Macy`s Inc
Q3 2027 Earnings
Includes a $0.23 net tariff refund benefit ($0.31 gross tariff refund less $0.08 tax impact); GAAP EPS of $0.62 also excludes benefit plan income of -$0.02, impairment/restructuring costs of $0.06, and gains on sale of real estate of -$0.03
Market Reaction
Did M Beat Earnings? Q3 2027 Results
Macy's, Inc. delivered a blowout third quarter of fiscal 2027, posting adjusted earnings of $0.63 per share against a Wall Street consensus of $0.36, a 72.65% beat that extended the company's streak of topping EPS estimates to ten consecutive quarters. Revenue of $5.06 billion, up 1.2% year-over-year, also cleared the $4.80 billion consensus by 5.40%, driven by broad-based comparable sales growth of 2.7% across all three nameplates, with Bloomingdale's surging 11.3% in its second consecutive quarter of double-digit comps. The quarter's headline earnings were meaningfully lifted by $98 million in IEEPA tariff refunds received during the period, which expanded gross margin by 180 basis points to 41.5% of net sales; management noted that roughly $96 million of the windfall is being reinvested into the Bold New Chapter strategy rather than flowing directly to the bottom line. Adjusted EBITDA climbed to $457 million, or 9.0% of total revenue, from $373 million a year ago. On the strength of the results, Macy's raised its full-year adjusted diluted EPS guidance to $2.15 to $2.35, with comparable sales growth now expected between 1.0% and 1.5%.
- Comparable sales growth of 2.7% across all nameplates, fifth consecutive quarter of positive comps
- Bloomingdale's delivered 11.3% comparable sales growth, second consecutive quarter of double-digit growth
- Reimagine 200 Macy's locations outperformed with 1.9% comp growth
- Bluemercury comparable sales increased 6.2%
- Gross margin expanded 180 basis points to 41.5%, driven by net tariff refunds; core margin up 10 basis points
- SG&A as a percent of total revenue improved 20 basis points to 38.7%
- IEEPA tariff refunds of $98 million received in Q2 plus $18 million post-quarter
- Credit card net revenues grew 2.0% supported by healthy credit portfolio and stable net credit card losses
“Our second-quarter performance builds on the progress our colleagues have consistently delivered through our Bold New Chapter strategy. The investments we're making are driving results across our portfolio, from the continued outperformance of our Reimagine 200 Macy's stores, to meaningful double-digit growth at Bloomingdale's and another solid quarter at Bluemercury. As we enter the second half of the year, we remain focused on scaling what is resonating most with customers – exciting brands and assortments and compelling events and experiences. Combined with disciplined execution, we expect these efforts to continue to build a durable foundation for sustainable, profitable growth.”
Macy's CEO, on the earnings call
Forward Guidance & Outlook
Macy's raised its full-year fiscal 2026 guidance across all key metrics. Net sales are now expected at $21.675 billion to $21.825 billion (up from $21.5 billion to $21.75 billion), reflecting a roughly $145 million headwind from fiscal 2025 store closures. Comparable sales growth is expected at 1.0% to 1.5% (up from 0.5% to 1.2%). Adjusted EBITDA as a percent of total revenue is guided at 7.8% to 8.0% (up from 7.7% to 7.9%). Adjusted diluted EPS is expected at $2.15 to $2.35 (up from $2.00 to $2.20). The guidance incorporates approximately $0.05 per share flowing through from tariff refunds to full-year adjusted EPS, with approximately $0.18 per share of tariff refund reinvestment in the second half. Guidance also reflects planned investments in Reimagine 200 locations and luxury nameplates. The company acknowledges macroeconomic and geopolitical factors that could influence discretionary spend and is taking a prudent approach to guidance.
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Figures from SEC filings and company reports. Not investment advice.