Executive Summary

• On August 21 after the market close, Macy’s announced the appointment of Hal Lawton as President, effective September 8. Lawton will be responsible for the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. Lawton was previously SVP of eBay North America. He will report to CEO Jeff Gennette.
• Separately, the company announced a restructuring of its merchandising operations to consolidate three functions—merchandising, planning and private brands—into a single merchandising function, led by Jeff Kantor.
• The restructuring is expected to save $30 million on an annual basis, including $5 million, or $0.01 per share, in the fourth quarter, which is additive to guidance announced on August 10 of adjusted EPS of $3.37–$3.62.