Exhibit 99.1
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MAY
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MAY
The May Department Stores Company
Xxxx & Xxxxxx
Famous Xxxx
Filene's
Xxxxx'x
Xxxxx'x
Xxxxxxxx'x
XX Xxxxx
Xxxxxxxx Xxxxx'x
Xxxxx & Xxxxx
Xxxxxxxxx May
Strawbridges
The Xxxxx Store
Xxxxx's Bridal
After Hours Formalwear
Xxxxxxxxx of Boston
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MAY
XXXXXXXX XXXXX'X
Acquisition
[Merchandise Photo]
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MAY
XXXXXXXX XXXXX'X
62 Stores
[Map]
Department Stores
May - 438
Xxxxxxxx Xxxxx'x - 62
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MAY
STRATEGIC RATIONALE
- Chicago, Minneapolis and Detroit
- 2003 revenues: $2.6 billion
- 2003 EBIT: $107 million
- Expense and merchandise synergies
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FINANCIAL PERFORMANCE
2003
XXX 15.8%
Sales $13.3 Billion
EPS* $1.98
Cash Flow $ 1.7 Billion
* before restructuring expenses and tax credit
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CAPITAL STRUCTURE
- $3.2 billion cash purchase
- Long-term debt: $2.2 billion
- Short-term debt and cash: $1 billion
- Impact on debt/capital
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STRONG CASH FLOW
- Investing $600 million
- Reducing debt
- Dividends
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DIVIDENDS
- 97 cents per share
- Increased for 29 years
- Uninterrupted for 93 years
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GROWTH
- Department stores
- Bridal Group
- Other opportunities
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MAY
INITIATIVES
- Differentiated merchandise
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MAY
NEWNESS AND FASHION
Genuine and Faux Fur
[Merchandise Photo]
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NEWNESS AND FASHION
Ponchos and Argyles
[Merchandise Photo]
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PROPRIETARY BRANDS
Xxxxx Xxxxx
i.e.
All Mine
Exceed
Q & A
Xxxxx Landing
Xxxx Xxxxxxx
Xxxxx Xxxxxx Intimates
Brandini
Xxxxxx Xxxxx
Xxxxxxx Xxxxxxx
Xxxxxxxx Xxxxxx
Just Friends
Ideology
Sun Covers
Pacer by Xxxxx Xxxxx
Emerge
Moonbeams
Lord & Xxxxxx
Xxxxx Xxxxxx
Metropolitan by Xxxx & Xxxxxx
Context
Angel Fish
Global I.D.
Spotted Frog
Identity by Xxxx & Xxxxxx
Xxxx Xxxx
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PROPRIETARY BRANDS
Ideology
[Merchandise Photo]
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PROPRIETARY BRANDS
i.e. and i.e. relaxed
[Merchandise Photo]
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MAY
PROPRIETARY BRANDS
Xxxxxxx Xxxxxxx Xxxxxxxx
[Merchandise Photo]
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MAY
PROPRIETARY BRANDS
Brandini
[Merchandise Photo]
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PROPRIETARY BRANDS
Hotel Suite
[Merchandise Photo]
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PROPRIETARY BRANDS
House Beautiful
[Merchandise Photo]
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TRAFFICE GENERATORS
Tech Gift Centers
[Merchandise Photo]
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MAY
Giftables
[Merchandise Photo]
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INITIATIVES
- Differentiated merchandise
- Grow better segments
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GROW BETTER SEGMENTS
Xxxxxxx by Xxxxxxx Xxxx
[Merchandise Photo]
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MAY
GROW BETTER SEGMENTS
Xxxxxx Xxxxx Xxxxxx
[Merchandise Photo]
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MAY
GROW BETTER SEGMENTS
Xxxxxx Xxxxx and Xxxxx Signature
[Merchandise Photo]
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MAY
GROW BETTER SEGMENTS
Xxxxxx Xxxxx and Xxxxxxx Xxxx
[Merchandise Photo]
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MAY
INITIATIVES
- Differentiated merchandise
- Grow better segments
- Grow younger businesses
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MAY
GROW YOUNGER BUSINESSES
- 19-30 year olds
- 31-44 year olds
[Merchandise Photo]
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GROW YOUNGER BUSINESSES
Proprietary Brands
- Ideology
- i.e.
- Brandini
[Merchandise Photo]
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GROW YOUNGER BUSINESSES
Bridal Group
[Merchandise Photo]
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IMAGINATION!
- Casual
- Tailored
[Graphic: Floor Layout]
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IMAGINATION!
[Occasion Merchandising Photo]
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IMAGINATION!
[Occasion Merchandising Photo]
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INITIATIVES
- Differentiate merchandise
- Grow better segments
- Grow younger businesses
- Easier, faster, more enjoyable shopping
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BETTER EDITED MERCHANDISE
Wider Aisles and More Open Departments
[Floor Layout Photo]
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MORE FASION GUIDANCE
Assemble Outfits and Translate Trends
[Merchandise Photo]
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MORE INFORMATION
Directional Signage and Price Checkers
[Photo]
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EASIER TRANSACTIONS
Smart Terminals
[Photo]
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LORD & XXXXXX
- Repositioning as upscale retailer
- Distinctive fashion and style
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LORD & XXXXXX
- 32 stores to be divested
- 19 stores to be closed by year-end
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LORD & XXXXXX
[Map]
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BRIDAL GROUP
Xxxxx's Bridal
After Hours Formalwear
Xxxxxxxxx of Boston
[Merchandise Photo]
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[Bridal Merchandise Photo]
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EXPENSE MANAGEMENT
- Strong financial disciplines
- Culture of continuous improvement
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MAY
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