<SEC-DOCUMENT>0000794367-17-000094.txt : 20170922
<SEC-HEADER>0000794367-17-000094.hdr.sgml : 20170922
<ACCEPTANCE-DATETIME>20170712171335
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000794367-17-000094
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170712

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:			0117

	FILING VALUES:
		FORM TYPE:		CORRESP

	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>CORRESP
<SEQUENCE>1
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<div><a name="sDF149278452B5FA445E138706A95FD39"></a></div><div><div style="line-height:120%;padding-bottom:57px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">[JONES DAY LETTERHEAD]</font></div></div><div><br></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td style="width:36%;"></td><td style="width:23%;"></td><td style="width:41%;"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:8px;padding-bottom:32px;padding-right:2px;"><div style="padding-bottom:32px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">July 12, 2017</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Ms. Jennifer Thompson</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Accounting Branch  <br>Chief Officer of Consumer Products</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Securities and Exchange Commission</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Division of Corporation Finance</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">100 F Street, N.E.</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Mailstop 3561</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Washington, D.C.  20549</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Re:&#160;&#160;&#160;&#160;Macy&#8217;s, Inc.</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:inherit;font-size:12pt;">&#160;&#160;&#160;&#160;Form 10-K for the Fiscal Year Ended January 28, 2017</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:inherit;font-size:12pt;">&#160;&#160;&#160;&#160;Filed March 29, 2017</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:inherit;font-size:12pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">File No. 1-13536&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Dear Ms. Thompson:</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">On behalf of Macy&#8217;s, Inc. (the &#8220;Company&#8221;), we are writing to respond to your letter dated July 5, 2017 containing comments of the staff (the &#8220;Staff&#8221;) of the Securities and Exchange Commission in regard to the above-referenced filing.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The text of the Staff&#8217;s comments and the Company&#8217;s responses are set forth below.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Important Information Regarding Non-GAAP Financial Measures, page 20</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:48px;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">We note that the 2016 Overview on page 19 consists primarily of non-GAAP measures and does not quantify or give prominence to the most directly comparable GAAP measures. We further note your presentation of GAAP results does not begin until page 24. Please revise to ensure that any overview of financial results that contains non-GAAP measures also quantifies and gives prominence to the most directly comparable GAAP measures. Additionally, revise your presentation so that disclosures provided in response to Item 10(e) of Regulation S-K are not given greater prominence than your analysis of GAAP results. Refer to Item 10(e)(1)(i)(A) of </font></div></td></tr></table><div><br></div><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">July 12, 2017</font></div><div style="line-height:120%;padding-bottom:10px;text-align:right;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Page 2</font></div></div><div><br></div><div style="line-height:120%;padding-left:96px;padding-bottom:16px;text-align:left;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Regulation S-K and Question 102.10 of the May 17, 2016 Non-GAAP Financial Measures C&amp;DIs.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Response</font><font style="font-family:inherit;font-size:12pt;">:  In response to the Staff&#8217;s comment, the Company advises the Staff that it carefully evaluates the presentation of its disclosures in accordance with Item 10(e)(1)(i)(A) of Regulation S-K and Question 102.10 of the May 17, 2016 Non-GAAP Financial Measures C&amp;DIs.  When evaluating the presentation of both GAAP and non-GAAP financial measures, the Company considers the relevant filing as a whole and attempts to avoid duplication of disclosures and financial information to prevent investor confusion, particularly when substantially similar disclosures are provided in an adjacent section of the filing.  Specifically in consideration of the principle of equal or greater prominence of GAAP measures discussed in Question 102.10, the Company carefully considered whether the comparable GAAP measures were disclosed or presented prior to the related non-GAAP financial measure.  With respect to the non-GAAP financial measures discussed in the &#8220;2016 Overview&#8221; on page 19 of the Company&#8217;s Form 10-K, the Company respectfully advises the Staff that the following relevant fiscal 2016 GAAP financial measures are included in the section </font><font style="font-family:inherit;font-size:12pt;font-style:italic;">immediately preceding</font><font style="font-family:inherit;font-size:12pt;">&#32;MD&amp;A on page 16 under &#8220;Item 6. Selected Financial Data&#8221;:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Net sales</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Operating income</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Net income</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Diluted earnings per share attributable to Macy&#8217;s, Inc. shareholders</font></div></td></tr></table><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In contemplation of the specific GAAP and/or non-GAAP financial measures included in the &#8220;2016 Overview&#8221;, the Company&#8217;s considerations applicable to the principle of equal or greater prominence of GAAP financial measures were as follows:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Change in Comparable Sales on an Owned plus Licensed Basis</font><font style="font-family:inherit;font-size:12pt;">:  Comparable sales on an owned basis are provided in the respective bullet point on page 19 immediately preceding the Company&#8217;s non-GAAP financial measure of comparable sales on an owned plus licensed basis.  The reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other disclosures required by Item 10(e) of Regulation S-K are included on page 21.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Operating Income, Excluding Certain Items, as a Percent to Net Sales</font><font style="font-family:inherit;font-size:12pt;">: Net sales and operating income are provided on page 16 under &#8220;Item 6. Selected Financial Data&#8221; and the reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other disclosures required by Item 10(e) of Regulation S-K are included on page 21.  Although operating income as a percent of net sales is not specifically presented on page 16, such presentation was </font></div></td></tr></table><div><br></div><div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">July 12, 2017</font></div><div style="line-height:120%;padding-bottom:10px;text-align:right;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Page 3</font></div></div><div><br></div><div style="line-height:120%;padding-left:96px;padding-bottom:16px;text-align:left;"><font style="font-family:inherit;font-size:12pt;">deemed unnecessary given the simplistic and straightforward nature of the calculation and the fact that the components necessary for the calculation are presented on the same page. </font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Diluted Earnings Per Share Attributable to Macy&#8217;s, Inc. Shareholders, Excluding Certain Items</font><font style="font-family:inherit;font-size:12pt;">: Diluted earnings per share attributable to Macy&#8217;s, Inc. shareholders is provided on page 16 under &#8220;Item 6. Selected Financial Data&#8221; and the reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other disclosures required by Item 10(e) of Regulation S-K are included on page 22.  </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Adjusted EBITDA as a Percent to Net Sales</font><font style="font-family:inherit;font-size:12pt;">: Net sales and net income are provided on page 16 under &#8220;Item 6. Selected Financial Data&#8221; and the reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and other disclosures required by Item 10(e) of Regulation S-K are included on page 22.  Although net income as a percent of net sales is not specifically presented on page 16, such presentation was deemed unnecessary given the simplistic and straightforward nature of the calculation and the fact that the components necessary for the calculation are presented on the same page.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:72px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">ROIC</font><font style="font-family:inherit;font-size:12pt;">: Although this financial measure is not defined by GAAP, it is a key financial metric utilized by both the Company and the retail industry as a whole to evaluate the efficiency of invested capital. This measure is deemed by management to be a key financial measure to include in MD&amp;A as it is used by management in its analysis of the Company&#8217;s business. As detailed on page 23 and discussed in our previous SEC comment letter response dated June 25, 2013, the most directly comparable GAAP measure for ROIC is operating income as a percent to property and equipment &#8211; net. In future filings, the Company will disclose both property and equipment &#8211; net and operating income prior to the disclosure of ROIC to enable financial statement users to calculate operating income as a percent to property and equipment &#8211; net.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In addition, in light of the Staff&#8217;s comment and review of Question 102.10, the Company advises the Staff that in future filings the Company will revise its presentation so that the disclosures provided in response to Item 10(e) of Regulation S-K are moved after the disclosures under &#8220;Results of Operations&#8221; in MD&amp;A.  </font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:48px;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Please refer to your calculation of operating income, excluding certain items; diluted earnings per share attributable to Macy&#8217;s, Inc. shareholders, excluding certain items; adjusted EBITDA; and adjusted operating income </font></div></td></tr></table><div><br></div><div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">July 12, 2017</font></div><div style="line-height:120%;padding-bottom:10px;text-align:right;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Page 4</font></div></div><div><br></div><div style="line-height:120%;padding-left:96px;padding-bottom:16px;text-align:left;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">as calculated for ROIC. Based on your disclosures on page 20, it appears you believe it is useful to investors to adjust these metrics for certain items that may vary substantially in frequency and magnitude from period to period as it promotes comparability of your performance across time. However, we note that you have only removed the impact of items that had a negative impact on your profitability, and you have not also removed the impact of items that may vary substantially in frequency and magnitude from period to period that had a positive impact on your profitability. As one example, we note that gains on the sales of store locations and certain properties were $209 million, $212 million, $92 million, and $79 million in fiscal 2016, 2015, 2014 and 2013, respectively, and have not been removed from your non-GAAP measures. Refer to Question 100.03 of the May 17, 2016 Non-GAAP Financial Measures C&amp;DIs, and explain to us in detail how you determined it was appropriate to adjust these metrics solely for items that have a negative impact on your profitability.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;">Response</font><font style="font-family:inherit;font-size:12pt;">:  In response to the Staff&#8217;s comment, the Company advises the Staff that it carefully evaluates both negative and positive amounts in determining the appropriateness of the adjustments included in the aforementioned non-GAAP measures in accordance with the principals set forth in Question 100.03 of the May 17, 2016 Non-GAAP Financial Measures C&amp;DIs.  The Company believes that its calculations represent consistent and balanced approaches to adjust for the impact of discrete transactions or items that vary in frequency and magnitude from period to period. In determining the appropriateness of the transactions or items excluded in the aforementioned non-GAAP financial measures, a key consideration is whether such transaction or item is associated with the Company&#8217;s core operations in order to ensure that the non-GAAP financial information is relevant and meaningful to users of the Company&#8217;s financial information.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The monetization of the Company&#8217;s real estate portfolio has been identified as a strategic business initiative and therefore is a key component of the Company&#8217;s current operating results. As such, excluding any gains or losses related to the sale of the Company&#8217;s store locations and certain other properties would be tantamount to excluding income/losses related to a key component of the Company&#8217;s business strategy and would result in the disclosure of financial measures that are neither relevant nor useful to users of the Company&#8217;s financial information. In contrast, impairments, store closing and other costs are excluded from the aforementioned non-GAAP financial measures, because such amounts are primarily associated with operations (i.e., store locations) that are not core to the Company&#8217;s on-going business.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The Company has and will continue to evaluate the specific gains and losses from the sales of store locations and will exclude those material gains and losses associated with store locations that have been closed due to the determination that such location was not core to the </font></div><div><br></div><div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">July 12, 2017</font></div><div style="line-height:120%;padding-bottom:10px;text-align:right;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Page 5</font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Company&#8217;s operations.  In addition, to the extent material or appropriate, the Company will continue to present historical and anticipated gains on real estate transactions in the Company&#8217;s earnings guidance and in supplemental disclosure in the Company&#8217;s MD&amp;A.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In light of the Staff&#8217;s comment and the discussion above, in future filings the Company will enhance its disclosure addressing the relevance and usefulness of the Company&#8217;s non-GAAP financial measures as follows:</font></div><div style="line-height:120%;text-align:left;padding-left:72px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Management believes that excluding certain items </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">that are not associated with the Company&#8217;s core operations and</font><font style="font-family:inherit;font-size:12pt;">&#32;that may vary substantially in frequency and magnitude period-to-period from diluted earnings per share attributable to Macy's, Inc. shareholders and from operating income and EBITDA as percentages to sales provides useful supplemental measures that assist in evaluating the Company's ability to generate earnings and leverage sales, respectively, and to more readily compare these metrics between past and future periods.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">*       *       *       *       *       *       *</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">If you have any questions regarding the foregoing, please do not hesitate to contact me at (214) 969-5148, or by facsimile at (214) 969-5100.</font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:312px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Very truly yours,</font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:312px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">/s/  Charles T. Haag</font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:312px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:312px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">cc:&#160;&#160;&#160;&#160;Karen Hoguet, Macy&#8217;s, Inc.</font><font style="font-family:inherit;font-size:10pt;">&#32;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Felicia Williams, Macy&#8217;s, Inc.</font><font style="font-family:inherit;font-size:10pt;">&#32;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Elisa Garcia, Macy&#8217;s, Inc.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Ann Steines, Macy&#8217;s, Inc.</font><font style="font-family:inherit;font-size:10pt;">&#32;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Steve Watts, Macy&#8217;s, Inc.</font><font style="font-family:inherit;font-size:10pt;">&#32;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">John Atkinson, KPMG LLP</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font></div><div style="line-height:100%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:8pt;">NAI-1502828601v4</font><font style="font-family:inherit;font-size:12pt;">&#32;</font></div><div><br></div><div></div>	</body>
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