- GAAP financial measures provide users of the company's financial information with additional useful information in evaluatingoperating performance. Management believes that providing supplemental changes in comparable sales on an owned-plus-licensed-plus-marketplace basis, which includes adjusting for the impact of comparable sales of departments licensed to third parties and marketplace sales, assists in evaluating the company's ability to generate sales growth, whether through owned businesses, departments licensed to third parties or marketplace sales, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income and diluted earnings per share that are not associated with the company’s core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company's ability to generate earnings and to more readily compare these metrics between past and future periods. Management also believes free cash flow provides a better indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investmentopportunities. Unlike cash flow provided by operating activities, free cash flow includes the impact of capital expenditures and proceeds from the disposition of property and equipment, providing a more complete picture of cash generation. Free cash flow has certain limitations, including that it does not reflect adjustment for certain non-discretionary cash flows such as mandatory debt repayments. The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable owned-plus-licensed-plus-marketplace sales change, Adjusted EBITDA, Core Adjusted EBITDA and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and futurefinancial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties and marketplace sales are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. Appendix 27
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Changes in Comparable Sales 13 weeks ended August 2, 2025 Macy's, Inc. Macy's Increase in comparable sales on an owned basis (Note 1) 0.8% 0.4% Impact of departments licensed to third parties and marketplace sales (Note 2) 1.1% 0.8% Increase in comparable sales on an owned-plus-licensed-plus-marketplace basis 1.9% 1.2% Notes: 1. Represents the period-to-period percentage change in net sales from stores in operation for one full fiscal year for the 13 and 26 weeks ended August 2, 2025 and August 3, 2024. Such calculation includes all digital sales and excludes commissions from departments licensed to third parties and marketplace. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. Definitions and calculations of comparable sales may differ among companies in the retail industry. 2. Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales, including marketplace sales, in the calculation of comparable sales.Macy’s and Bloomingdale’s license third parties to operate certain departments in its stores and online and receive commissions from these third parties based on a percentage of their net sales, while Bluemercury does not participate in licensed or marketplace businesses. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties and marketplace) in its net sales. The company does not, however, include any amounts in respect of licensed department or marketplace sales (or any commissions earned on such sales) in its comparable sales in accordance with GAAP (i.e., on an owned basis). The amounts of commissions earned on sales of departments licensed to third parties and from the digital marketplace are not material to its net sales for the periods presented. Appendix 28
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1 Licensed and marketplace reflects licensed strength in handbags / small leather goods and contemporary apparel, as well as str ong digital performance. Changes in Comparable Sales 13 weeks ended August 2, 2025 Macy's, Inc. Go- Forward business Macy's Go-Forward business Bloomingdale's1 Bluemercury Increase in comparable sales on an owned basis (Note 1) 1.1% 0.7% 3.6% 1.2% Impact of departments licensed to third parties and marketplace sales (Note 2) 1.1% 0.8% 2.1% —% Increase in comparable sales on an owned-plus- licensed-plus-marketplace basis 2.2 % 1.5 % 5.7 % 1.2 % Appendix 13 weeks ended August 2, 2025 Macy's Reimagine 125 locations Macy's Go-Forward locations Macy's Non-Go-Forward locations Increase (decrease) in comparable sales on an owned basis (Note 1) 1.1% (0.1%) (6.5%) Impact of departments licensed to third parties (Note 2) 0.3% 0.2% 0.1% Increase (decrease) in comparable sales on an owned-plus-licensed basis 1.4 % 0.1 % (6.4)% 29
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Changes in Comparable Sales 26 weeks ended August 2, 2025 Macy's, Inc. Macy's, Inc. Go-Forward business Decrease in comparable sales on an owned basis (Note 1) (0.6)% (0.4%) Impact of departments licensed to third parties and marketplace sales (Note 2) 0.9% 1.0% Increase in comparable sales on an owned-plus-licensed-plus-marketplace basis 0.3% 0.6% Appendix 30
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Millions, except percentages 13 weeks ended August 2, 2025 13 weeks ended August 3, 2024 Most comparable GAAP measure: Total revenue $4,999 $5,096 Net income $87 $150 Net income as a percent to total revenue 1.7% 2.9% Non-GAAP measure: Net income $87 $150 Interest expense, net 25 31 Loss on extinguishment of debt 13 — Federal, state and local income tax expense 28 45 Depreciation and amortization 218 213 Earnings before interest, taxes, depreciation and amortization (EBITDA) $371 $439 Impairment, restructuring and other costs (benefits) 22 (1) Adjusted EBITDA $393 $438 Adjusted EBITDA as a percent to total revenue 7.9% 8.6% Gains on sale of Real Estate (16) (36) Core Adjusted EBITDA $377 $402 Core Adjusted EBITDA as a percent to total revenue 7.5% 7.9% Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Appendix 31
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Millions, except percentages 26 weeks ended August 2, 2025 26 weeks ended August 3, 2024 Most comparable GAAP measure: Total revenue $9,791 $10,096 Net income $124 $212 Net income as a percent to total revenue 1.3% 2.1% Non-GAAP measure: Net income $124 $212 Interest expense, net 51 62 Loss on extinguishment of debt 17 — Federal, state and local income tax expense 58 80 Depreciation and amortization 437 429 Earnings before interest, taxes, depreciation and amortization (EBITDA) $687 $783 Impairment, restructuring and other costs 30 19 Adjusted EBITDA $717 $802 Adjusted EBITDA as a percent to total revenue 7.3% 7.9% Gains on sale of Real Estate (32) (37) Core Adjusted EBITDA $685 $765 Core Adjusted EBITDA as a percent to total revenue 7.0% 7.6% Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Appendix 32
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Net Income and Diluted Earnings Per Share, Excluding Certain Items Millions, except per share figures 13 weeks ended August 2, 2025 13 weeks ended August 3, 2024 Net Income Diluted Earnings Per Share Net Income Diluted Earnings Per Share As reported $87 $0.31 $150 $0.53 Impairment, restructuring and other costs (benefits) 22 0.08 (1) — Loss on extinguishment of debt 13 0.05 — — Income tax impact of certain items identified above (9) (0.03) — — As adjusted to exclude certain items above $113 $0.41 $149 $0.53 Appendix 33 Millions, except per share figures 26 weeks ended August 2, 2025 26 weeks ended August 3, 2024 Net Income Diluted Earnings Per Share Net Income Diluted Earnings Per Share As reported $124 $0.44 $212 $0.75 Impairment, restructuring and other costs 30 0.11 19 0.07 Loss on extinguishment of debt 17 0.06 — — Income tax impact of certain items identified above (12) (0.04) (5) (0.02) As adjusted to exclude certain items above $159 $0.57 $226 $0.80
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1 Net cash provided by operating activities reflects cash tax payment benefits related to: the timing of said payments ; and benefits from the One Big Beautiful Bill Act (OBBBA), which was enacted on July 4, 2025. Additionally, the provisions of the OBBBA are not expected to have a material impact to the company’s estimated fiscal year 2025 effective tax rate. Millions 26 weeks ended August 2, 2025 Net cash provided by operating activities1 $255 Purchase of property and equipment (179) Capitalized software (164) Proceeds from disposition of assets, net 75 Free Cash Flow $(13) Free Cash Flow Appendix 34