Macy's (M) Q1 2025 Earnings
How Did M Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +5.12%.
Did M Beat Earnings? Q1 2025 Results
Yes. Macy's reported Q1 2025 earnings of $0.16 a share on May 28, 2025, beating the $0.15 consensus estimate by 6.6%. Revenue was $4.8B against a $4.4B estimate.
Macy's delivered a better-than-expected first quarter, posting adjusted diluted EPS of $0.16 against a consensus estimate of $0.15, a beat of 6.60%, while revenue of $4.79 billion topped the $4.43 billion estimate by 8.26%, even as total sales slipped 4.1% year over year. The headline figures masked a more nuanced story underneath: net sales of $4.60 billion fell 5.1% from a year ago, with roughly $170 million of that decline tied directly to planned store closures under CEO Tony Spring's "Bold New Chapter" turnaround strategy. Among the standouts, Bloomingdale's posted net sales growth of 2.6% and Bluemercury extended its comparable sales growth streak to 17 consecutive quarters, while the 125 Reimagine stores within the core Macy's fleet outperformed the broader nameplate. Credit card net revenues surged 31.6% to $154 million, providing a meaningful lift to other revenue. Looking ahead, Macy's reaffirmed its full-year net sales outlook of $21.0 billion to $21.4 billion but trimmed adjusted diluted EPS guidance to $1.60 to $2.00, citing tariff pressures and a more promotional competitive environment.
- Bloomingdale's delivered 3.8% owned-plus-licensed-plus-marketplace comparable sales growth
- Bluemercury achieved 17th consecutive quarter of comparable sales growth at 1.5%
- Reimagine 125 locations outperformed the broader Macy's fleet with owned comps down only 1.3% vs 2.9% for Macy's overall
- Credit card net revenues increased 31.6% to $154 million
- Gross margin held flat at 39.2% with improved merchandise margin
- Store closures contributed approximately $170 million in lost sales from Q1 2024
“We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates.”
Macy's CEO, on the earnings call
What Was Macy's's Outlook in Q1 2025?
Macy's reaffirmed its annual net sales guidance of $21.0 billion to $21.4 billion and comparable owned-plus-licensed-plus-marketplace sales change of down ~2.0% to down ~0.5% versus 2024. However, the company significantly lowered profitability guidance to account for initial and current tariffs, moderation in consumer discretionary spending, and a heightened competitive promotional landscape. Adjusted diluted EPS guidance was reduced to $1.60–$2.00 from the prior $2.05–$2.25. Adjusted EBITDA as a percent of total revenue was lowered to 7.4%–7.9% from 8.4%–8.6%, and Core Adjusted EBITDA margin was cut to 7.0%–7.5% from 8.0%–8.2%. The company expressed confidence that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt.
M YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $4.8B | $5.0B | −4.1% |
| Gross Profit | $1.8B | $2.1B | −12.2% |
| Operating Income | $94.0M | $125.0M | −24.8% |
| Net Income | $38.0M | $62.0M | −38.7% |
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.