Macy's 2006 Annual Report Download - page 5

Momentum into 2007
The positive progress of last year continued into 2007. The Board announced
it would ask shareholders to change our corporate name to Macy’s, Inc.,
eective June 1, 2007. A shareholder vote will be conducted in conjunction
with Federated’s Annual Meeting in May. While our company has been called
Federated since 1929, Macy’s, Inc. better represents our business today.
By aligning our corporate name with our largest brand, we will increase
the visibility of the company with customers, leverage the world-famous
Macy’s brand name, and get more credit for our accomplishments in
the marketplace.
The Board also authorized a $4 billion increase in the company’s stock
repurchase program. This included a February buyback of 45 million
outstanding shares through accelerated share repurchase agreements.
The Board’s decision reinforces its condence in the future of our company.
We believe that repurchasing shares is a very productive use of excess
cash and balance sheet capacity.
More Work To Do
All of our progress over the past year was just a new beginning in the
journey to meet customer needs, develop robust brands and enhance
shareholder value over the long term.
We still have plenty of work to do to fully capitalize on the opportunity
we see in Macy’s and Bloomingdale’s. And 2007 will be a year of relentless
execution of our strategic priorities.
We will continue to create dierentiation in our merchandise and seek to
deliver great value for the customer’s dollar. We will continue to simplify our
pricing as we nd the right level of promotional activity. We will continue to
“reinvent” the department store and to improve the shopping experience.
And we will continue to be aggressive in marketing – nding the most
ecient ways to reach customers with compelling messages about the
quality, excitement, style and service they will nd in our stores.
We will continue to strive to strike the right balance between national
branding and tailoring local assortments in every location – making every
store appealing and convenient for the customer who shops there.
An Extraordinary Mission
Federated has evolved into a new company today – with sales of about
$27 billion in 2006, nearly double the level of just two years earlier. We
have more than 850 stores, about 188,000 employees, and signicant
resources and assets. Yet our core mission today remains the same – to
serve each customer individually, and to help shoppers express their
sense of personal style.
This annual report is dedicated to presenting how we are building Macy’s
and Bloomingdale’s one customer at a time, molding our brands around
the needs, wants and aspirations of the diverse customers who shop
our stores and have very high expectations of their experiences with us.
Delivering on this mission requires a very special organization. At Federated,
we are fortunate to have the best people in retailing. In 2006, we accom-
plished a great deal because of the commitment, long hours and personal
sacrices of the thousands of dedicated associates in our company. We
are grateful for their contributions.
We also appreciate the unwavering support of our shareholders who share
our vision for creating the premier national retailer we have become.
The road ahead looks very exciting indeed.
2006 ANNUAL REPORT | 3
T J. L
Chairman, President & Chief Executive Ocer