Financial Highlights

	2008	2007


Net Sales (in billions)	$ 24.892	$ 26.313

Change in same-store sales^{(Note 1)}	(4.6)%	(1.3)%


Operating Income (loss) (in billions)	$ (4.378)	$ 1.863

% of Sales	(17.6)%	7.1%


Operating Income, Excluding Certain Items (in billions) ^{(Note 2)}	$ 1.402	$ 2.082

% of Sales	5.6%	7.9%


Diluted Earnings (Loss) Per Share Income (loss) from Continuing Operations^{(Note 2)}	$ (11.40)	$ 2.01

Income from Continuing Operations, Excluding Certain Items ^{(Note 2)}	$ 1.26	$ 2.15



Cash Flow from Continuing Operating Activities (in billions)	$ 1.879	$ 2.231


Cash Flow from Continuing Operating Activities net of Cash Used in Continuing Investing Activities, Excluding Certain Items (in billions) ^{(Note 2)}	$ 1.050	$ 1.149

Notes:
(1)	Represents the year-to-year percentage change in net sales from Bloomingdale's and Macy's stores in operation throughout the year presented and the immediately preceding year and all Internet sales and mail order sales from continuing businesses.
(2)	Represents a non-GAAP measure of operating results. The Supplemental Operating Results contains a reconciliation to the most comparable GAAP measure.
The foregoing financial highlights, including non-GAAP measures that exclude certain items, should be read in conjunction with the audited financial statements, including the related notes and other financial information contained in the Form 10-K for the period ending January 31, 2009.