Macy’s (NYSE: M) delivered a strong fiscal Q4 and full-year 2025 performance, with adjusted EPS of $1.67 beating estimates by $0.12 and quarterly revenue of $7.92 billion topping the $7.78 billion consensus by 1.7%. For the full fiscal year, adjusted and GAAP diluted EPS came in at $2.32, exceeding the company’s own guidance range. Shares jumped +8.2% the following trading day.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is one of America’s most iconic omni-channel retail groups, founded in 1858 and headquartered in New York City. The company operates three distinct nameplates: the flagship Macy’s department store chain, the upscale Bloomingdale’s fashion banner, and the luxury beauty boutique Bluemercury. As of March 2026, Macy’s carries a market capitalization of approximately $4.50 billion, with trailing twelve-month revenue of $22.62 billion.
The company’s Bold New Chapter strategy, launched in early 2024 by Chairman and CEO Tony Spring, centers on closing roughly 150 underperforming Macy’s locations by 2026, reinvesting in high-potential “Reimagine 125” stores, and accelerating growth at its luxury nameplates. During fiscal 2025, Macy’s reported a net margin of 2.10% and a return on equity of 15.57%. The company has consistently returned capital to shareholders through quarterly dividends, paying back $197 million in the full fiscal year 2025.
Top Financial Highlights
Key data points from the Q4 and Fiscal Year 2025 results:
- Q4 Net Sales: $7.92 billion, down 1.7% year over year but exceeding analyst estimates of $7.78 billion by 1.7%
- Full-Year Net Sales: approximately $22.62 billion on a trailing twelve-month basis; FY2025 guidance midpoint was $21.53 billion
- Q4 GAAP Diluted EPS: $1.84; Adjusted diluted EPS of $1.67, beating analyst consensus of $1.56 by 6.8%
- Full-Year GAAP and Adjusted Diluted EPS: $2.32, exceeding the company’s own guidance range of $2.00 to $2.20
- Q4 Adjusted EBITDA: $840 million, or 10.6% of revenue, beating estimates of $812 million by 3.4%
- Q4 Operating Margin: 9.4%, up significantly from 6.2% in Q4 of the prior year
- Q4 Comparable Sales: up 1.8% on an owned basis, exceeding company guidance
- Full-Year Comparable Sales: up 1.5%, marking Macy’s first return to positive comparable sales growth in multiple years
- Bloomingdale’s Q4 Comparable Sales: up 9.9%; full-year comparable sales rose 7.4%
- Bluemercury Q4 Comparable Sales: up 1.3%; full-year comparable sales grew 1.6%
- Macy’s Reimagine 125 Locations delivered Q4 comparable sales growth of 0.9% and full-year growth of 1.0%
- Other Revenue (full year): $857 million, up 20.2%, driven by a 24.6% rise in credit card net revenues
- Full-Year Gross Margin Rate: 38.0%, down 40 basis points due to tariff impacts and proactive markdowns
- FY2026 Adjusted Diluted EPS Guidance: $1.90 to $2.10 at the midpoint of $2.00, missing analyst estimates by 6.5%
- FY2026 Net Sales Guidance: $21.4 billion to $21.65 billion, midpoint of $21.53 billion, approximately 2.6% above analyst estimates
Beat or Miss?
| Metric | Reported | Analyst Estimate | Difference / Analysis |
| Q4 Revenue | $7.92B | $7.78B | Beat by ~$140M (+1.7%) |
| Q4 Adjusted EPS | $1.67 | $1.56 | Beat by $0.11 (+6.8%) |
| Q4 GAAP EPS | $1.84 | N/A | Above company guidance |
| Q4 Adjusted EBITDA | $840M | $812M | Beat by $28M (+3.4%) |
| Q4 Operating Margin | 9.4% | N/A | Up from 6.2% prior year |
| Q4 Same-Store Sales | +1.8% | N/A | Beat company guidance |
| Full-Year GAAP/Adj. EPS | $2.32 | $2.00–$2.20 guidance | Exceeded guidance range |
| FY2026 Adj. EPS Guidance | $2.00 midpoint | ~$2.14 consensus | Missed by 6.5% |
| FY2026 Net Sales Guidance | $21.53B midpoint | ~$20.97B consensus | Beat by ~2.6% |
What Leadership Is Saying
CEO Tony Spring on Strategy and Vision:
“All three of our brands experienced growth during the fiscal year and the holiday quarter. This marks the first time in three years that Macy’s returned to positive comparable sales growth of 1.5% for the full year. Even in recent weeks, our customers have demonstrated continued resiliency, investing in new clothing and gravitating toward contemporary brands and trending products. We are not economists, but our team is really focused on controlling what they can control.”
CFO Tom Edwards on Financials and Forward Outlook:
“We will implement price increases. We have already initiated some adjustments and are negotiating within the marketplace. Our approach is tailored rather than one-size-fits-all. We are adopting a precise strategy.”
Historical Performance
Q4 Year Over Year Comparison
| Category | Q4 FY2025 | Q4 FY2024 | Change (%) |
| Net Sales | $7.92B | $8.03B | -1.40% |
| Q4 Net Sales (press release) | $7.6B | $7.8B | -2.60% |
| Adjusted EPS | $1.67 | $1.80 | -7.20% |
| GAAP EPS | $1.84 | $1.21 | 52.10% |
| Operating Margin | 9.4% | 6.2% | +320 bps |
| Bloomingdale’s Comp Sales | +9.9% | +4.8% | Accelerated |
| Comparable Sales (overall) | +1.8% | -1.1% | Turned |
Full Fiscal Year Comparison
| Category | FY2025 | FY2024 | Change (%) |
| Net Sales | $21.8 billion | $23.01 billion | -5.20% |
| Comparable Sales | +1.5% | -0.9% (approx.) | ~+240 bps |
| GAAP Net Income | $642 million | $582 million | 10.30% |
| GAAP Diluted EPS | $2.32 | $2.07 | 12.10% |
| Operating Cash Flow | $1.4 billion | $1.3 billion | 7.70% |
| Free Cash Flow | $797 million | $679 million | 17.40% |
| Gross Margin Rate | 38.0% | ~38.4%+ | -40 bps |
Competitor Comparison (Q4 FY2025)
| Category | Macy’s Q4 FY2025 | Kohl’s Q4 FY2025 | Nordstrom Q4 FY2024 |
| Net Sales | $7.92 billion | $4.97 billion | $4.20 billion |
| Comparable Sales Change | +1.8% | -2.8% | +4.7% |
| Net Income | $507 million | $125 million | $165 million |
| Adjusted EPS | $1.67 | $1.07 | $1.10 |
| Gross Margin Rate | 35.2% | 33.1% | 37.3% |
| YoY Net Sales Change | -1.7% | -3.9% | -2.1% |
Macy’s was the standout in comparable sales growth among traditional department stores, rising 1.8% at a time when Kohl’s posted a 2.8% comparable sales decline. Nordstrom, whose most recent comparable Q4 data is for its FY2024 (ended Feb 2025), led on comparable sales at +4.7% – though Nordstrom has since gone private. Kohl’s issued a cautious fiscal 2026 outlook, citing consumers pulling back from higher-margin categories, while Macy’s comparable sales beat surprised to the upside.
How the Market Reacted?
Macy’s shares surged approximately 8.8% to 9% in premarket trading on March 18, 2026, after the company closed Tuesday at a five-month low of $16.92, then opened at $17.59 before trading around $18.05. The strong fourth-quarter comparable sales growth of 1.8% defied analyst expectations of a decline, delivering the third consecutive quarter of positive comparable sales – a milestone not expected by Wall Street.
Despite the Q4 earnings beat, investor sentiment was tempered by the fiscal 2026 adjusted EPS guidance of $1.90 to $2.10, which fell short of the consensus estimate of approximately $2.20 to $2.21 and incorporated a 10 to 20 cent headwind from tariffs.
Analyst reactions were mixed, with Goldman Sachs raising its price target from $16.50 to $22.00 at “neutral,” Telsey Advisory Group lifting its target to $25.00 at “market perform,” and UBS maintaining a “sell” with a $9.00 target. Overall, the stock was still down 23.3% year-to-date heading into the results, but had gained 24.8% over the prior 12 months versus the S&P 500’s 19.6% gain.
