Macy`s Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.42%.
Did M Beat Earnings? Q3 2025 Results
Macy's delivered a modest beat in its fiscal third quarter, posting adjusted diluted EPS of $0.04 against a consensus estimate of $0.03 for a 58.73% beat, while revenue of $4.90 billion topped expectations by 3.91%, though it still fell 2.7% from a year ago. The quarter was dominated by the fallout from an internal accounting scandal, in which a single employee was found to have concealed approximately $151.00 million in cumulative delivery expenses over nearly three years; while the company determined no restatements of previously filed financials were required, a $13.00 million delivery expense adjustment burdened Q3 gross margin by roughly 30 basis points. Beneath the noise, Macy's "Bold New Chapter" strategy offered selective encouragement, with its First 50 locations posting a third consecutive quarter of comparable sales growth and Bluemercury extending its positive comp streak to fifteen quarters. Looking ahead, the company guided full-year net sales of $22.30 billion to $22.50 billion and adjusted diluted EPS of $2.25 to $2.50, with quarter-to-date comparable sales trending ahead of Q3 levels across the portfolio.
- Macy's First 50 locations delivered third consecutive quarter of comparable sales growth, up 1.9%
- Bloomingdale's comparable sales growth of 3.2% on owned-plus-licensed-plus-marketplace basis driven by contemporary apparel, beauty and digital
- Bluemercury comparable sales growth of 3.3%, fifteenth consecutive quarter of positive comps, driven by skincare offerings
- Fragrances, dresses and men's and women's active apparel were strong categories at Macy's
- Macy's Media Network revenue rose 13.9% reflecting higher advertiser and campaign counts
- Asset sale gains of $66 million from monetization of non-go-forward assets
“Our third quarter results reflect the positive momentum we are building through our Bold New Chapter strategy. We are encouraged by the consistent sales growth in our Macy's First 50 locations and the strong performance of Bloomingdale's and Bluemercury. Quarter-to-date, comparable sales continue to trend ahead of third quarter levels across the portfolio. Looking ahead, we remain committed to achieving sustainable, profitable growth for Macy's, Inc.”
Macy's CEO, on the earnings call
Forward Guidance & Outlook
Macy's updated its full-year 2024 guidance (52-week basis) as of December 11, 2024: net sales of $22.3 billion to $22.5 billion; comparable owned-plus-licensed-plus-marketplace sales change down approximately 1.0% to approximately flat versus 2023; gross margin rate of 38.2% to 38.3%; adjusted EBITDA as a percent of total revenue of 8.0% to 8.4%; and adjusted diluted EPS of $2.25 to $2.50. The guidance includes the impact of $13 million in Q3 and an estimated $66 million in Q4 delivery expense adjustments ($79 million total for the full year). Quarter-to-date comparable sales continue to trend ahead of third quarter levels across the portfolio. Adjusted diluted EPS guidance excludes any potential impact from the credit card late fee ruling and future share repurchases.
M YoY Financials
M Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.