<SEC-DOCUMENT>0000794367-16-000168.txt : 20160223
<SEC-HEADER>0000794367-16-000168.hdr.sgml : 20160223
<ACCEPTANCE-DATETIME>20160223084020
ACCESSION NUMBER:		0000794367-16-000168
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160223
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160223
DATE AS OF CHANGE:		20160223

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:		161446889

	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>es8k02232016.htm
<DESCRIPTION>FORM 8-K FILED ON 2-23-2016
<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>
  </td>
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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>
  </td>
 </tr>
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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'><b>Washington, D.C.&nbsp; 20549</b></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'><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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  <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'>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>
  </td>
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 <tr>
  <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>
  </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'>Securities Exchange Act of 1934</p>
  </td>
 </tr>
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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>
  </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'>Date of Report:&nbsp; February 23, 2016</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'>&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>
  </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<font style="font-size: 11.0pt"><br>
  (513) 579-7000</font></p>
  </td>
 </tr>
 <tr>
  <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>
 </tr>
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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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  <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'>151 West 34<sup>th</sup> Street, New
  York, New York 10001<font style="font-size: 11.0pt"><br>
  (212) 494-1602</font></p>
  </td>
 </tr>
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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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  <td width=175 valign=top style='width:131.4pt;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'>(State of Incorporation)</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;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'>(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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  <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;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;
  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>
 </tr>
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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;'>&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;Written communications pursuant to Rule&nbsp;425 under the
  Securities Act (17 CFR 230.425)</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;Soliciting material pursuant to Rule&nbsp;14a-12 under the
  Exchange Act (17 CFR 240.14a-12)</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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 <tr style='page-break-inside:avoid;height:7.1pt'>
  <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;14d-2(b)
  under the Exchange Act (17 CFR 240.14d-2(b))</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <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>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <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;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>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</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:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</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: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 width=679
 style='width:509.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=89 colspan=3 valign=top style='width:66.5pt;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">Item 2.02. </font></p>
  </td>
  <td width=591 colspan=4 valign=top style='width:442.9pt;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'><u>
	<font size="2">Results of Operations
  and Financial Condition. </font></u></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>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=89 colspan=3 valign=top style='width:66.5pt;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;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=591 colspan=4 valign=top style='width:442.9pt;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">On February&nbsp;23, 2016, Macy's, Inc. (&quot;Macy's&quot;)
  issued a press release announcing Macy's financial condition and results of
  operations for the 13 and 52 weeks ended January 30, 2016.&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:11.0pt;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, cash flow from operating activities net of
  cash used in investing activities, and changes in comparable sales on an
  owned plus licensed basis.&nbsp; The excluded items include asset impairment
  charges, store closing and other costs and expenses associated with the early
  retirement of debt.&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; Management believes cash flow from operating activities
  net of cash used in investing activities is a useful measure in evaluating
  Macy's ability to generate cash from operations after giving effect to cash
  used by investing activities.&nbsp; Management believes that excluding cash flows
  from financing activities from the calculation of this measure 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. 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>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</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: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=89 colspan=3 valign=top style='width:66.5pt;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;'><font style="font-size: 11.0pt">Item 9.01.</font></p>
  </td>
  <td width=591 colspan=4 valign=top style='width:442.9pt;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'><u>
	<font size="2">Financial Statements and
  Exhibits.</font></u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.3pt;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=56 colspan=2 valign=top style='width:41.65pt;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;'>(d)</p>
  </td>
  <td width=504 colspan=2 valign=top style='width:377.8pt;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;'>Exhibits</p>
  </td>
  <td width=41 style='width:30.65pt;padding:0in 0in 0in 0in;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">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=6 valign=top style='width:478.75pt;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>
  <td width=41 style='width:30.65pt;padding:0in 0in 0in 0in;height:7.1pt'>
  <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>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:50.3pt;padding:0in 0in 0in 0in;
  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=68 colspan=3 valign=top style='width:50.65pt;padding:0in 0in 0in 0in;
  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:53.9pt;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=432 valign=top style='width:323.9pt;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 February 23, 2016.</p>
  </td>
  <td width=41 style='width:30.65pt;padding:0in 0in 0in 0in;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">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:50.3pt;padding:0in 0in 0in 0in;
  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=68 colspan=3 valign=top style='width:50.65pt;padding:0in 0in 0in 0in;
  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:53.9pt;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=432 valign=top style='width:323.9pt;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=41 style='width:30.65pt;padding:0in 0in 0in 0in;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">&nbsp;</font></p>
  </td>
 </tr>
 <tr height=0>
  <td width=67 style='border:none'></td>
  <td width=12 style='border:none'></td>
  <td width=10 style='border:none'></td>
  <td width=46 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=432 style='border:none'></td>
  <td width=41 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 width=679
 style='width:509.4pt;margin-left:-5.4pt;border-collapse:collapse'>
 <tr>
  <td width=67 style='width:50.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=12 style='width:9.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=10 style='width:.1in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=46 style='width:34.45pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=72 style='width:53.9pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=432 colspan=2 style='width:323.9pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=41 style='width:30.65pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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;margin-bottom:12.0pt;text-align:center'><b>MACY'S, INC.</b></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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;margin-bottom:12.0pt'>SIGNATURE</h3>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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;margin-bottom:12.0pt'>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.</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=638 colspan=7 valign=top style='width:478.75pt;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 style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=245 colspan=6 valign=top style='width:183.55pt;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=394 valign=top style='width:4.1in;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;margin-bottom:12.0pt'>MACY'S, INC.</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=245 colspan=6 valign=top style='width:183.55pt;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=394 valign=top style='width:4.1in;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 style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=245 colspan=6 valign=top style='width:183.55pt;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;February
  23, 2016</p>
  </td>
  <td width=394 valign=top style='width:4.1in;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>/s/
  Joel A. Belsky</u></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=245 colspan=6 valign=top style='width:183.55pt;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=394 valign=top style='width:4.1in;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>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><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:4.75pt'>
  <td width=245 colspan=6 valign=top style='width:183.55pt;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=394 valign=top style='width:4.1in;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;Executive
  Vice President and Controller</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=41><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=67 style='border:none'></td>
  <td width=12 style='border:none'></td>
  <td width=10 style='border:none'></td>
  <td width=46 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=38 style='border:none'></td>
  <td width=394 style='border:none'></td>
  <td width=41 style='border:none'></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>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext;margin-left:2.5in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp;&nbsp; </font> <u><font size="2">Index
to Exhibits</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;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">Index</font></p>

<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">Number</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;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">99.1&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;
Press Release of Macy's dated February 23, 2016.</font></p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>esexhibit991.htm
<DESCRIPTION>PRESS RELEASE DATED 2-23-2016
<TEXT>





</head>

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

<div style='page:WordSection1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:5.0in;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;&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";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;page-break-after:avoid;
text-autospace:none'><b>MACY'S, INC.
REPORTS FOURTH QUARTER AND FY2015 RESULTS </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>Diluted 2015 EPS is $3.22, or $3.77 as adjusted, exceeding
guidance;</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><i>Company provides 2016 sales and earnings guidance</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><i>&nbsp;</i></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'>CINCINNATI, Ohio, February 23, 2016 &#150;
Macy's, Inc. today reported fiscal 2015 earnings per diluted share of $3.22, or
$3.77 per diluted share excluding asset impairments, store closing and other
costs. The company's fourth quarter and full-year sales and earnings exceed the
company's most recent guidance.</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'>&#147;While 2015 was challenging, our sales
trend improved in January as the weather turned colder in northern climate
zones and Macy's and Bloomingdale's were well-stocked in coats, boots,
sweaters, gloves, hats and other seasonal goods. As the year ended, our inventories
were in good shape (up by 0.7 percent on a comp basis),&#148; said Terry J.
Lundgren, chairman and chief executive officer of Macy's, Inc. &#147;We are
encouraged by the way the business responded going into 2016, and we believe we
are well positioned to stabilize sales levels this year as we lay the
foundation for enhanced shareholder value and sustained, long-term profitable growth.
Given our determination to rise above our disappointing 2015 performance, I
have reminded my team that our setback last year is a setup for our comeback. &nbsp;&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'>&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'>&#147;Moving ahead, Macy's remains rooted in
the M.O.M. strategies that have resonated with customers seeking fashion,
value, quality and convenience as customers shop us in stores and digitally.
But we are redefining, updating and redirecting our efforts in each letter of
M.O.M. to carry us forward &#150; with My Macy's evolving from localization to
personalization, Omnichannel now focused on providing Omni Choices for
customers, and engaging customers by making Magic Connections,&#148; Lundgren said.
&#147;After the previous six consecutive years of cumulative success, 2015 reminded
us that retailing is a dynamic business that requires continuous reinvention as
the customer evolves. Today, we are examining every aspect of our business so
we can grow profitable sales and re-attain our goal over time of an EBITDA rate
as a percent of sales of 14 percent. </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'>&nbsp;&#147;We should not lose sight of the investments
we made in 2015 that will help us down the road. We registered yet another year
of double-digit growth in our online business, fueled by exceptional increases
in mobile traffic and increased conversions, with exciting new offerings from
macys.com and bloomingdales.com. We expanded our online capacity with a new
state-of-the-art fulfillment center in Tulsa, OK. We announced licensed
department arrangements with companies including LensCrafters, Men's Wearhouse
and Best Buy to add new categories to the Macy's store assortment. We completed
the acquisition of Bluemercury, which added capabilities to our signature
beauty business. We developed and launched Macy's Backstage, which will be
piloted as an in-store concept this spring. And we began initial testing of
online selling in China in a new joint venture with a Hong Kong-based partner,&#148;
he added. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:15.0pt;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:15.0pt;text-indent:.5in'>For the full year 2015, adjusted earnings (excluding
items described below) were $3.77 per diluted share. Due primarily to higher
sales and lower expenses, this exceeds the company's most recent guidance for
2015 earnings of $3.54 to $3.59 on the same basis. Comparable sales on an owned plus
licensed basis in the full-year 2015 declined by 2.5 percent. This compares to the
most recent guidance for 2015 sales on an owned plus licensed basis to be down
2.7 percent. On an owned basis, full-year 2015 comparable sales declined by 3.0
percent. </p>

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

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

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>Macy's, Inc., through its financial advisors, has
begun the process of contacting potentially interested parties with respect to partnership
or joint venture transactions involving the company's flagship and mall-based properties.&nbsp;
There has been a high degree of initial interest at this preliminary stage but
it is premature to comment further at this point.&nbsp;</p>

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

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><b><u>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-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>For the 52 weeks of fiscal 2015, Macy's, Inc. sales
totaled $27.079 billion, down 3.7 percent from total sales of $28.105 billion
in fiscal 2014. Comparable sales on an owned plus
licensed basis for the full-year 2015 declined by 2.5 percent. On an owned
basis, full-year 2015 comparable sales were down 3.0 percent.</p>

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

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>Sales in the 13-week fourth quarter of 2015 totaled $8.869
billion, down 5.3 percent from total sales of $9.364 billion in the fourth quarter
of 2014. Comparable sales on an owned plus licensed
basis for the fourth quarter were down 4.3 percent. On an owned basis, fourth
quarter comparable sales declined by 4.8 percent.</p>

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

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>In fiscal 2015, the company opened a total of 26
stores and closed 40 stores, all as previously announced. New stores included Macy's
in Ponce, PR, Bloomingdale's in Honolulu, HI, 15 Bluemercury self-standing
stores, six Macy's Backstage self-standing stores and three Bloomingdale's
Outlets. The 40 closed Macy's stores were listed in the company's announcement
of Jan. 6, 2016.</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Operating Income </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'>For fiscal 2015, Macy's, Inc.'s operating
income totaled $2.039 billion or 7.5 percent of sales, compared with operating
income of $2.800 billion or 10.0 percent of sales for fiscal 2014. Macy's,
Inc.'s fiscal 2015 operating income included $288 million of impairments, store
closing and other costs. The $288 million included $148 million of asset
impairment charges primarily related to store closings announced in January
2016 and $123 million of severance and other human resources-related costs
associated with organizational changes and store closings announced in January
2016. Excluding these items, operating income for fiscal 2015 was $2.327
billion or 8.6 percent of sales. Macy's, Inc.'s fiscal 2014 operating income
included expenses and asset impairment charges of $87 million associated with
merchandising and marketing restructuring, store and field adjustments, and
store closings. Excluding these items, operating income for fiscal 2014 was
$2.887 billion or 10.3 percent of sales.</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'>Macy's, Inc.'s operating income totaled $936
million or 10.6 percent of sales for the 13-week quarter ended Jan. 30, 2016,
compared with operating income of $1.364 billion or 14.6 percent of sales for
the fourth quarter of fiscal 2014. Macy's, Inc.'s fourth quarter 2015 operating
income included $177 million of impairments, store closing and other costs. The
$177 million included $37 million of asset impairment charges primarily related
to store closings announced in January 2016 and $123 million of severance and
other human resources-related costs associated with organizational changes and
store closings announced in January 2016. &nbsp;Excluding these items, operating
income for the fourth quarter of 2015 was $1.113 billion or 12.6 percent of sales. Fourth quarter
2014 operating income included asset impairment charges of $87 million
associated with merchandising and marketing restructuring, store and field
adjustments, and store closings. Excluding these items, operating income for
the fourth quarter of 2014 was $1.451 billion or 15.5 percent of sales. </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'>Operating income for fourth quarter and
full-year 2015 includes $84 million of the approximately $250 million gain to
be realized from the sale of Brooklyn real estate. The remainder of the gain is
expected to be booked in fiscal 2016 and fiscal 2017. </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>Earnings Per Share </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'>Earnings per diluted share on an adjusted
basis for fiscal 2015 were $3.77 after excluding $288 million ($184 million
after tax or 55 cents per diluted share) of impairments, store closing and
other costs.</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'>For the full-year fiscal 2014, Macy's,
Inc. earned $4.22 per diluted share.&nbsp; Earnings per diluted share for fiscal
2014 were $4.40 after excluding charges of $87 million ($54 million after tax
or 15 cents per diluted share) associated with previously announced
merchandising and marketing restructuring, store and field adjustments, store
closings and asset impairments, as well as $17 million ($10 million after tax
or 3 cents per diluted share) of expense related to the make-whole premium for
the early retirement of debt. </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'>Fourth quarter 2015 earnings were $1.73
per diluted share, or $2.09 excluding $177 million ($115 million after tax or
36 cents per diluted share) of impairments, store closing and other costs. </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'>Fourth quarter 2014 earnings were $2.26
per diluted share, or $2.44 excluding charges of $87 million ($54 million after
tax or 15 cents per diluted share) associated with previously announced
merchandising and marketing restructuring, store and field adjustments, store
closings and asset impairments, as well as $17 million ($10 million after tax
or 3 cents per diluted share) of expense related to the make-whole premium for
the early retirement of debt. </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-autospace:none'><b><u>Cash Flow </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'>Net cash provided by operating activities
was $1.984 billion in fiscal 2015, compared with $2.709 billion in fiscal 2014.
Net cash used by investing activities in fiscal 2015 was $1.092 billion,
compared with $970 million in the previous year. Thus, net cash provided before
financing activities was $892 million in fiscal 2015, compared with $1.739
billion in fiscal 2014. </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-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>In fiscal 2015, the company repurchased approximately 34.8
million shares of its common stock for approximately $2.0 billion. At Jan. 30,
2016, the company had remaining authorization to repurchase up to approximately
$500 million of its common stock.</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";page-break-after:avoid;text-autospace:none'><b><u>Looking Ahead </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'>The company expects comparable sales on an owned plus
licensed basis to decline by approximately 1 percent in fiscal 2016, with
comparable sales on an owned basis to be approximately 50 basis points lower. Total
sales are expected to be down by approximately 2 percent in fiscal 2016,
reflecting the 40 stores closed in 2015. Earnings of $3.80 to $3.90 per diluted share are expected in 2016.
Capital expenditures for 2016 are expected to be approximately $900 million, compared
with the capital expenditures of approximately $1.1 billion in fiscal 2015.</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'>In fiscal 2016, the company expects to
open a new Macy's store in Kapolei, HI, as well as approximately 42 additional Bluemercury locations (24 freestanding and 18 inside Macy's) and 16 Macy's
Backstage locations (1 freestanding and 15 inside Macy's). Announced new stores
in future years include Macy's in Murray, UT (2017), a Macy's replacement store
in Los Angeles, CA (2017), and Bloomingdale's in San Jose, CA (2017) and
Norwalk, CT (2018). In addition, a new Bloomingdale's store is expected to open
in 2017 in Kuwait, and new Macy's and Bloomingdale's stores are planned to open
in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group.</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'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid;text-autospace:none'><b><u>Investor Conference </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'>Macy's, Inc. will present at the Bank of
America Merrill Lynch 2016 Consumer &amp; Retail Technology Conference at 8
a.m. ET on Tuesday, March 15, in New York City. Media and investors may access
the live webcast of the presentation at  www.macysinc.com/ir
at the appointed time. The webcast will be available for replay. </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-bottom:.0001pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'>Macy's, Inc., with corporate offices in Cincinnati and
New York, is one of the nation&#146;s premier retailers, with fiscal 2015 sales of
$27.079 billion. The company operates about 870 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy's,
Bloomingdale's, Bloomingdale&#146;s Outlet, Macy's Backstage and Bluemercury, as
well as the macys.com, bloomingdales.com and bluemercury.com websites.
Bloomingdale&#146;s in Dubai is operated by Al Tayer Group LLC under a license
agreement.</p>

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

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>(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 (Feb. 23) at 9 a.m. ET. The 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 <font size="3">1-888-806-6224, passcode 9176608. 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";text-align:center'>&nbsp;</p>

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

<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='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>

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  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;January 30, 2016&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;January 31, 2015&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">$&nbsp; 8,869&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 9,364&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 1)................................................. </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;5,549</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;62.6%</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;5,589</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;59.7%</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">3,320&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">37.4%&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">3,775&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">40.3%&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;(2,207)</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">(24.8%)</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;(2,324)</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">(24.8%)</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'>Impairments,
  store closing and other costs (Note 2)..... </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; (177</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; (2.0%</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; (87</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'><u><font style="font-size: 11.0pt">&nbsp; (0.9%</font></u><font style="font-size: 11.0pt">)</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">936&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">10.6%&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">1,364&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">14.6%&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'><font style="font-size: 11.0pt">(93)</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">(97)</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'><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'><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'>Premium
  on early retirement of debt (Note 3)............. </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;&nbsp;-</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'><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;(17</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">843&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">1,250&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 4)... </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; (300</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; (457</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;543&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;793&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;&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";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;&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">$&nbsp;&nbsp;&nbsp; &nbsp;544</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;793</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">$&nbsp;&nbsp;&nbsp;&nbsp;1.74</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;2.30</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">$&nbsp;&nbsp;&nbsp;&nbsp;1.73</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;2.26</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">312.2&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">344.3&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">314.8&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">350.9&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;</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">310.3&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">340.6&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='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">$&nbsp;&nbsp;&nbsp;&nbsp; 270&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 266&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: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)</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:11.0pt;font-family:"Times New Roman","serif";'>Notes:</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;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 January 30, 2016 or January 31, 2015.</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;For the 13 weeks ended January 30,
2016, includes $37 million of asset impairment charges primarily related to the
store closings announced in January 2016 and $123 million of severance and
other human resource-related costs associated with the organization changes and
store closings announced in January 2016.&nbsp; For the 13 weeks ended January 31,
2015, included $33 million of asset impairment charges primarily related to the
store closings announced in January 2015 and $46 million of severance and other
human resource-related costs associated with the organization changes and store
closings announced in January 2015.&nbsp; For the 13 weeks ended January 30, 2016
and January 31, 2015, these costs amounted to $.36 and $.15 per diluted share
attributable to Macy's, Inc. shareholders.
</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";'><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;For the 13 weeks ended January 31,
2015, included approximately $17 million on a pre-tax basis, or $10 million
after tax or $.03 per diluted share attributable to Macy's, Inc. shareholders,
of expenses associated with the make-whole premium for the retirement of $407
million of 7.875% senior notes due 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";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(4)&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";'><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">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='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; 52 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;52 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;January 30, 2016&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;January 31, 2015&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">$ 27,079&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">$ 28,105&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 1).................................................. </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;16,496</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;60.9%</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;16,863</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;60.0%</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">10,583&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">39.1%&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">11,242&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">40.0%&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;(8,256)</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">(30.5%)</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;(8,355)</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">(29.7%)</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'>Impairments,
  store closing and other costs (Note 2)..... </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; (288</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;(1.1%</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; (87</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'><u><font style="font-size: 11.0pt">&nbsp;(0.3%</font></u><font style="font-size: 11.0pt">)</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">2,039&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">7.5%&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">2,800&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">10.0%&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'><font style="font-size: 11.0pt">(361)</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">(393)</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'><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'><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'>Premium
  on early retirement of debt (Note 3).............. </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;-</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'><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;(17</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">1,678&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">2,390&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 4)... </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; (608</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; (864</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">1,070&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">1,526&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; 2</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";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
  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">$&nbsp;&nbsp;1,072</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;1,526</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">$&nbsp;&nbsp;&nbsp;&nbsp;3.26</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;4.30</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">$&nbsp;&nbsp;&nbsp;&nbsp;3.22</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;4.22</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">328.4&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">355.2&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;&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">333.0&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">361.7&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">310.3&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">340.6&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='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">$&nbsp; 1,061&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 1,036&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: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)</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:11.0pt;font-family:"Times New Roman","serif";'>Notes:</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;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 52 weeks ended January 30, 2016 or January 31, 2015.</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;For the 52 weeks ended January 30,
2016, includes $148 million of asset impairment charges primarily related to
the store closings announced in January 2016 and $123 million of severance and
other human resource-related costs associated with the organization changes and
store closings announced in January 2016.&nbsp; For the 52 weeks ended January 31,
2015, included $33 million of asset impairment charges primarily related to the
store closings announced in January 2015 and $46 million of severance and other
human resource-related costs associated with the organization changes and store
closings announced in January 2015.&nbsp; For the 52 weeks ended January 30, 2016
and January 31, 2015, these costs amounted to $.55 and $.15 per diluted share
attributable to Macy's, Inc. shareholders.</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";'><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;For the 52 weeks ended January 31,
2015, included approximately $17 million on a pre-tax basis, or $10 million
after tax or $.03 per diluted share attributable to Macy's, Inc. shareholders,
of expenses associated with the make-whole premium for the retirement of $407
million of 7.875% senior notes due 2015.</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">(4)&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";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=731
 style='width:548.25pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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;January 30,</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;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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;2016&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'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">$&nbsp; 1,109</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&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;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">558</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">5,506</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">5,417</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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; 479</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'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">7,652</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">8,580</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">7,616</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">514</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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; 897</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; 711</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'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">$20,576</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">$21,330</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'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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;642</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;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">1,526</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">1,594</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">3,333</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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; 227</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; 296</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'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">5,728</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">5,075</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">6,995</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">7,233</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">1,477</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">1,443</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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">2,123</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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">4,250</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">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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; 3</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'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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; 4,253</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'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=445 valign=top style='width:333.9pt;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=99 valign=top style='width:73.9pt;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=445 valign=top style='width:333.9pt;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&#146; Equity................................ </font></p>
  </td>
  <td width=99 valign=top style='width:73.9pt;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">$20,576</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">$21,330</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'>&nbsp;</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='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;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-align:left'>Note: Certain reclassifications
were made to prior year's amounts to conform with the classifications of such
amounts in the most recent years.</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</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;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><font style="font-size: 11.0pt">MACY'S, INC.</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">&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'>52 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">January
  30, 2016&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'>52 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">January
  31, 2015</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">$&nbsp;&nbsp;&nbsp;1,070&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;1,526&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; Impairments, store
  closing and other costs................... </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">288&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">87&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">1,061&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">1,036&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">73&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">(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;&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; (Increase)&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:right'><font style="font-size: 11.0pt">(45)</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">22&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; (Increase)
  decrease 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">(60)</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">44&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";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">-&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">(3)</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">(61)</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 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">(78)</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">(21)</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;Increase (decrease) in accounts payable, accrued</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; liabilities and other items 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'><font style="font-size: 11.0pt">(144)</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">37&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 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">(69)</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">(65)</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">(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">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;Increase
  (decrease) in other liabilities not </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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (88</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;&nbsp;&nbsp; &nbsp;&nbsp;10</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;&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; 1,984</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; 2,709</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">(777)</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)</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">(336)</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; 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; 204&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; 172&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,
	net.....................................................................&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; 29</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;(74</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;(1,092</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;(970</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">499&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">1,044&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">(4)</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">(9)</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">(870)</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">(456)</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">(421)</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
  (decrease) 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">(83)</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">133&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">(2,001)</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">(1,901)</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; 163&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; 258&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;&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;(2,029</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;(1,766</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">(1,137)</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">(27)</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">$&nbsp;1,109</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;2,246</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;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-align:left'>Note: Certain reclassifications
were made to prior year's amounts to conform with the classifications of such
amounts in the most recent years.</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>&nbsp;</p>
<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;text-align:center;font-size:14.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>
<font style="font-size: 11.0pt">MACY'S, INC.</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">&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'>January 30,&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">2016&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'>52 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'>January 30,&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">2016&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">(4.8</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">(3.0</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;0.5</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'>
  &nbsp;</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">(4.3</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">(2.5</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:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:11.0pt;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;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;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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