Macy's Q4 tops Streets as turnaround gains momentum
Macy’s Inc. reported better-than-expected fourth-quarter earnings and sales, and comparable gains across its three banners as the turnaround at its namesake brand continues to shows progress.
The department store giant also marked an important milestone in 2025 as the company returned to positive growth for the first time in three years, with comparable sales increasing 1.5% for the full year.
The company was cautious in its earnings guidance for 2026, noting that “there are macroeconomic and geopolitical factors that could influence discretionary spend.” It outlook also includes an expected “meaningful impact” from tariffs in the first quarter, which should ease as the year progresses.
Macy’s net income rose to $507 million, or $1.84 per share, for the quarter ended Jan. 31, compared with $342 million, or $1.21 per share, in the year-ago period. Adjusted earnings per share came to $1.67, topping analysts estimates of $1.53 per share.
Net sales fell 1.7% to $7.64 billion, ahead of estimates for $7.62 billion. Comparable sales rose 1.8% including owned and licensed merchandise.
By nameplate, comparable sales at Bloomingdale’s increased 9.9% as the beauty chain enjoyed its best holiday quarter ever. At Bluemercury, comp sales were up 1.3%.
Comparable sales for Macy’s inched up 0.4%. Comp sales at Macy’s “go-forward” stores (the stores that the retailer plans to keep open) sales rose 0.6%. At the “reimagined” stores (locations where Macy’s has made investments) comp sales rose 0.9%.
In other revenue, Macy’s media network revenue net rose 12.5%, to $72 million.
“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,” Tony Spring, chairman and CEO of Macy’s said in the earnings statement. “At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer. Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses.”
Introduced in February 2024, Macy’s three-year Bold New Chapter strategy includes closing approximately 150 Macy’s stores, prioritizing investment in approximately 350 “go-forward” nameplate locations and accelerating growth in the luxury sector with the opening of about 15 Bloomingdale’s stores and at least 30 Bluemercury stores during the next three years.
To date, some 125 Macy’s stores have been “reimagined.” Another 75 locations are on track to be upgraded this year.
For 2026, Macy’s estimates sales of $21.4 billion to $21.65 billion, with comparable sales down 0.5% to up 0.5%. Adjusted earnings per share are projected at $1.90 to $2.10.
