The fine print does not say that it excludes clearance merchandise, so it sounds like you might be able to get some great deals if you shop those clearance racks and use this coupon.
Excludes: Everyday Values (EDV), specials, super buys, shoes for her, furniture, mattresses, floor coverings, rugs, electrics/electronics, cosmetics/ fragrances, gift cards, jewelry trunk shows, previous purchases, special orders, selected licensed depts., special purchases, services, macys.com. Cannot be combined with any savings pass/coupon, extra discount or credit
offer, except opening a new Macy’s account. Dollar savings are allocated as discounts off each eligible item, as shown on receipt. When you return an item, you forfeit the savings allocated to that item. This coupon has no cash value and may not be redeemed for cash, used to purchase gift cards or applied as payment or credit to your account. Purchase must be $25 or more, exclusive of tax and delivery fees.
Thanks Thrifty and Thriving!