<SEC-DOCUMENT>0000794367-15-000151.txt : 20151112
<SEC-HEADER>0000794367-15-000151.hdr.sgml : 20151112
<ACCEPTANCE-DATETIME>20151112091123
ACCESSION NUMBER:		0000794367-15-000151
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20151111
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20151112
DATE AS OF CHANGE:		20151112

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Macy's, Inc.
		CENTRAL INDEX KEY:			0000794367
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		IRS NUMBER:				133324058
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0129

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13536
		FILM NUMBER:		151221931

	BUSINESS ADDRESS:	
		STREET 1:		7 WEST SEVENTH STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5135797000

	MAIL ADDRESS:	
		STREET 1:		7 W SEVENTH ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FEDERATED DEPARTMENT STORES INC /DE/
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	R H MACY & CO INC
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MACY ACQUIRING CORP
		DATE OF NAME CHANGE:	19861124
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>es8k11122015.htm
<DESCRIPTION>FORM 8-K FILED ON NOVEMBER 12, 2015
<TEXT>






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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>UNITED STATES</h2>
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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>SECURITIES AND EXCHANGE COMMISSION</h2>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>Washington</b><b>, D.C.</b><b>&nbsp; 20549</b></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>&nbsp;</b></p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:14.0pt;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;'>FORM 8-K</h4>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>CURRENT REPORT</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Pursuant to Section 13 or 15(d) of the</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Securities Exchange Act of 1934</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Date of Report:&nbsp; November 12, 2015</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Date of earliest event reported:&nbsp; November
  11, 2015</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="5">MACY'S, INC.</font></b></p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>7 West Seventh Street, Cincinnati, Ohio 45202<br>
  (513) 579-7000</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>-and-</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>151 West 34<sup>th</sup> Street, New York, New York 10001<br>
  (212) 494-1602</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <td width=175 valign=top style='width:131.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Delaware</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>1-13536</p>
  </td>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>13-3324058</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(State of Incorporation)</p>
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  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(Commission File Number)</p>
  </td>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(IRS Employer Identification No.)</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Check the
  appropriate box below if the Form 8-K is intended to simultaneously satisfy
  the filing obligation of the registrant under any of the following
  provisions:</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the
  Securities Act (17 CFR 230.425)</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the
  Exchange Act (17 CFR 240.14a-12)</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)
  under the Exchange Act (17 CFR 240.14d-2(b))</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)
  under the Exchange Act (17 CFR 240.13e-4(c))</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>
	Item 2.02.</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>
	<u>Results of
  Operations and Financial Condition</u>.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">On November 11,
  2015, Macy's, Inc. (&quot;Macy's&quot;) issued a press release announcing
  Macy's sales, financial condition and results of operations for the 13 and 39
  weeks ended October 31, 2015.&nbsp; The full text of the press release is attached
  hereto as Exhibit 99.1 and is incorporated herein by reference.</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">The press release referred to above contains certain
  non-GAAP financial measures of diluted earnings per share attributable to
  Macy's, Inc. shareholders, operating income and operating income as a percent
  of sales, excluding certain items, and changes in comparable sales on an
  owned plus licensed basis.&nbsp; The excluded items include asset impairment
  charges primarily associated with the anticipated store closings announced in
  2015.&nbsp; Management believes that diluted earnings per share attributable to
  Macy's, Inc. shareholders, operating income and operating income as a percent
  of sales excluding certain items are useful measures in evaluating Macy's
  ability to generate earnings from operations and that providing such measures
  will allow investors to more readily compare the earnings referred to in the
  press release to the earnings reported by Macy's in past and future periods.&nbsp;
  Management believes that excluding certain items from these calculations is
  particularly useful where the amounts of such items are not consistent in the
  periods presented.&nbsp; Macy's licenses third parties to operate certain
  departments in its stores and online and receives commissions from these
  third parties based on a percentage of their net sales. In its financial
  statements prepared in conformity with GAAP, Macy's includes these
  commissions (rather than sales of the departments licensed to third parties)
  in its net sales. Macy's does not, however, include any amounts in respect of
  licensed department sales (or any commissions earned on such sales) in its
  comparable sales calculation on an owned basis.&nbsp; Management believes
  that the amounts of commissions earned on sales of departments licensed to
  third parties are not material to its results of operations for the periods
  presented.&nbsp; Management believes that providing changes in comparable sales on
  an owned plus licensed basis is a useful measure to assist investors in
  evaluating Macy's ability to generate sales growth, whether through owned
  businesses or departments licensed to third parties, on a comparable basis.
  Management believes that providing changes in comparable sales on an owned
  plus licensed basis is particularly useful in evaluating the impact of
  changes in the manner in which certain departments are operated. However, the
  reader is cautioned that any non-GAAP financial measures provided by Macy's
  are provided in addition to, and not as alternatives for, Macy's reported
  results prepared in accordance with GAAP. Certain items that may have a
  significant impact on Macy's financial position, results of operations and
  cash flows must be considered when assessing Macy's actual financial
  condition and performance regardless of whether these items are included in
  these non-GAAP financial measures. In addition, you should note that the
  amounts received by Macy's on account of sales of departments licensed to
  third parties are limited to commissions received on such sales. The methods
  used by Macy's 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 provided by Macy's may
  not be comparable to similar measures provided by other companies.</font></p>
  </td>
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  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Item 9.01.</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'><u>
	<font size="2">Financial
  Statements and Exhibits</font></u><font size="2">.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">(d)</font></p>
  </td>
  <td width=505 colspan=2 valign=top style='width:378.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Exhibits</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=5 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=66 colspan=2 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">99.1</font></p>
  </td>
  <td width=433 valign=top style='width:324.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Press Release
  of Macy's dated November 11, 2015.</font></p>
  </td>
 </tr>
 <tr height=0>
  <td width=67 style='border:none'></td>
  <td width=12 style='border:none'></td>
  <td width=54 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=433 style='border:none'></td>
 </tr>
</table>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>MACY'S, INC.<br>
  <br>
  </b></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;text-decoration:underline;'>SIGNATURE<br>
  <br>
  </h3>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.<br>
  <br>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=2 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>MACY'S, INC.<br>
  <br>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Dated:&nbsp;&nbsp;November
  12, 2015</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>By:&nbsp;&nbsp;<u>&nbsp;&nbsp; /s/
  Joel A. Belsky&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Name:&nbsp;&nbsp;Joel
  A. Belsky</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Title:&nbsp;&nbsp;<font size="2">Executive Vice President and Controller </font></p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><br>
  <br>
  </p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><u>Index to Exhibits</u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Index <u>Number</u></p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>99.1</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Press Release
  of Macy's dated November 11, 2015.</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>esexhibit991.htm
<DESCRIPTION>PRESS RELEASE DATED NOVEMBER 11, 2015
<TEXT>





</head>

<body lang=EN-US link=blue vlink=purple>

<div style='page:WordSection1;'>

<p style='mso-style-link:"Heading 7 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-align:center'><sup>&nbsp;</sup></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:7.0in;text-indent:.5in'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 99.1</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style="font-size: 36.0pt">macy's inc.</font></b></p>

<p style='mso-style-link:"Heading 7 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><i>&nbsp;</i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:4.5in'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Contacts:</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Media
- Jim Sluzewski</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in'><b><font style="font-size: 11.0pt">&nbsp;513/579-7764</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><b><font style="font-size: 11.0pt">Investor
&#150; Matt Stautberg</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify'><b><font style="font-size: 11.0pt">&nbsp;513/579-7780</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">FOR IMMEDIATE RELEASE</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 14.0pt">MACY'S, INC. REPORTS THIRD QUARTER RESULTS </font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><i><font style="font-size: 13.0pt">Company updates guidance, outlines strategy on real
estate</font></i></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 14.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">CINCINNATI, Ohio, November 11, 2015 &#150; Macy's, Inc.
today reported earnings per share of 36 cents in the third quarter of 2015,
ended Oct. 31, 2015. Excluding asset impairment charges of $111 million, or 20
cents per share, primarily related to the previously-announced plans to close
35 to 40 stores in early 2016, third quarter earnings per share were 56 cents
per share. This compares with 61 cents per diluted share in the third quarter
of 2014.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Editor's Note: This morning, Macy's, Inc
and Luxottica Group also issued a separate news release announcing an agreement
to open licensed LensCrafters departments in as many as 500 Macy's stores.)</i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">For the first three quarters of 2015, Macy's, Inc.'s
diluted earnings per share were $1.56. Excluding asset impairment charges of
$111 million, or 20 cents per share, primarily related to planned 2016 store
closings, year-to-date earnings per diluted share were $1.76. This compares
with earnings of $2.01 per diluted share in the first three quarters of 2014.&nbsp; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">
&quot;We are disappointed that the pace of sales did not
improve in the third quarter, as we had expected. Spending by domestic
customers remained tepid, especially in key apparel and accessory categories. Simultaneously,
the slowdown in buying by international visitors continued to significantly
impact Macy's and Bloomingdale's stores in tourist centers, which are some of
our company's largest-volume and most profitable locations,&quot; said Terry J.
Lundgren, chairman and chief executive officer of Macy's, Inc. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">
&quot;We have begun testing and learning from new sales
growth initiatives that we believe will begin yielding incremental results in
the quarters and years ahead. This included the opening of the first five
Macy's Backstage off-price stores in the New York City metro area (with a sixth
opening planned in the fourth quarter),&quot; Lundgren said.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">
&quot;Heading into the fourth quarter, we are shifting our
organization into overdrive to focus on sales-driving activities in the holiday
shopping season, when Macy's and Bloomingdale's shine as destinations for
gift-giving and self-purchase,&quot; he added. &quot;We also will be opening stores in
several of our nameplates in the fourth quarter, including a new Bloomingdale's
at Ala Moana in Honolulu.&quot;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">
&quot;Moving forward, we are accelerating steps needed to adapt
in response to changing customer shopping preferences so we can restore our
annual comparable sales growth on an owned plus licensed basis in the years
ahead to the level of 2 percent to 3 percent while re-attaining an EBITDA rate
as percent of sales of 14 percent. This includes building on our strength as a
leading omnichannel innovator with consistent growth in online sales,&quot; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">Lundgren
said. &quot;No other retailer has our track record of mastering change and creating
shareholder value with a model of customer centricity. We have a deep and
resourceful management team that is skilled in creating and executing
successful strategies. Since the beginning of fiscal 2009, we have returned
nearly $9 billion to shareholders. Our Total Shareholder Return has been 540
percent during that period, compared with a 121 percent increase in the Dow
Jones Industrial Average.&quot; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u><font style="font-size: 11.0pt">Real Estate Considerations</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>
<font style="font-size: 11.0pt">Macy's, Inc. is pursuing the following strategic real
estate initiatives: </font></p>
<font style="font-size: 11.0pt"><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.75in;text-indent:-.25in;text-autospace:
none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-size: 11.0pt">Based on a successful
collaboration on Macy's previously announced Brooklyn store redevelopment
project, the company has engaged Tishman Speyer in an expanded relationship to
advise and support the company's senior management team in identifying and
advancing potential store redevelopment projects nationwide. The company may
request Tishman Speyer to participate in bidding for certain of these projects. In all cases, a third party will be used to manage the bidding and negotiations
process.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.75in;text-indent:-.25in;text-autospace:
none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-size: 11.0pt">The company has begun a process to
explore joint ventures or other deal structures with third parties to redevelop
Macy's flagship real estate assets in Manhattan (Herald Square), San Francisco
(Union Square),&nbsp;&nbsp; Chicago (State Street) and Minneapolis (downtown Nicollet Mall)
in a manner that maintains a robust Macy's retail store presence while also
bringing alternative use into those buildings; this exploration could expand to
include other assets, including mall-based properties, to the extent
opportunities are available. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.75in;text-indent:-.25in;text-autospace:
none'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-size: 11.0pt">The company will continue to
pursue selected real estate dispositions and monetize assets in instances where
the business is simultaneously enhanced (such as the recently announced real
estate sales of underutilized portions of properties in Brooklyn and downtown
Seattle) or where the value of real estate significantly outweighs the value of
the retail business (such as the recent sale of Macy's stores in Cupertino and
downtown Pittsburgh).</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">After extensive review with the assistance of our
experienced financial, tax, legal and real estate advisors, the company has
decided not to pursue the formation of a REIT at this time. The board of directors
has concluded that a REIT does not offer sufficient upside potential for value
creation.&nbsp; To the extent that circumstances change, we may revisit this alternative
in the future.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">While much work has been done to date, Macy's, Inc. is
continuing to analyze its real estate portfolio to identify opportunities to
drive additional shareholder value. The company is open to considering
additional ideas for further enhancing shareholder value while maintaining an
investment-grade credit rating and an operating structure that fosters sales
and earnings growth.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u><font style="font-size: 11.0pt">Ongoing Business Strategies/Actions</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macy's,
Inc. is continuing to execute a number of key strategies and actions going
forward to adapt its business model as an omnichannel retailer committed to
outstanding stores as a competitive differentiator. These adjustments are
rooted in Macy's MOM strategies (My Macy's localization, Omnichannel and Magic
Selling customer engagement) and Bloomingdale's focus on omnichannel
opportunities, contemporary style and personalized service -- which have proven
to be a powerful driver of success. In part, the company is:</font></p>

<p style='margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.25in; margin-right:0in; margin-top:0in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerating
investments in Macy's, Bloomingdale's and Bluemercury's digital and mobile
capabilities to mirror the shift to increased online shopping, where the
company continues to see double-digit, year-over-year sales increases. Macy's,
Inc. is already a leader in this area, and ranked as the seventh largest Internet
retailer in the United States.</p>
<p style="font-size: 11.0pt; font-family: Times New Roman; text-indent: -.25in; margin-left: .75in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrating
its resources in top stores in the best locations so each store is a more
compelling magnet for customer activity and uses its selling space more
productively. Best stores will see intensified merchandise assortments in key
destination departments such as jewelry and watches, strategically selected
licensed departments, strengthened visual presentation, enhanced staffing and
more local marketing. Meanwhile, in early 2016, the company will be closing 35
to 40 of its current portfolio of about 800 Macy's and Bloomingdale's stores,
as previously announced, and expects it will continue to reduce the number of
stores over time. </p>

<p style='mso-style-link:"Plain Text Char";margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.25in; margin-right:0in; margin-top:0in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reducing
expense and tightening capital spending to operate more efficiently and fund
the highest-potential growth initiatives. Macy's, Inc.'s target is to reduce annual SG&amp;A by $500 million (net of growth initiatives) from previously planned
levels by 2018, with incremental progress in 2016 and 2017 toward that goal.
These structural expense reductions will result in charges to be taken in each
of the three years. Specific plans to achieve these savings are being
formulated. Macy's, Inc. will reduce capital spending to less than $1 billion
in 2016 from the $1.2 billion expected in 2015. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-left:.25in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.25in;text-indent:.25in; margin-right:0in; margin-top:0in'>The company also is quickly building-out
new directions for the longer-term future:</p>

<p style='margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.25in; margin-right:0in; margin-top:0in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expand Macy's
Backstage as an exciting new dimension in retailing across America. Over the
next two years, the company will roll out about 50 free-standing Macy's Backstage
stores in off-mall locations, building on the pilot launch this fall. In addition,
in spring 2016 the company will pilot Backstage stores within up to 10 existing
Macy's store locations, creating a new hybrid store (the first in retailing)
that offers the latest fashions, outstanding service and major brands for which
Macy's is known, along with the thrill of the hunt associated with the finds
and bargains at Backstage. </p>

<p style='margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.25in; margin-right:0in; margin-top:0in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Open
approximately 40 additional Bluemercury self-standing beauty specialty stores (bringing
the total store base to approximately 115 by the end of 2017), while also
integrating Bluemercury shops into the beauty departments of Macy's stores. </p>

<p style='margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:.75in;text-indent:-.25in; margin-right:0in; margin-top:0in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appropriately
expand Macy's internationally based on the learnings we expect from the Macy's
China Limited pilot with Alibaba's Tmall Global beginning in the fourth
quarter. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Third Quarter Sales </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Sales in the third quarter of 2015 totaled $5.874
billion, a decrease of 5.2 percent, compared with sales of $6.195 billion in
the same period last year. Comparable sales on an owned plus licensed basis
were down by 3.6 percent in the third quarter. On an owned basis, third quarter
comparable sales declined by 3.9 percent.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">For the year to date, Macy's, Inc. sales totaled
$18.210 billion, down 2.8 percent from total sales of $18.741 billion in the
first three quarters of 2014. Comparable sales on an owned plus licensed basis
were down by 1.7 percent year-to-date in 2015. On an owned basis, year-to-date
comparable sales declined by 2.2 percent.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">In the third quarter, the company opened a new Macy's
store in Ponce, PR, five Macy's Backstage stores in metro New York City, and 10
new Bluemercury freestanding specialty stores. The company closed Macy's stores
in Bedford, NH, and Owings Mills, MD. In the fourth quarter, scheduled store
openings include a full-line Bloomingdale's in Honolulu, three Bloomingdale's
Outlets, and one Macy's Backstage. A Macy's store in Los Angeles, is scheduled
to close in the fourth quarter of 2015 in preparation for a new store to be built
in the same mall.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u><font style="font-size: 11.0pt">Operating Income </font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">Macy's,
Inc.'s third quarter 2015 operating income was $369 million or 6.3 percent of
sales, excluding asset impairment charges of $111 million primarily related to
previously-announced plans to close 35 to 40 stores in early 2016. This
compares with operating income of $422 million or 6.8 percent of sales for the
same period last year. Macy's, Inc.'s operating income including the asset
impairment charges totaled $258 million or 4.4 percent of sales for the quarter
ended Oct. 31, 2015. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">For
the first three quarters of 2015, Macy's, Inc.'s operating income was $1.214
billion or 6.7 percent of sales, excluding asset impairment charges of $111
million primarily related to previously-announced store closings. This compares
with operating income of $1.436 billion or 7.7 percent of sales for the same
period last year. Macy's, Inc.'s year-to-date 2015 operating income including
the asset impairment charges totaled $1.103 billion or 6.1 percent of sales. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><u><font style="font-size: 11.0pt"><br>
<br>
</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><u><font style="font-size: 11.0pt">Cash Flow </font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">Net
cash provided by operating activities was $278 million in the first three
quarters of 2015, compared with $841 million in the first three quarters of
2014. Net cash used by investing activities in the first three quarters of 2015
was $861 million, compared with $660 million a year ago. Investing activities
in year-to-date 2015 included $212 million for the acquisition of Bluemercury.
Net cash used by financing activities in the first three quarters of 2015 was
$1.189 billion, compared with net cash used by financing activities in the
first three quarters of 2014 of $1.406 billion. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">The
company repurchased approximately 16.7 million shares of its common stock for a
total of approximately $900 million in the third quarter of 2015. In the fiscal
year to date, the company repurchased approximately 30.6 million shares of its
common stock for approximately $1.84 billion. At Oct. 31, 2015, the company had
remaining authorization to repurchase up to approximately $700 million of its
common stock.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u><font style="font-size: 11.0pt">Updated Guidance </font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">The company has revised its 2015 guidance. Earnings
per diluted share for the full-year 2015 now are expected in the range of $4.20
to $4.30, excluding asset impairment charges associated primarily with
previously announced store closings. This compares with previous guidance in
the range of $4.70 to $4.80. Updated annual guidance calculates to guidance for
fourth quarter earnings of $2.54 to $2.64 per diluted share, excluding any
additional charges associated with store closings or cost reductions. Earnings
guidance for 2015 includes gains from asset sales, including approximately $60
million from the sale of real estate in Seattle and an expected
$250 million gain on the sale of real estate in downtown Brooklyn.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Guidance is for full-year 2015 comparable sales on an
owned plus licensed basis to decrease by 1.8 percent to 2.2 percent, compared
with previous guidance of approximately flat. This calculates to fourth quarter
comparable sales on an owned plus licensed basis to decline by 2.0 percent to 3.0
percent. Full-year and fourth quarter 2015 comparable sales on an owned basis
will be approximately 50 basis points lower than on an owned plus licensed
basis. The company expects 2015 total sales to be down by 2.7 percent to 3.1
percent, compared to previous guidance for total sales to be down approximately
1 percent. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Important Information Regarding Financial Measures</u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>Please see the final pages of this news
release for important information regarding the calculation of the company's
comparable sales and non-GAAP financial measures.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Macy's, Inc., with corporate offices in Cincinnati and
New York, is one of the nation's premier retailers, with fiscal 2014 sales of
$28.105 billion. The company operates about 900 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy's,
Bloomingdale's, Bloomingdale's Outlet, Macy's Backstage and Bluemercury, as
well as the macys.com, bloomingdales.com and bluemercury.com websites.
Bloomingdale's in Dubai is operated by Al Tayer Group LLC under a license
agreement.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">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 and non-recurring charges, competitive pressures from specialty stores,
general merchandise stores, off-price and discount stores, manufacturers'
outlets, the Internet, mail-order catalogs and television shopping 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.&nbsp;
In light of these risks and uncertainties, readers are cautioned not to place
undue reliance on forward-looking statements.&nbsp; Except as may be required by
applicable law, Macy's disclaims any obligation to update its forward-looking
statements for any reason. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><br>
<br>
<br>
#&nbsp; #&nbsp; #</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt;text-autospace:none'><font style="font-size: 11.0pt"><br>
(NOTE: Additional information on Macy's, Inc., including past news releases, is
available at www.macysinc.com/pressroom.<i> </i>A webcast of Macy's, Inc.'s
call with analysts and investors will be held today (Nov. 11) at 9 a.m. (ET).
Macy's, Inc.'s webcast is accessible to the media and general public via the
company's website at www.macysinc.com. Analysts and investors may call in on
1-888-637-7746, passcode 3336328. A replay of the conference call can be
accessed on the website or by calling 1-888-203-1112 (same passcode) about two
hours after the conclusion of the call.)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">Macy's,
Inc. management will present at the Morgan Stanley Global Consumer &amp; Retail
Conference at 10 a.m. Eastern Time on Wednesday, Nov. 18, 2015, in New York
City. Media and investors may access the live webcast of the presentation at   www.macysinc.com/ir</font></a>
at that time. The webcasts will be available for replay. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13 Weeks Ended&nbsp;&nbsp;
  &nbsp;&nbsp;</font></p>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;13 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>&nbsp;&nbsp;&nbsp;October 31, 2015&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>&nbsp;&nbsp;&nbsp;November 1, 2014&nbsp;&nbsp;&nbsp;</h4>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  sales................................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 5,874&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 6,195&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2)............................................... </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,537</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.2%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,766</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.8%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Gross
  margin............................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">2,337&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">39.8%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">2,429&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">39.2%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Selling,
  general and administrative expenses................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(1,968)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(33.5%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(2,007)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(32.4%)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Asset
  impairments..................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (111</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; (1.9%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Operating
  income...................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">258&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">4.4%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">422&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">6.8%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Interest
  expense &#150; net............................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(80</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(96</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Income before income taxes...................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">178&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">326&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Federal, state and local income tax&nbsp;expense (Note 3)... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (61</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (109</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;117&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;217&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  loss attributable to noncontrolling interest............. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;1</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;-</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income attributable to Macy's, Inc. shareholders... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;118</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;217</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Basic earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-left:.25in'>Macy's, Inc. shareholders..................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.36</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.62</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Diluted
  earnings per share attributable to</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";text-indent:.25in;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Macy's, Inc. shareholders..................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.36</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.61</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Average common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic.................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">325.3&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">351.6&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted................................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">329.7&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">357.7&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>End
  of period common shares outstanding.................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">314.4&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">346.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Depreciation
  and amortization expense....................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 271&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 263&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(1)&nbsp;&nbsp;Because of the seasonal nature of
the retail business, the results of operations for the 13 weeks ended October
31, 2015 and November 1, 2014 (which do not include the Christmas season) are
not necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(2)&nbsp;&nbsp;Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not result
in the recognition of any LIFO charges or credits affecting cost of sales for
the 13 weeks ended October 31, 2015 or November 1, 2014.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35%, principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39 Weeks Ended&nbsp;&nbsp;
  &nbsp;&nbsp;</font></p>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:-5.4pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;39 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>&nbsp;&nbsp;&nbsp;October 31, 2015&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>&nbsp;&nbsp;&nbsp;November 1, 2014&nbsp;&nbsp;&nbsp;</h4>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  sales.................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$ 18,210&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$ 18,741&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2)............................................... </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;10,947</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;11,274</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.2%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Gross
  margin............................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">7,263&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">39.9%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">7,467&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">39.8%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Selling,
  general and administrative expenses................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(6,049)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(33.2%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(6,031)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(32.1%)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Asset
  impairments..................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (111</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; (0.6%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Operating
  income...................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">1,103&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">6.1%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">1,436&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">7.7%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Interest
  expense &#150; net............................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (268</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (296</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Income before income taxes...................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">835&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">1,140&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Federal, state and local income tax&nbsp;expense (Note 3)... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (308</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (407</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">527&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">733&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  loss attributable to noncontrolling interest............. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 1</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;-</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income attributable to Macy's, Inc. shareholders... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;528</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;733</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Basic earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-left:.25in'>Macy's, Inc. shareholders................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.58</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;2.04</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Diluted
  earnings per share attributable to</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";text-indent:.25in;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Macy's, Inc. shareholders................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.56</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;2.01</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Average common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">333.9&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">358.9&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">339.0&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">365.2&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>End
  of period common shares outstanding.................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">314.4&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">346.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Depreciation
  and amortization expense....................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 791&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 770&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 11.0pt">(1)&nbsp;&nbsp;Because of the seasonal nature of
the retail business, the results of operations for the 39 weeks ended October
31, 2015 and November 1, 2014 (which do not include the Christmas season) are
not necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(2)&nbsp;&nbsp;Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not result
in the recognition of any LIFO charges or credits affecting cost of sales for
the 39 weeks ended October 31, 2015 or November 1, 2014.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-indent:-.25in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35%, principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Balance Sheets (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 10.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=650
 style='width:487.8pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;October 31,</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">January 31,</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;November 1,</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2014&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">ASSETS:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Current
  Assets:</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash
  equivalents.................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;474</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 2,246</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 1,048</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables....................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">200</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">424</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">292</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise
  inventories..................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">8,145</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,516</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,789</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and
  other current assets........... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 425</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 493</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 424</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current
  Assets....................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">9,244</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">8,679</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">9,553</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Property and Equipment &#150;
  net................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,629</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,800</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,787</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Goodwill............................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,897</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,743</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,743</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Intangible Assets
  &#150; net................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">518</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">496</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">504</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Assets......................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 798</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 743</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 825</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets.................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$22,086</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$21,461</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$22,412</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">LIABILITIES AND
  SHAREHOLDERS' EQUITY:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Current Liabilities:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term debt.................................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$ &nbsp;&nbsp;&nbsp; 857</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;76</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise accounts
  payable............................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,776</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,693</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,814</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and
  accrued liabilities............... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,692</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,109</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,563</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income
  taxes...................................................... </p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">102</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">296</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">114</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes........................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 375</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 396</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current
  Liabilities.................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,802</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,536</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">6,963</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Long-Term Debt................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,106</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,265</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,130</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Deferred Income Taxes......................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,078</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,081</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,314</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Liabilities..................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,125</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,201</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,654</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:9.0pt'><font style="font-size: 11.0pt">Shareholders'
  Equity:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macy's, Inc........................................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,971</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,378</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,351</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling
  interest......................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Shareholders' Equity................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 3,975</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 5,378</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 5,351</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:6.75pt'>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities
  and Shareholders' Equity.......... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$22,086</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$21,461</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$22,412</font></u></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Note: Certain
reclassifications were made to prior year's amounts to conform with the
classifications of such amounts in the most recent years.</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Cash Flows (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=643
 style='border-collapse:collapse'>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>39 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">October
  31, 2015&nbsp;&nbsp;&nbsp; </font></h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>39 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">November
  1, 2014</font></h3>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  flows from operating activities:</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Net income................................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;527&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;733&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Adjustments
  to reconcile net income to net cash<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairments................................................... </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">111&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and
  amortization................................... </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">791&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">770&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense........................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">65&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">55&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of
  financing costs and premium on </font></p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquired
  debt......................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(14)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(4)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in assets and liabilities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in receivables........................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;226&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 154&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; Increase in merchandise inventories........................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(2,600)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(2,232)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-right:-9.9pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in
  prepaid expenses and other current assets. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(36)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(4)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-right:-5.4pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in
  other assets not separately identified..... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(1)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(46)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase
  in merchandise accounts payable............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">1,843&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">1,935&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease in accounts payable, accrued liabilities</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and other items not separately
  identified............ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(380)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(298)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in current income taxes.......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(194)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(248)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase
  (decrease) in deferred income taxes......... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(21)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">29&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in other liabilities not separately identified&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39)</font></u></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(3</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by operating activities.............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;278</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;841</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Cash flows from investing
  activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;
	Purchase of property and equipment............................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(591)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(547)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Capitalized
  software...................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(249)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(190)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition
  of Bluemercury, Inc., net of cash acquired..... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(212)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Disposition
  of property and equipment............................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 79&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Other,&nbsp;
  net.................................................................... &nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by investing activities................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;(861</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;(660</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'><br clear=all
  style='page-break-before:always'>

  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Cash flows from financing
  activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Debt
  issued.................................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">791&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">500&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Financing
  costs............................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(5)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Debt
  repaid.................................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(152)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(462)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Dividends
  paid.............................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(344)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(314)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Increase
  in outstanding checks...................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">136&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">123&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition
  of treasury stock......................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(1,785)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(1,456)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Issuance
  of common stock............................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 160&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 208&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Proceeds
  from noncontrolling interest............................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by financing activities.................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(1,189</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(1,406</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-right:17.1pt;text-align:right'>&nbsp;</h2>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-right:17.1pt;text-align:right'>&nbsp;</h2>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  decrease in cash and cash equivalents........................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(1,772)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(1,225)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  and cash equivalents at beginning of period............... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 2,246</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 2,273</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  and cash equivalents at end of period........................ </p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;474</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;1,048</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Note: Certain
reclassifications were made to prior year's amounts to conform with the
classifications of such amounts in the most recent years.</font></p>
<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Important Information Regarding Non-GAAP Financial
Measures</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">The Company reports its financial results in
accordance with 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
evaluating operating performance. See the table below for supplemental
financial data and a corresponding reconciliation to the most directly
comparable GAAP financial measures. This non-GAAP financial measure 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 this non-GAAP financial measure may
be significant items that could impact the Company's financial position,
results of operations and cash flows and should therefore be considered in
assessing the Company's actual financial condition and performance. Additionally,
the amounts received by the Company on account of sales of departments licensed
to third parties 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.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">Macy's, Inc. believes that providing changes in
comparable sales on an owned plus licensed basis, which includes the impact of
growth in comparable sales of departments licensed to third parties
supplementally to its results of operations calculated in accordance with GAAP
assists in evaluating the Company's ability to generate sales growth, whether
through owned businesses or departments licensed to third parties, on a
comparable basis, and in evaluating the impact of changes in the manner in
which certain departments are operated.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=655
 style='border-collapse:collapse'>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>13 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'>October 31,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">2015&nbsp;
  </font></h3>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>39 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'>October 31,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">2015&nbsp;
  </font></h3>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Decrease in comparable sales on an owned basis (Note 1)........ </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(3.9</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(2.2</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Impact of growth in comparable sales of departments</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;licensed
  to third parties (Note 2)....................................... </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.3</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.5</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=427 valign=top style='width:4.45in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Decrease in comparable sales on an owned plus licensed
  basis.. </p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(3.6</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(1.7</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Notes:</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 10.0pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;Represents the period-to-period
change in net sales from stores in operation throughout the year presented and
the immediately preceding year and all online sales, excluding commissions from
departments licensed to third parties.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 10.0pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;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
via the Internet in the calculation of comparable sales. The Company licenses
third parties to operate certain departments in its stores and online and
receives commissions from these third parties based on a percentage of their
net sales. In its financial statements prepared in conformity with GAAP, the
Company includes these commissions (rather than sales of the departments
licensed to third parties) in its net sales. The Company does not, however,
include any amounts in respect of licensed department sales (or any commissions
earned on such sales) in its comparable sales in accordance with GAAP (i.e. on
an owned basis). The Company believes that the amounts of commissions earned on
sales of departments licensed to third parties are not material to its results
of operations for the periods presented.</font></p>

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