Macy’s Inc. reported fiscal fourth‑quarter 2025 results that surpassed analyst expectations, with net sales of $7.6 billion and a 1.8% rise in comparable sales. Adjusted earnings per share reached $1.67, beating the consensus estimate of $1.56 by $0.11, a 7% beat. Revenue also outperformed the consensus estimate of $7.46 billion, exceeding it by $0.14 billion or 1.9%.
The company’s three brands contributed to the upside. Bloomingdale’s comparable sales jumped 9.9%, while Bluemercury grew 1.3%. The Reimagine 125 store program added 1.0% to comparable sales growth for the full fiscal year. Despite a 1.7% year‑over‑year decline in total sales driven by legacy store closures, the positive comparable sales momentum signals a return to growth under the “Bold New Chapter” strategy.
Gross margin for the quarter was 35.2% of net sales, slightly below the 35.7% margin reported in the prior year. The decline is largely attributable to a 40‑basis‑point tariff impact; excluding tariffs, the margin rate would have expanded by about 10 basis points, indicating that pricing power and cost control remain intact.
Management guided for fiscal 2026 net sales of $21.40 billion to $21.65 billion and adjusted EPS of $1.90 to $2.10, a range that is modest and slightly below the analyst expectation of $2.20. The cautious outlook reflects macroeconomic uncertainty, tariff exposure, and geopolitical factors that could weigh on demand in the first half of the year.
The announcement was met with a positive market reaction: the stock rose 4.79% in pre‑market trading and climbed about 6% in early trading. Investors were driven by the earnings beat, the return to positive comparable sales growth, and progress in the company’s transformation program.
Tony Spring, Macy’s chair and CEO, said, “As we wrap up year two of the Bold New Chapter, I’m pleased with the growth and progress we’re making against our strategic priorities.” He added, “Nearly two years into our Bold New Chapter strategy, the focus of our work remains the same: strengthen our stores, simplify how we operate and invest in experiences that matter most to our customers.”
Headwinds for the company include tariff‑related margin pressure and broader macroeconomic uncertainty, while tailwinds are driven by robust performance in the luxury banners, the Reimagine 125 store program, and the expanding Macy’s Media Network. Together, these factors suggest that the company’s transformation is gaining traction, but that external risks will continue to shape near‑term performance.
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