Macy’s, Inc. Same-Store Sales Down 13.3% in November, Including Anticipated Negative Impact of Calendar Shift

CINCINNATI--(BUSINESS WIRE)--Macy’s, Inc. (NYSE:M) today reported total sales of $2.327 billion for the four weeks ended Nov. 29, 2008, a decrease of 14.1 percent compared to total sales of $2.707 billion in the four weeks ended Dec. 1, 2007. On a same-store basis, Macy’s, Inc. sales were down 13.3 percent in November, consistent with previous guidance that anticipated the negative impact of a significant shift in the retail calendar coupled with the weak economic environment.

For the year to date, Macy’s, Inc. sales totaled $19.285 billion, down 5.6 percent from total sales of $20.426 billion in the first 43 weeks of 2007. On a same-store basis, Macy’s, Inc.’s year-to-date sales were down 4.8 percent.

“November ended with a strong Thanksgiving weekend, including the largest Black Friday in the history of our company,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer. “We are cautiously optimistic that our combination of unique assortments, great brands and sharp values will attract customers through the balance of the holiday shopping season as they did over Black Friday weekend. These are extraordinary times and I am proud of how our outstanding organization is responding to the challenge.”

The company emphasized that the November-December period should be viewed together for purposes of same-store sales comparison to last year. Because of a dramatic year-over-year calendar shift that results in an important post-Thanksgiving week of sales falling in December this year versus November last year, Macy’s, Inc. had previously stated that November same-store sales were expected to be down in the low double digits.

The company reiterated its guidance for same-store sales in the fourth quarter (the months of November through January) to be down by 1 to 6 percent.

Macy’s, Inc. noted that current borrowings against its $2 billion bank credit agreement are expected to be paid off by the end of the current week (Friday, Dec. 5), and no further borrowings are expected this season. At peak, the company’s fourth quarter borrowing needs were approximately $163 million. Peak borrowing against the credit line in last year’s fourth quarter was approximately $1 billion.

Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2007 sales of $26.3 billion. The company operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail. Prior to June 1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc.

All statements in this press release 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 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 conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)