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In this tutorial, the presenter explains how to format dates in Excel when date values are stored as text. The steps include going to the Data tab and selecting "Text to Columns," ensuring "Delimited" is chosen, and clicking "Next" twice. In the dialog box, the user selects the date format as "MDY" and clicks "Finish" to convert text to date format. Finally, the presenter demonstrates how to access the Format Cells dialog by pressing Control + 1, allowing users to customize the date format, such as displaying it in "MMM - YY" style.