 Terry J. Lundgren: Chairman, President and Chief Executive Officer  Macy’s Inc. 7 West Seventh Street Cincinnati, Ohio & 151 West 34 th Street New York, New York  Macy's operates around 800 Macy's stores and 40 Bloomingdale's stores in the United States and Puerto Rico. Its stores are primarily located in malls and sell family apparel, accessories, cosmetics, home furnishings, and other consumer goods.  Represented in 45 States, District of Columbia, Guam and Puerto Rico

The Chairman wants the stockholders to know that he is proud of the companies accomplishments in 2009 despite the downfall of the economy. In 2009 they paid off $966 million in debts and ended the year with $1.7 billion in cash. In 2010 we are devoting ourselves to change and putting the customer at the center of everything we do.

In all material respects the financial position of Macy’s, Inc. and subsidiaries as of January 30, 2010 and January 31, 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended January 30,2010, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Macy’s, Inc. maintained, in all material respects, effective internal control over financial reporting as of January 30, 2010,based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. KPMG LLP

Income Statement Gross Margin 68%66% Income from operations $507 million$4,938 million Net Income$380 million$4,803 million Earnings per share $.83$11.40 Balance Sheet (in millions) Liabilities$16,599$17,499 Owners Equity $4,701$4,646 Total Assets $21,300$22,145

 The cash flows from operations are more than the net income for the past two years. The company is expanding by opening new stores around the country and offering new incentives to get people to buy more. The most important part source of financing for the company is stock and cash has decreased over the past two years.

 Macy’s trade under the symbol “M”  Macy’s ended the year with $1.7 billion in cash  Offer’s free shipping  Sales up 2.6% in January and 3.9% in December  Holiday Campaigns raised $16.25 million for charity  Rachel Bilson launches “Edie Rose Home” exclusively at Macy’s

 Yes, I would purchase this stock. I would purchase this stock because it fluctuate but most time end at a high. I would also purchase this stock because a lot of money from my home goes into this store.

 Price per Share: as of close of the Market $23.75  This price is in higher than the start of last year ($16.92), but lower than the close ($ 26.32)