Macy`s Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.16%.
Did M Beat Earnings? Q3 2026 Results
Macy's delivered a sharply better-than-expected third quarter for fiscal 2025, posting adjusted diluted EPS of $0.09 against a consensus estimate of negative $0.13, a beat of 168.18%, as the retailer's "Bold New Chapter" restructuring strategy began showing tangible results. Revenue of $4.91 billion topped the $4.56 billion consensus by 7.78% and was roughly flat year-over-year, up 0.2%, even as planned store closures trimmed net sales. The most material driver was comparable sales momentum, with owned comps rising 2.5% across all nameplates, the strongest such performance in 13 quarters; Bloomingdale's led the way with 8.8% owned comparable sales growth, while the 125 reimagined Macy's locations continued to outperform the broader nameplate. A 31.7% surge in credit card revenues to $158.00 million and a $40.00 million reduction in SG&A expenses further supported the bottom line. Encouraged by the results, management raised full-year adjusted diluted EPS guidance to $2.00 to $2.20, up from a prior range of $1.70 to $2.05, though the outlook assumes current tariffs persist and a more selective consumer in the fourth quarter.
- Strongest comparable sales growth in 13 quarters, up 2.5% owned and 3.2% O+L+M
- Bloomingdale's comparable sales up 8.8% on owned basis, fifth consecutive quarter of comparable sales growth
- Reimagine 125 locations continued to outperform broader Macy's nameplate with 2.3% owned comp sales growth
- Credit card revenues increased 31.7% to $158 million
- SG&A expenses decreased $40 million, improving 90 basis points as a percentage of total revenue
- Tariff impact of 50 basis points on gross margin was better than expectations due to mitigation actions
- Bluemercury reported positive 1.1% comparable sales growth
“Our third quarter sales were the strongest in 13 quarters, reflecting the acceleration of our Bold New Chapter strategy and demonstrating that the meaningful enterprise-wide changes we've made are resonating with customers.”
Macy's CEO, on the earnings call
Forward Guidance & Outlook
Macy's, Inc. raised its full-year fiscal 2025 guidance. Net sales are now expected at $21.475 billion to $21.625 billion (up from $21.15 billion to $21.45 billion). Comparable O+L+M sales are expected flat to up ~0.5% versus 2024 (improved from down ~1.5% to down ~0.5%). Go-forward business comparable O+L+M sales are expected flat to up ~1.0% (improved from down ~1.5% to ~flat). Adjusted EBITDA as a percent of total revenue is expected at 7.8% to 8.0% (up from 7.4% to 7.9%). Adjusted diluted EPS guidance was raised to $2.00 to $2.20 (from $1.70 to $2.05). Expected full-year asset sale gains were lowered to $60 million to $65 million from $90 million. Guidance assumes current tariffs remain in place and a more choiceful consumer in Q4.
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Figures from SEC filings and company reports. Not investment advice.